Roseville, California Powers of Attorney
What Is Financial Power of Attorney in California?
A financial power of attorney (POA) gives someone you name the authority to handle legal or financial matters for you under specific circumstances. When you create a financial POA, you are called the principal, and the person you choose to act for you is called your attorney-in-fact or your agent.
What Type of California Financial Power of Attorney Can You Create?
Based on the matters POA covers, there are two types of POA:
A general POA allocates broad powers to the agent to act on financial, business, real estate, and legal matters. This POA is limited only by the terms set out in the POA or by any relevant state statute.
This is sometimes called a specific POA. This is a very limited POA that gives your agent the authority to take action on your behalf for specific transactions (like buying a house), for certain assets (like a specific account), or for a certain period of time (if you are traveling, staying in the hospital, or going on military duty).
A general or limited POA can be durable, which means it goes into effect immediately when you sign it and remains in effect even if you become incapacitated.
A general or limited POA can be written to take effect only at a particular time or under certain conditions (so it "springs" into action only at that time). For example, you could create it so that it takes effect only if you are incapacitated or so that it is effective for one month.
Why do I need financial power of attorney in California?
Powers of attorney for finance are powerful tools to ensure your finances and other business or personal matters are properly managed while you are incapacitated or otherwise unable to oversee them yourself. Incapacity strikes young and old, rich and poor. An event causing incapacity can strike anytime: a car accident, a collision on the ski hill, a sudden illness, or an industrial injury.
With an effective POA, your agent will step in your shoes to pay bills, make bank deposits, watch over investments, collect insurance or government benefits, and handle other money matters on your behalf. Without this important document, your loved ones will have to petition a court for the appointment of a conservator or guardian in the event you become ill or injured.
Contact an Estate Planning Lawyer in Roseville, California, when You Need a Power of Attorney
However, people often need clarification about when and which type of POA is needed. At LL Law Firm, our estate planning attorney will review your estate and specific concerns and let you know if and which POA is best for you, your unique situation, and your estate plan. You can contact us online or at (916) 619-2349 to schedule an initial free consultation to learn more about how and why a POA can complement your estate plan in Roseville, California.