Financial Power of Attorney
A power of attorney is a legal document under which a person termed a principal gives someone authority to make financial or medical decisions in his place. The authority of the agent is described in the document. It can be limited, like the authority to sell the principal's car, or general, giving the agent the power to take any action the principal could take himself.
Durable Power of Attorney
Generally, powers of attorney expire if the principal becomes incapacitated. However, a durable power of attorney gives the agent authority to act even after the principal becomes incapacitated. All powers of attorney, however, expire at the death of the principal.
If a debtor dies, a creditor cannot sue the debtor's agent under a power of attorney, since the document expired at the principal's death. Instead, he may present a claim against the debtor's estate in probate court.