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Welcome to Cheri's Notaries, your go-to source for understanding the ins and outs of Power of Attorney in California.
In essence, a power of attorney agreement is your tool when you require a trusted third party to officially execute specific tasks on your behalf. Whether for estate planning or other purposes, this document provides written directives outlining duties and the expiration of authorization.
Types of POA:
Types of POA:
The type of transaction determines the POA form needed. The General Power of Attorney grants broad privileges, allowing agents to perform a wide range of actions. Conversely, the Limited (Special) Power of Attorney imposes limits on certain duties and privileges that cease once completed.
In every POA, five key individuals play roles:
The Principal creates the document.
The Agent carries out duties on behalf of the Principal.
A notary public attests to the accuracy of the data, and the document is signed with two unrelated witnesses to the Principal.
The notary signs the document and attaches the notary seal. The Agent, at least 18 years old, is chosen based on trust, given the sensitive nature of the entrusted information.
Commonly used, the Limited Power of Attorney form grants specific privileges to the Agent until tasks are completed.
General POA: Please note you MUST Strike through "This power of attorney will continue to be effective even though I become incapacitated" on the form IF YOU DO NOT WANT THIS POWER OF ATTORNEY TO CONTINUE IF YOU BECOME INCAPACITATED.
General POA: Please note you MUST Strike through "This power of attorney will continue to be effective even though I become incapacitated" on the form IF YOU DO NOT WANT THIS POWER OF ATTORNEY TO CONTINUE IF YOU BECOME INCAPACITATED.
A general power of attorney lets you choose an agent (a person you trust) to handle your finances and property while you are capable and coherent.
General vs. Durable: A standard general power of attorney ends automatically if you become mentally or physically incapacitated. If you want your agent to keep helping you if you become disabled, you must use a durable power of attorney instead.
Limitations: This form does not give anyone the power to make medical or healthcare decisions for you
Key Features
Broad Authority: The agent can manage bank accounts, pay bills, file taxes, sign contracts, and buy or sell property.
Temporary Nature: A standard general power of attorney usually ends if the principal becomes mentally incapacitated, revokes it, or passes away. (To keep authority active during incapacitation, a durable power of attorney is required).
Fiduciary Duty: The agent must act in the best financial and legal interest of the principal at all times
Similar to General POA, but the Agent's responsibility ends only upon the Principal's passing or revocation of the document.
Overview of California Durable Power of Attorney
Definition: A legal document that lets you (the "principal") choose someone else (the "agent" or "attorney-in-fact") to manage your money, property, and financial affairs.
Durable Feature: The power remains active and valid even if you become disabled, incompetent, or mentally incapacitated.
Limitations: This financial form does not give anyone the power to make medical or healthcare decisions for you.
Requirements for Validity in California
Signing Rules: The document must be signed by you and validated either by a notary public or signed by at least two adult witnesses.
Real Estate: If the agent will handle real property or real estate transactions, notarization is strongly recommended so the document can be recorded with the county.
Agent Duties: Your agent must act in your best interest, but has no legal duty to act unless stated otherwise in a written agreement
THIS POWER OF ATTORNEY BECOMES EFFECTIVE ONLY UPON MY DISABILITY OR INCAPACITY. I shall be considered disabled or incapacitated for purposes of this power of attorney if a physician certifies in writing at a date later than the date this power of attorney is executed that, based on the physician's medical examination of me, I am mentally incapable of managing my financial affairs. I authorize the physician who examines me for this purpose to disclose my physical or mental condition to another person for purposes of this power of attorney. A third party who accepts this power of attorney is fully protected from any action taken under this power of attorney that is based on the determination made by a physician of my disability or incapacity.
Also known as an Advance Healthcare Directive, this form empowers agents to communicate with healthcare providers and make medical decisions based on the Principal's instructions.
A Principal can revoke POA privileges using the Revocation of Powers form, which, if needed in court, should be filed accordingly.
DIY POA Forms:
While legal assistance is not mandatory, it can be beneficial. Office supply stores and online platforms offer formatted POA forms. Writing your own is acceptable but having a lawyer review it ensures legal accuracy.
Considering the Agent:
Be cautious of potential power of attorney abuse. California has protective measures against fraudulent actions. Guidelines for choosing an Agent include considering professionals like accountants, lawyers, or family members, and being cautious of titles like asset managers or investment advisers.
In conclusion, your POA should be specific, restrictive, and reviewed by a lawyer before signing.
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