A power of attorney is one of the most important documents in a California estate plan, and one of the most misunderstood. It authorizes someone you trust, known as your agent, to make decisions and take action on your behalf when you cannot do so yourself.
At the Law Office of Catherine Chukwueke, I help California clients understand their options and put the right type of power of attorney in place for their situation. Call me at 310-213-7711 or schedule a consultation online.
What Is a Power of Attorney?
A power of attorney is a legal document in which one person, the principal, grants another person, the agent, the authority to act on their behalf. Depending on the type, a POA can cover financial decisions, medical decisions, or both. It can be broad or limited to a specific purpose.
POAs are a common and essential part of estate planning, particularly for managing what happens if you become incapacitated and can no longer manage your own affairs.
Types of Powers of Attorney in California
Durable POA. Takes effect immediately upon signing and remains in effect even if you become incapacitated. It terminates only upon your death or if you formally revoke it. This is the most commonly used type in estate planning.
Non-Durable POA. Also takes effect upon signing but terminates if you become incapacitated. This type is typically used for a specific transaction rather than long-term planning.
Medical POA. Also called a healthcare POA or advance directive, this document authorizes your agent to make medical decisions on your behalf when you cannot. It works alongside your advance health care directive and living will.
General POA. Grants broad authority to your agent to handle financial, business, real estate, and legal matters. It is limited only by its own terms and applicable California law.
Limited (Special) POA. Authorizes your agent to act for a specific purpose only. Once that purpose is accomplished, the POA expires.
Springing POA. Takes effect only when a specific event occurs, such as a diagnosis of incapacity, as defined in the document. It ends at a specified time or upon your death.
When Do You Need a Power of Attorney?
A POA is worth having at any stage of life, but it becomes especially important if you are facing a worsening medical condition that may affect your mental capacity, if you are undergoing a procedure or treatment that may leave you temporarily incapacitated, or if you simply want to designate someone to handle specific matters on your behalf.
Without a durable POA in place, your family may have to go to court to obtain conservatorship in order to manage your affairs if you become incapacitated. That process is expensive, time-consuming, and public.
Challenges to a Power of Attorney
A POA can be challenged on several grounds, including that the principal lacked mental capacity at the time of signing, that proper formalities were not followed, or that the agent abused their authority. Having an attorney draft your POA correctly from the start is one of the best ways to reduce the risk of a future dispute.
Have Questions?
I work with clients throughout California. Call me at 310-213-7711 or schedule a consultation online to discuss which type of power of attorney belongs in your estate plan.
