A durable power of attorney is a legal document that empowers someone to make financial decisions for another person. The individual who needs help with their finances is called the principal, and the party who agrees to act on their behalf is called the agent.
With these powers, the agent can help the principal pay bills, make investment decisions, or sell assets. The form is called “durable” because the powers granted to the agent do not have to be triggered by any specific circumstance and persist even if the principal becomes incapacitated.
A durable power of attorney can be a helpful document for people who need assistance managing their finances. However, because this is a legally binding agreement, having an experienced lawyer advise you with your durable power of attorney in Orange County is a good idea. Call Amity Law Group today to speak with a skilled POA attorney.
Reasons to Have a Durable Power of Attorney
A durable power of attorney is only necessary for people over 18 who need help managing their financial decisions. The need for this type of help often arises as a person becomes elderly or deals with a significant physical or mental health condition.
However, there are many other circumstances where this arrangement can be useful. For example, a military member serving overseas may need to have a power of attorney so an agent can act on their behalf while deployed or in the event that they become incapacitated.
People who have corporate or government jobs that take them to other countries or families taking extended vacations overseas might also find a power of attorney convenient.
An Orange County lawyer could further explain that a durable power of attorney is used only for financial and business matters. A separate form called a medical power of attorney is required to make medical decisions on another person’s behalf.
Preparing a Durable Power of Attorney
Preparing a durable power of attorney in Orange County involves several considerations.
Choosing an Agent
The first step is for the principal to choose an agent. Because this person will have significant access to the principal’s finances, the agent should be a responsible, trustworthy individual who will be available should the principal need them. Often, the agent will be a family member or trusted friend. However, the principal may also name another person, such as a lawyer or business advisor.
Determining Scope of Authority
Next, the principal must decide on what powers to grant the agent. This is called determining the scope of authority. For example, the form may be limited to the power to pay bills. In other cases, it may allow the agent to buy and sell property, make investment decisions, or help with insurance planning. An attorney could provide valuable advice about what powers to give to the agent and any limitations they advise.
Once these important decisions have been made, a lawyer could help clients correctly complete and execute the form per California law. The principal must sign the document before two adult witnesses who are not the agent or get the form notarized. Notarizing the form is often recommended to help prevent challenges to its validity. After the document is executed, it should be kept in a secure location.
California does not have a state-wide registry for durable powers of attorney, but it is a good idea to provide a copy to relevant parties. This includes the agent, financial institutions involved, like banks or investment firms, and other trusted individuals who might be contacted if the principal becomes incapacitated. The attorney may also keep a copy on file. If the form is ever changed, update all copies and re-send the new version to all relevant parties.
Contact an Orange County Lawyer For Your Durable Power of Attorney
A durable power of attorney can give you peace of mind if you are getting older, facing a significant illness, or traveling frequently. You can rest easier knowing that someone you trust can step in and manage your finances if you ever need help.
With an experienced lawyer’s assistance, you can create a personalized legal document with the proper scope for your needs. Schedule an initial consultation with our reliable legal team today to learn more.