One of the main reasons some people have a power of attorney is to have someone to handle their affairs in case a stroke or other medical event prevents them from doing so. It protects against unauthorized use of a power of attorney by an agent taking advantage of an incapacitated principal. Unless the principal chooses to make a power of attorney durable, the authority granted to an agent ends in the event of incompetency or incapacitation of the principal. The rules for durable powers of attorney are in the next section. Just as with a general power of attorney, a limited power of attorney may be made durable to survive in the event you become incapacitated. You could also grant the agent access to your bank account with a limitation that access is only to deposit funds and not write checks or make withdrawals. A limited power of attorney lets you specify the areas of your life to which the agent has access.įor example, instead of granting your agent authority to handle real estate transactions on your behalf, you can limit it to a specific property. If the thought of granting your agent authority to handle a broad range of tasks makes you feel uneasy, the solution may be a limited power of attorney. More about the language for a durable power of attorney a little later in this article. In order for the authority to continue, there must be specific language in the power of attorney making clearly designating it as a durable power of attorney. Keep in mind that authority granted by a general power of attorney ceases to exist in the event the principal becomes incapacitated. It may also be the power of attorney to use if want to have someone to take over and handle everything should you be unable to do so because of physical impairments that limit your ability to do so. For example, if your plan is for your agent to take over most of the tasks that you currently perform, then a general power of attorney may offer an appropriate option for you. Whether you use a general power of attorney depends upon how much you intend to rely upon your agent. One notable exception to this is that agents cannot gift money or property belonging to the principal to themselves. Essentially, the agent has the same authority as you have to make decisions, handle your financial affairs and manage your assets. General power of attorneyĪ general power of attorney grants broad powers to an agent. The differences will be discussed later in this article. However, do not confuse the three types of powers of attorney delegating authority to handle matters related to finances and business with the medical power of attorney. The three most common types of powers of attorney that delegate authority to an agent to handle your financial affairs are the following:Ĭalifornia also recognizes authority granted to an agent through a medical power of attorney for health care. What are the different types of powers of attorney in California? The alternate steps in when the primary agent is unavailable, unable or unwilling to handle the assigned responsibilities. For example, a person with more than one adult child may appoint two or more of them to act together, or one person can be appointed as an agent with another person appointed as an alternate.
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