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What are the differences between a durable and a nondurable POA?

On Behalf of | Jan 23, 2025 | Estate Planning - Power of Attorney

When someone grants power of attorney, they allow another person to make important decisions on their behalf. The type of power of attorney chosen—durable or nondurable—affects how and when those decisions can be made. 

Understanding these differences can help ensure that the arrangement meets specific needs and circumstances. Maryland’s laws clearly distinguish between these two types.

Durable power of attorney

A durable power of attorney remains effective even if the person who granted it becomes incapacitated. This type is often used for long-term planning, as it ensures the appointed agent can continue making decisions in situations like illness or injury. For example, a durable power of attorney can cover financial management, healthcare decisions, and other critical responsibilities during a period of incapacity.

Under Maryland law, a durable power of attorney must include specific language indicating that it remains valid if the individual becomes incapacitated. Without this language, the document is considered nondurable by default.

Nondurable power of attorney

A nondurable power of attorney is typically used for short-term or specific purposes. It automatically ends if the person granting it becomes incapacitated. Common uses include authorizing someone to handle a single financial transaction or overseeing certain tasks during a temporary absence. Since it does not extend beyond incapacity, it is less suitable for comprehensive planning.

Choosing the right option

Deciding between durable and nondurable powers of attorney depends on individual needs. Durable powers of attorney are better suited for long-term situations, while nondurable ones work well for limited, short-term arrangements. Maryland residents should ensure these documents comply with state requirements to avoid legal complications.

Understanding the differences between durable and nondurable powers of attorney helps individuals protect their interests and maintain control over important decisions in their lives.

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