Durable Power of Attorney for Finances in California

What does “Power of Attorney” mean? When you give someone else power of attorney (POA), you give them the right to act in your stead. In other words, they can make decisions and take actions as if they were you, to the limits of the powers you give them in the document that grants them power of attorney.

There are two main types of financial Power of Attorney in California:

• General Power of Attorney
• Limited Power of Attorney which is also known as a Special Power of Attorney

When you give someone a general power of attorney, they can take any legal actions that you could do including buying or selling assets on your behalf, giving away assets or money and even getting married by proxy (which means you become married). 

A limited power of attorney is usually granted for a specific legal action, such as buying a piece of property on your behalf when you are not able to attend the closing.

If you become ill or injured, you may not be capable of managing your own finances. A financial power of attorney allows you to name someone else (known as an “agent”) who can handle financial matters on your behalf, including paying bills, managing bank accounts and investments or collecting insurance payouts. In the absence of a financial power of attorney, your loved ones may need approval from a court before they can take financial actions on your behalf.

A knowledgeable estate planning attorney in Los Angeles can help you draft a valid and enforceable power of attorney that takes effect either as soon as you sign it or after you have become incapacitated and that remains in effect until you no longer need it or until your death.

A durable Power of Attorney in California remains valid if the person granting the other person power of attorney becomes incapacitated or otherwise unable to handle their affairs. A limited or special power of attorney stops being effective if the grantor becomes incapacitated. It is a good idea to name someone you trust as your durable power of attorney to avoid having to go to court to have your affairs managed if you become incapacitated. 

This form of financial power of attorney grants wide powers, but those powers are needed if you are suddenly unable to work or care for yourself. Disability often requires sudden shifts in your residence as well as the way you will use your assets. If the disability will shorten your life, it makes more sense to use the assets to provide care for you than save them for a tomorrow that is no longer likely to arrive.

The individual you designate to have a durable power of attorney over your affairs in the event of your inability to handle your affairs can make these decisions and act on them. 

They can pay your mortgage with your assets while you’re in the hospital so that you have a home to come home to when you’re released. They can provide for your children including their education and childcare. 

In California, a durable power of attorney to handle your finances is a risk management tool that every adult should consider. The decision of who to give this decision-making ability is a big decision but it is one that you are usually in a better position to make than a court. If you do not make the decision in advance, a judge will have to make it on your behalf if you ever need a financial power of attorney to handle your affairs. Let’s talk about your specific case at our office, we provide 100% Free Case Evaluation. Book an appointment at The Legal Reps by contacting us now.

Revoking a power of attorney is easy as long as you have contractual capacity. When you revoke power of attorney, the person is not authorized to act on your behalf in the future, but past acts cannot be changed unless there is fraud or other malfeasance.

Changing power of attorney after you become incapacitated requires the intervention of the court. As part of the cancellation of power of attorney, it is a good idea to contact any businesses that know the person had a power of attorney if the POA was active. For example, if you were temporarily incapacitated, your bank has probably obtained documentation demonstrating the person was your authorized attorney in fact and you will want to let them know that you’re once again in charge of your own affairs.