A durable power of attorney (DPOA) is a legal document authorizing an agent to act on a principal's financial affairs and remaining effective if the principal becomes incapacitated. Unlike a standard power of attorney, "durable" status survives loss of capacity, allowing the agent to sign documents, manage accounts, and handle insurance or tax matters. DPOAes are tailored by state law and may be immediate or springing upon disability. They are foundational in estate, insurance, and retirement planning because they keep financial life functioning when a client cannot act, without court guardianship.

Advisors incorporate a DPOA into every foundational plan so an agent can sign applications, endorse checks, change beneficiaries when authorized, and manage premium payments if the client is incapacitated. Carriers often require copies during claims or policy changes. Coordinating DPOAes with trusts and HIPAA releases avoids service delays and enables smooth underwriting, billing, and asset transfers without court involvement.