A durable power of attorney gives you the power to appoint a trusted family member or friend as an agent to manage your finances if you are no longer capable of managing them yourself, such as if you become temporarily or permanently incapacitated.
If you become incapacitated and do not have a durable power of attorney in place, a court-ordered guardianship may be necessary. Guardianship is time-consuming and expensive, and can be avoided by creating a power of attorney.
It is not necessary to file a Durable Power of Attorney for it to be effective unless the agent will be entering into a real estate transaction on behalf of the principal. In that case, the durable power of attorney will need to be recorded in the County Clerk’s office of the county where the real estate is located.