There are several types of power of attorney. Generally speaking, a power of attorney (POA) grants a designated individual explicit and particular powers over specific aspects of another person’s life.  And you should be sure to include one or more POA directives within your estate plan.

In this blog, I’ll discuss durable financial power of attorney. With a durable financial POA, You designate somebody else to act on your behalf if you become unable to make financial decisions for yourself.  They then have the legal responsibility of acting in your best interests, watching over and protecting your assets.  In the event of your incapacity, this person is entrusted with handling your finances, paying your bills, running your business, even with bringing legal actions on your behalf.

Why is it called durable power of attorney?  Because it endures, or lasts, past the time a person becomes incapacitated.  The designation is essential:  if the POA is not specifically created as “durable,” it can expire when you become unable to manage your affairs…exactly when you need it most.

In California, your durable power of attorney becomes effective as soon as it is signed, witnessed, and notarized.  There is also type of POA called a “springing” durable power of attorney.  It “springs” into effect only after a doctor certifies a person has become incapacitated.

Some other life events and situations may affect the validity of a durable POA:

• You might change your mind, want a new POA, or want to revoke a previous one.
• Divorce, if you previously designated your spouse as your durable financial POA.
• The person you selected is not available.  It’s always a good move to name an alternate in your durable POA papers.

So now you have a lot of information to process, and a lot of serious thinking about whom you trust most to manage your financial affairs…if and when you really needed them, who would step up for you?

Your first, and smartest, decision is to get help from an experienced estate planning attorney to assist you with challenges such as durable power(s) of attorney, your will, advance health care directives, and whatever other aspects of estate planning you need.

Feel free to contact me at 818.956.9200–when you’re ready to put your choices on paper, or if you are just starting to plan for the future.  I’m here to listen, and to help!

Glendale Location

616 E. Glenoaks Boulevard, Suite 203

Glendale, CA 91207

Sherman Oaks Location

15303 Ventura Boulevard, Suite 900

Sherman Oaks, CA 91403