When Should I Use a Power of Attorney?

A power of attorney (POA) is a legal document that grants a designated person the power to act on your behalf in legal, financial, and other matters. In California, there are several situations where you may want to use a POA to ensure that your affairs are managed in the event that you become incapacitated or unable to manage them yourself. Here are some examples:

  • Managing your finances: If you are unable to manage your finances due to physical or mental incapacity, a POA can be used to appoint someone to manage your financial affairs. This can include paying bills, managing investments, and handling real estate transactions.
  • Making healthcare decisions: A POA for healthcare, also known as an advance healthcare directive, allows you to appoint someone to make medical decisions on your behalf if you become unable to make them yourself. This can include decisions about life support, end-of-life care, and other medical treatments.
  • Real estate transactions: If you are unable to sign documents related to a real estate transaction, such as buying or selling a property, a POA can be used to appoint someone to sign on your behalf.
  • Business matters: If you own a business, a POA can be used to appoint someone to act on your behalf in business matters. This can include signing contracts, managing finances, and making important decisions.
  • Traveling abroad: If you are planning to travel abroad and will be unable to manage your affairs while you are away, a POA can be used to appoint someone to manage your finances and make decisions on your behalf while you are gone.

It’s important to note that a POA is a powerful legal document that grants significant authority to the person you appoint as your agent. Therefore, it’s important to carefully consider who you choose as your agent and to make sure that you trust them to act in your best interests. You should also consider working with an experienced estate planning attorney to ensure that your POA is properly drafted and executed in accordance with California law.

In addition, it’s important to keep in mind that a POA is only effective while you are alive and able to revoke it. Once you pass away, your POA is no longer effective and your estate will be distributed according to your trust, will or California intestacy laws if you do not have a trust and/or will.

Overall, a power of attorney can be a valuable tool for managing your affairs and ensuring that your wishes are carried out in the event that you become incapacitated. If you have questions about whether a POA is right for you, or how to properly execute a POA in California, you should consult with an experienced estate planning attorney. 

At Central Coast Estate Planning, we offer 100% completely FREE, completely confidential phone consultations.  You can book online and talk to an award-winning attorney usually in about 48 hours.  What are you waiting for?  Book your free consultation today.