What does a Durable Power of Attorney for Finances (DPOA) allow an agent to do?

A Durable Power of Attorney for Finances (DPOA) indeed allows an agent to authorize transactions in the principal's financial and legal matters. This legal document is specifically designed to grant an appointed individual, known as the agent or attorney-in-fact, the authority to act on behalf of the principal in various financial transactions. This includes managing bank accounts, making investments, paying bills, filing taxes, and handling other responsibilities that involve the principal's finances.

The DPOA is termed "durable" because it remains in effect even if the principal becomes incapacitated, ensuring that financial matters can be managed without interruption. This flexibility is crucial for maintaining financial stability during challenging times.

While managing real estate and aspects related to the principal's assets may also fall under the purview of a DPOA, the broader, more encompassing function of the DPOA is to authorize financial and legal transactions. Therefore, it is vital that any decisions made by the agent align with the best interests of the principal and adhere to the stipulations outlined in the DPOA itself.