Definition

Power of attorney is a document containing instructions whereby one individual, the principal, assigns contractual and financial obligations over to another individual.

Former Rules

Traditionally, power of attorney expired upon mental incapacitation of the principal, thus assigning their financial powers over to another. The state of Texas has determined that it is at this time when the principal's needs for representation are greatest.

Differences

Durable power of attorney is different in that, rather than expiring upon principal's mental incapacitation or disability, it remains in effect. For the earlier definition to hold, the document must contain the words: "This power of attorney becomes effective upon the disability or incapacity of the principal."

Limits

The principal retains the power to establish limits of authority within the terms of the power-of-attorney document itself. Multiple power-of-attorney documents can be considered, each with its defining responsibility and its own agent to act.

Other Qualifications

The principal drawing up the document also enjoys the right of pre-determining the definition of disability or incapacity itself within the instructions of the document. The more specific, the better--for all parties concerned. If the definition of disability or incapacity are not pre-defined, the power of attorney order takes effect upon a physician declaring in writing that the agent can no longer care for his or her own financial matters.

Source:

durable power of attorney pdf

Texas statuatory durable power of attorney