Durable power of attorney for finances

A power of attorney for finances is a legal paper. In it, one person gives another person the right to handle money and property for them. The person who signs is called the principal. The person they choose is called the agent.⁶

For someone with dementia, this may be the most important paper to sign early. Dementia slowly takes away the ability to manage bills, banks and property. If a power of attorney is already in place, a trusted person can step in without going to court.^2,7

What "durable" means

A power of attorney that is not durable ends when the principal can no longer manage their own affairs.³ That is exactly when families living with dementia need it most. A durable power of attorney solves this. It stays in force even after the principal can no longer make decisions.²

In Virginia, the law treats every power of attorney as durable unless the paper itself says it ends at incapacity.³ Still, most lawyers write the word "durable" clearly into the document so there is no doubt.

A power of attorney for finances is different from a health care paper. Choosing someone to make medical decisions is done in an advance directive. Many people sign both at the same time, and often name the same person.

When to sign: the question of capacity

Capacity here means being able to understand a choice and what will happen because of it.¹ A diagnosis of dementia does not, by itself, mean a person cannot sign. What matters is whether they understand this particular paper: who they are choosing, and what that person will be able to do.¹

Capacity fades over time. A person who can sign today may not be able to sign in a year. That is why planning right after the diagnosis matters so much. See after the diagnosis: the first 30 days and early-stage dementia.

A few things can help when memory is already slipping:

• Pick a good time of day. Many people think more clearly in the morning.
• Let the person talk alone with the lawyer. This helps show the choice is their own.
• Ask the doctor for a note if anyone has doubts. The Alzheimer's Association suggests getting medical advice when there is concern about whether the person understands.¹
• Bring the old papers. The lawyer should review any power of attorney, will or trust the person already has.¹

Virginia notes

Virginia follows a law called the Uniform Power of Attorney Act. Here are the parts families most often need to know. Laws change, so check with a lawyer. These facts are current as of October 2026.

Signing. The principal must sign. Someone else may sign for them only in their presence and at their direction. When the principal confirms the signature in front of a notary, the law presumes it is real.³ A notarized paper also gives banks strong legal protection, so they are more willing to accept it.³

When it starts. Unless the paper says otherwise, it starts the day it is signed.³ Some people choose a springing power of attorney. It starts only after a set event, such as the principal losing capacity. If no one is named to decide that, Virginia law requires a written finding, for example from the doctor plus a second doctor or a licensed clinical psychologist.³ This step can delay help just when bills are piling up. Talk with a lawyer about which type fits you.

Papers from other states. A power of attorney signed in another state is valid in Virginia if it was made correctly under that state's law. Photocopies and electronic copies generally count the same as the original.³

Special powers must be written out. Some acts are serious enough that the agent can do them only if the paper clearly says so. These include making gifts, creating or changing a trust, and changing who gets an account or insurance policy after death.³ Gifts can matter later for Medicaid planning. Ask your lawyer whether to include them.

Divorce. If the agent is the principal's spouse, the agent's power ends as soon as either one files for divorce or legal separation, unless the paper says otherwise.³

Payment. Unless the paper says otherwise, the agent may be repaid for reasonable costs and may receive reasonable pay for their work.³

Family can ask for an accounting. Close relatives and some others can ask the agent to show what they have done with the money. The person asking must believe in good faith that the principal can no longer manage their own affairs. The agent must answer within 30 days, or explain in writing why more time is needed. The request can reach back 5 years.⁴

A 2026 change. A power of attorney can excuse the agent from these reporting duties. For papers made on or after July 1, 2026, that excuse only works if the principal signs or initials a clear statement. The statement must say they understand the waiver and want it, even if it may not be in their best interest later.⁴

Court review. If someone thinks the agent is misusing the power, family members, a caregiver, or Adult Protective Services can ask a court to review the agent's actions.³

Choosing your agent

This is the biggest choice in the whole paper. The agent can reach your bank accounts, pay bills, sell property and file taxes. Choose with care. The federal Consumer Financial Protection Bureau (CFPB) suggests asking yourself:⁷

• Do I trust this person completely? Can we talk openly about money?
• Are they willing to do the job, and do they have the time?
• Do they manage their own money well? Are they free of serious problems with debt, gambling or substance use?
• Will they include me in decisions as long as I can take part?
• Will they keep my money apart from their own and keep good records?

Name a backup. If your first choice dies, gets sick or simply cannot serve, a successor agent steps in.^1,7 Without one, the power of attorney may end and the family may need court help.

Talk it over. Tell your agent what matters to you. For example, do you want to stay at home as long as possible? Help a grandchild with school? Keep giving to your place of worship? An agent who knows your wishes can carry them out.¹ A family meeting can help everyone hear the same plan. The care circle tool can help you list who does what.

What an agent must do

Being an agent is a serious legal duty. Under Virginia law, an agent must act in good faith, stay within the powers given, and follow the principal's known wishes or best interest.³ The CFPB boils this down to four basic duties:⁶

1. Act only for the principal. Put their needs ahead of your own and other family members'.
2. Manage carefully. Be even more careful than you would be with your own money.
3. Keep their money separate. Never put their money in your account. Keep property in their name.
4. Keep good records. Save receipts and write down every amount, date and reason, even small ones.

Some practical tips from the CFPB guide:⁶

• Sign as agent. Write your name, then "as agent for" and the principal's name. Never sign the principal's name alone.
• Avoid cash when you can. Checks and card payments leave a record.
• Get legal advice before changing joint accounts.

An agent who breaks these duties can be removed by a court and may have to pay the money back, plus legal costs.^3,6

Working with banks

Banks are where many families first use a power of attorney, and where problems often come up.

Before you need it. While the principal can still take part, visit each bank together. Ask the bank to look at the power of attorney and put a copy on file. Ask if anything else is needed. This can save weeks later.

Bank forms. Some banks ask people to fill out their own power of attorney form. In Virginia, a bank may not require a different form when you show a notarized power of attorney that covers the task.⁵

Time limits in Virginia. Within 7 business days, the bank must either accept a notarized power of attorney or ask for one of these:⁵

• A signed and sworn statement from the agent about the facts (Virginia law includes a sample form)
• An English translation, if the paper is in another language
• A lawyer's opinion, with the bank giving its reason in writing

Once the bank gets what it asked for, it has 5 more business days to accept.⁵ A bank that refuses without a lawful reason can be ordered by a court to accept, and to pay legal fees.⁵

When a bank can say no. A bank may refuse if it knows the power has ended, if the act would break federal law, or if it believes in good faith that the power is not valid. It may also refuse if it has reported possible abuse by the agent to Adult Protective Services.⁵

If a bank refuses. Give copies, never the original. Ask for a supervisor. If that does not work, talk with a lawyer.⁶

Other helpful bank tools. Brokerage firms, and some banks, let you name a trusted contact person. The firm may call that person if it suspects fraud. The trusted contact cannot touch the money.⁷ A joint account is different. The other person co-owns the money and usually gets it at death. Think carefully before adding anyone to an account.⁷

What a power of attorney cannot do

• Social Security and SSI. An agent cannot manage these payments. Social Security must appoint a representative payee.⁸ A person can name up to three people in advance who could serve as payee if needed.⁹
• VA benefits. The Department of Veterans Affairs appoints its own fiduciary to manage VA payments.^6,7 See VA benefits for dementia.
• Health care decisions. These belong in a separate advance directive.
• After death. The power of attorney ends when the principal dies.³ The person's will or trust takes over then.

Watching for misuse

Most agents are loving family members who do their best. But money misuse by someone trusted does happen. Warning signs include missing money, large cash withdrawals, new accounts no one explains, unpaid bills, changed beneficiaries, or a new person who suddenly controls the money.⁶

If caregiving stress is wearing you down, you are not alone. Call or text 988 if you are in crisis or thinking about harming yourself.

Getting it done

You can find power of attorney forms online. But a lawyer who works with older adults can make sure the paper fits Virginia law, includes the right powers, and is signed properly. The Alzheimer's Association suggests an elder law attorney.¹ To find one, try the National Academy of Elder Law Attorneys directory, the Eldercare Locator at 800-677-1116, or LawHelp.org for free or low-cost legal help.¹ See finding an elder law attorney.

Before the meeting, gather a list of accounts and property, any old legal papers, deeds, recent tax returns, insurance policies, and contact details for the people involved.¹

What if we already have an old power of attorney?

Bring it to a lawyer. In Virginia, a newer power of attorney does not cancel an older one unless it says so.³ Make sure the papers do not conflict, and that the paper includes the powers you may need later, such as gifts or trusts.

Can the agent take over while the person can still decide?

The person keeps the right to make their own choices for as long as they have capacity.² A good agent helps, explains, and includes them. As dementia moves forward, the agent takes on more.

Can the person change their mind?

Yes. As long as they have capacity, the principal can cancel the power of attorney or change agents.³ Tell the old agent and the banks in writing.

Education only. This page is general information written from the sources listed. It is not medical, legal or financial advice and does not replace a doctor, therapist or lawyer who knows your situation. How we write and check pages.