Should you have a durable power of attorney prepared for you by a Long Beach estate planning lawyer at Barilari & Williams? The answer is probably yes.
A durable power of attorney is a binding document that empowers someone you trust to oversee your financial affairs and make financial decisions for you if you are unable to manage those affairs and make those decisions yourself.
When you set up a durable power of attorney, you are called the “principal,” and the individual you select to act on your behalf is called your “attorney-in-fact” or your “agent.”
What Else Should You Know About a Durable Power of Attorney?
When you prepare a durable power of attorney, you’re authorizing another person to manage your financial affairs. That’s a big responsibility, so you must select someone you trust with your life – because that’s essentially what you will be doing.
In California, you can prepare a financial power of attorney so that it goes into effect the moment you’ve signed it, but you must specify that you want your power of attorney to be “durable,” or the document will not be in effect when you become incapacitated.
You may also specify that your power of attorney does not take effect until a doctor confirms that you are incapacitated. This creates a “springing” durable power of attorney. Every adult age 18 or older in California can and should consider creating a durable power of attorney.
What Authority Does Your Durable Power of Attorney Give to Your Agent?
If you cannot make financial choices and decisions that must be made for your family or for yourself, a durable power of attorney authorizes your attorney-in-fact to make those decisions to safeguard you, your loved ones, and your best long-term interests.
Your attorney-in-fact may conduct your banking transactions, pay your pending bills, sell particular assets to pay your health care expenses, conduct real estate transactions, and deal with your taxes and retirement accounts.
Your durable power of attorney lets your agent conduct your affairs if you’re incapacitated or disabled. Without your durable power of attorney, your family may have to petition a court and have a conservator or a guardian named – even to cash a small check made out to you.
When Is Your Durable Power of Attorney Void?
A durable power of attorney becomes void at the time of your death. Your durable power of attorney also becomes void if:
- You revoke it.
- You get a divorce.
- A court declares the document invalid.
- The agent you designated is unavailable.
If you divorce, remarry, move out of state, or experience some other significant change in your life, you should review your durable power of attorney with a lawyer’s guidance to make any necessary revisions.
What Else Should You Know About a Durable Power of Attorney?
Before you have a durable power of attorney prepared, decide exactly what authority your agent should and should not have. If you aren’t sure, an attorney at Barilari & Williams will help you thoughtfully consider your options.
With offices in Pasadena and Long Beach, Barilari & Williams can prepare a durable power of attorney that expresses your wishes precisely and clearly. We have more than a decade of combined experience serving our clients in Southern California.
There is no cost for your first consultation with an attorney at Barilari & Williams. If you need to create a durable power of attorney – or if you would simply like to learn more – call us now at 888-EST-PLAN to schedule that first consultation.
