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There are a variety of cases in which a DPOA may be necessary. Consider these examples. (1) If you and your spouse own any real property together you probably own it as tenants by the entirety. If so, neither of you may sell, mortgage or otherwise affect legal title without the consent of the other. If one of you becomes incapacitated and the other needs to sell the property or refinance, the healthy spouse will have to seek an order of guardianship from the court before conducting the transaction. (2) Some individuals create a joint bank account in place of signing a DPOA; this can cause more problems than it avoids.
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In many situations lifetime gifts represent a valuable asset-protection and estate-planning technique. The existence of a valid, well-drafted DPOA that includes an appropriate authority to make gifts may facilitate the implementation of the plan. The law in New Jersey is clear: an agent under a DPOA that does not specifically grant the authority to make gifts legally may not make gifts.
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