Individuals have the exclusive power to take control over their own financial affairs. This includes the ability to purchase property, sell assets, and perform banking tasks.
However, some situations can arise where a person is either unwilling or unable to maintain their own finances. When this happens, it may be advisable to grant another person power of attorney. This allows the granted party to perform any financial affairs on your behalf. A power of attorney can grant general authority to another or only allow them to have authority for a specific purpose.
A Rosemead power of attorney lawyer could help you through this process if you are trying to give another person the authority to maintain your financial affairs. Our estate planning attorneys could explain how a power of attorney may function in your case and draft the necessary legal documents for this decision to go into full effect.
What is a Power of Attorney?
The ability to control one’s own affairs is central to the law. However, it is possible to grant this ability to another person. The most common way to accomplish this is to create a power of attorney.
Powers of attorney come in two main forms. The first is a general power of attorney. Here, the recipient of the power, or the agent, has total control over the principal’s financial affairs for the foreseeable future. The second is a specific power of attorney. These documents grant power to another person for a specific purpose or for a limited amount of time.
Regardless of the exact purpose of a power of attorney, state law dictates the legal requirements for these decisions. According to California Probate Code § 4121, a proper power of attorney document must contain the date of its execution, the signature of the principal, and a notary’s seal or the signatures of at least two witnesses. A Rosemead attorney could determine which form of powers of attorney may be most beneficial in a particular case.
Purpose of Powers of Attorney
Creating a power of attorney cedes control over a person’s finances and property. While this can be a drastic step that places great faith in the abilities and trust of another, it can serve many useful purposes.
For instance, powers of attorney can be useful as a way to ensure one’s welfare in emergency situations. People suffering from deteriorating health can use these tools to protect their assets if an illness or injury results in incapacitation. Parties holding power of attorney have the authority to take whatever steps are necessary to secure housing and other essentials for the principal. These orders retain their effect until the principal’s death or when the principal rescinds the order in the future.
Of course, specific powers of attorney can be more beneficial options when a person lacks the knowledge or motivation to perform a task on their own. A common example is empowering another party to sell property on one’s behalf. In these situations, a power of attorney must contain language specifically outlining the authority under the document and contain limiting language concerning the role of the grantee. A Rosemead lawyer could help individuals to identify their goals and craft power of attorney documents that meet their specific needs.
Learn More About Powers of Attorney in Rosemead
Powers of attorney are potent legal documents that grant other people control over your property and wellbeing. With the exception of medical decisions, agents have the ability to make choices concerning property, assets, and even housing.
A Rosemead power of attorney lawyer could help you to better understand the concept of these documents and their legal requirements. Our legal team could also identify your needs and take these into account when drafting the power of attorney documents. If you believe this legal power could benefit you, reach out to our firm today.