durable financial power of attorney
Reviewed by Owen Hathaway, AttorneyUpdated June 4, 2026A document that lets a person name an agent to handle money and property matters, and that stays in effect if the person becomes incapacitated.
A durable financial power of attorney authorizes a named agent (or attorney-in-fact) to act on the principal's behalf in financial and property matters. The durable feature means the authority continues even after the principal becomes incapacitated, which is the central reason these documents exist.
The authority can be broad or limited and can take effect immediately or only upon incapacity (a springing power). It ends at the principal's death. To exercise similar authority after the principal passes, then someone must be appointed as the personal representative.
An agent trying to use a power of attorney granted under state law sometimes encounters limitations imposed by federal banking or securities law designed to detect money laundering.
Colorado has adopted the Uniform Power of Attorney Act (C.R.S. Title 15, Article 14, Part 7). Wyoming has its own Uniform Power of Attorney Act (Wyo. Stat. Title 3) [verify]. Both make powers durable by default unless the document states otherwise, but third parties' acceptance practices vary.
Related terms
- conservatorA person a court appoints to manage the finances and property of someone who can't manage their own, distinct from a guardian, who handles personal care.
- advance directiveAn umbrella term for legal documents that record health-care wishes and treatment instructions before a crisis, covering scenarios from temporary incapacity to persistent vegetative state to end of life.