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A durable power of attorney involves two parties: a principal, who grants authority, and an agent, chosen to handle financial matters on the principal’s behalf. This agreement is typically documented in writing. Although a spouse is commonly selected as an agent, the principal can choose anyone they trust, often an individual named in their will. The principal may appoint multiple agents to make decisions together or designate an alternative agent if the primary one cannot act. Unlike a general power of attorney, which expires upon the principal's incapacitation as determined by the court, a durable power of attorney remains effective until the principal's death or revocation.
