The main reason to create a Durable Power of Attorney for finances is to avoid court proceedings if you become incapacitated.

If you don’t have a Durable Power of Attorney, your relatives or other loved ones will have to file formal court proceedings and ask a judge to name someone to manage your financial affairs.

These proceedings are commonly known as conservatorship proceedings. Depending upon where you live, the person appointed to manage your finances is called a conservator, guardian of the estate, committee or curator.