Do I Need a Durable Financial Power of Attorney?

 Posted on November 07,2022 in Powers of Attorney

A power of attorney (POA) is a document that gives a person the legal authority to make decisions for you. A durable financial power of attorney is an important part of a comprehensive estate plan. With a durable POA in place, you can ensure that someone you trust will be able to manage your finances if you become incapacitated.

What Is a Durable Financial Power of Attorney?

A financial power of attorney gives another person the authority to manage your finances. The person you designate as your agent may have the power to address multiple financial issues, including paying your bills, depositing or withdrawing money from your accounts, and buying or selling property on your behalf. When a POA is "durable," this means that it will remain in effect if you are ever incapacitated, which may include any situations where you cannot make decisions for yourself or express your wishes to others.

Why You Might Need a Durable Financial Power of Attorney

There are any number of reasons why you might need to appoint someone to manage your finances if you cannot do so on your own. Perhaps you are going through cancer treatment and want to be sure your bills are paid on time, including in cases where you may be too ill to handle financial issues. If you are at an advanced age, you may want to make sure your financial affairs will be handled correctly, that your medical care will be paid for, and that your ongoing needs will be met throughout the rest of your lifetime. Whatever the reason, a durable financial POA gives you peace of mind knowing that your finances are in good hands should something happen to you.

A durable financial POA can also provide you and your loved ones with peace of mind that financial issues will be managed correctly in emergency situations. If you are incapacitated, your family members or other loved ones may not be able to access your accounts or make financial decisions on your behalf if they have not been authorized to do so. Creating a durable financial power of attorney now can save you and your loved ones a lot of stress and hassle later on.

How to Create a Durable Financial POA in California

Creating a durable financial power of attorney is relatively simple. You will need to choose an agent—someone you trust implicitly to manage your finances according to your wishes—and then complete and sign the appropriate legal documents. These documents can grant your agent broad powers to manage multiple types of financial issues, such as buying or selling different types of property and financial assets, depositing or withdrawing money in bank accounts, paying court-ordered financial support, managing benefits from Social Security or other government programs, operating and managing a family business, and handling tax issues. However, if you choose, you can limit the powers your agent will have by specifying the types of issues they can or cannot address, and you can also provide details about how you want certain matters to be handled. Once you have created and executed your POA, be sure to keep the originals in a safe place and give copies to your agent and any other relevant parties, such as your spouse or children.

Contact Our Los Angeles Power of Attorney Lawyer

A durable financial power of attorney is an important tool that can help your loved ones manage your finances if you become incapacitated. If you live in California, a durable power of attorney can be a crucial part of your estate plan. Addressing financial matters now can help everyone involved avoid stress and uncertainty down the road. At Law Office of David Schechet, our Los Angeles County estate planning attorney can advise you on the best ways to use powers of attorney, and we will assist you in creating legal documents that will provide you with peace of mind about the future. Call 800-282-4731 to set up your free consultation today.

Sources:

http://file.lacounty.gov/SDSInter/dca/1021444_4.18.17_UniformStatutoryFormPowerofAttorney.pdf

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PROB&division=4.5.&title=&part=2.&chapter=2.&article=