Matters get even more complicated with other kinds of joint tenancy property. Real estate is a good example. If one owner becomes incapacitated, the other has no legal authority to sell or refinance the incapacitated owner's share. By contrast, with a durable power of attorney, you can give your agent authority over your share of joint tenancy property, including real estate and bank accounts.

When You Shouldn't Rely on a Durable Power of Attorney

The expense and intrusion of a conservatorship or guardianship are rarely desirable. In a few situations, however, special concerns justify the process.

You Want Court Supervision of Your Finances

If you can't think of someone you trust enough to appoint as your agent, with broad authority over your property and finances, don't create a durable power of attorney. A conservatorship or guardianship, with the built-in safeguard of court supervision, may be worth the extra cost and trouble.

You Fear Family Fights

A durable power of attorney is a readily accepted and powerful legal document. Once you've finalized yours, anyone who wants to challenge your plans for financial management will face an uphill battle in court. But if you expect that family members will challenge your document or make continual trouble for your agent, a conservatorship or guardianship may be preferable. Your relatives may still fight, but at least the court will be there to keep an eye on your welfare and your property.

For more information on powers of attorney for finances, see How Financial Powers of Attorney Work.