Durable Power of Attorney in Texas
A durable power of attorney is a document that lets someone you choose (your agent) handle your financial affairs, and it keeps working if you become incapacitated. Texas has a statutory form, and the document can take effect immediately or only on a later event. It ends at your death. Without one, your family may need a court-supervised guardianship to manage your money.
What it covers
The agent can be given authority over banking, real estate, taxes, investments, insurance, retirement accounts, business matters, and government benefits. Texas has a statutory durable power of attorney form that lists these categories and lets you initial the ones you grant. You can add limits and special instructions. A power of attorney for finances is different from a medical power of attorney. See medical powers of attorney.
Immediate or springing
| Immediate | Springing | |
|---|---|---|
| When it takes effect | When you sign | When a stated event happens, such as a physician certifying incapacity |
| Advantage | No delay and no dispute about whether it is active | Agent has no power while you are well |
| Drawback | Agent has power right away, so trust matters most | Banks may question or delay a springing power |
Many people choose an immediate power but keep the original document and give it to the agent only when needed.
Choosing an agent
An agent has broad power over your money and owes you fiduciary duties, but misuse happens. Choose someone trustworthy and organized, name a successor in case the first agent cannot serve, and consider requiring the agent to keep records. For high-risk situations, you can require two agents to act together or have a third person receive copies of accountings.
Limits and risks
- The agent generally cannot make a will for you.
- The power ends at your death. After that, the executor or successor trustee takes over.
- Some banks reject older or unusual forms, so use a recent Texas form and consider having a copy on file with your bank.
- Gifts and changes to beneficiary designations require explicit language, so grant them only deliberately.
Why it matters
If you become incapacitated without a power of attorney, family members who need to pay bills or sell property may have to ask a court to appoint a guardian, which is public, slower and more costly than signing a document in advance. A power of attorney, together with a living trust, makes up the core of an incapacity plan. See what happens with no plan.
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Book Free ConsultationFrequently asked questions
Does a power of attorney end at death?
Yes. After death, the executor or successor trustee takes over, not the agent.
Can I revoke a power of attorney?
Yes, while you have capacity, by signing a written revocation and notifying the agent and institutions.
Do banks have to honor it?
Texas law has rules requiring acceptance of a proper statutory durable power of attorney, but institutions may still ask for additional documents, so give them a copy in advance.
Can the same person be agent and trustee?
Yes. Many people name the same trusted person for both roles.