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.