In this legal document, you assign a person as your “agent” who will act in your place, managing assets titled in your name.
An agent named under a power of attorney has no authority over assets you have titled into a trust – only a trustee can manage assets titled in a trust.
A DPOA takes effect (is valid) when you sign it, but primarily is utilized when you become incapacitated (either physically or mentally) and cannot manage your bills or assets (assets not titled in a trust.)
A DPOA is also required by the Department of Children and Families (DCF) when applying for Medicaid assistance for another person if a qualified income trust or personal care contract are needed (see Medicaid page for additional information.)
Key Advice – do not name someone as your agent under a Durable Power of Attorney unless you are sure that you can trust him or her with the management of your assets when you are unable to manage your own finances.