Powers Of Attorney

Experienced Sonoma Powers of Attorney Lawyer

What Is a Power of Attorney?

Power of attorney is a document which allows you to appoint a person or organization to handle your financial affairs should you become incapacitated and unable to handle your own affairs. A power of attorney can also be used if you plan on being out of the state or country for the next few weeks or months, and are trying to sell a piece of real estate, if you have been diagnosed with a degenerative disease, if you are facing an upcoming surgical procedure, or even if you have no current medical or economic concerns. While virtually any situation can benefit from the power of attorney document, there are different types of powers of attorneys which give varying levels of control to the person named.

Different Types of Powers of Attorney

As noted, not all powers of attorney are created equal, or will equally do a specific “job.” The following are the different types of powers of attorney you could potentially choose from:

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Limitations of Powers of Attorney

There are limitations of powers of attorney, no matter what type is in place. All acts undertaken by the agent must have been granted in the power of attorney. Agents are generally not permitted to be paid for acting as a power of attorney unless the documents specifically allow payment, setting out the amount and rate of the payments. Under a power of attorney, the agent may make gifts or loans of the grantor’s assets if the document specifically allows it. If the document does not specifically address gifts or loans, then this could be possible only in limited circumstances, i.e., such gifts or loans must leave you, the grantor with sufficient assets to meet your needs, and must be consistent with any gifts or loans you might have made while you were able to do so.

The agent for your power of attorney is not allowed to change or cancel any will you currently have in place and is also not allowed to pressure you into doing something you would have been unlikely to do while you were healthy. All powers of attorney terminate upon your death, and agents of a power of attorney are not above the law. Should it be found that an agent wrongfully took money or property under a power of attorney, he or she can be sued and subsequently ordered to return the money or property. Intentional abuse of a power of attorney can even bring criminal charges. So long as you are deemed mentally competent, you have the right to revoke a power of attorney at any time—and should do so if you suspect your named agent is not acting in your best interests.

The Emotional Aspect of Choosing a Power of Attorney

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    How Powers of Attorney Impacts Estate Planning

    Many estate planning attorneys feel a power of attorney is the foundation of any good estate plan. Whether you are just starting in your chosen career or you are preparing for your retirement, it is never too early to consider how you would want your affairs to be managed in the event something were to happen to you, leaving you unable to exercise control over your own finances. Granting power of attorney to a trusted spouse, sibling, adult child, close friend or attorney can give you peace of mind, knowing someone you believe will act in your best interests, will legally have the right to do so. Although having a power of attorney can be one good way to prepare for your future, there are many factors to consider when deciding the type of power of attorney you need, as well as who you will choose as agent.

    Can Powers of Attorney Be Revoked?

    Should you decide to revoke your power of attorney—for any reason you choose—there is a process to be followed in the state of California. While you can certainly end the powers given to an agent by revoking the power of attorney, your estate planning attorney can guide you through the following steps:

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