Only about 60% of adults have a power of attorney in place. Below Gallinger Law will explain what a power of attorney is and the role it plays in effective estate planning.
What Is A Power Of Attorney?
Power of attorney is an essential part of life planning. All states accept power of attorney, but rules and requirements vary from state to state. A power of attorney authorizes one or more people to act on your behalf as your agent. Permissions may be limited to specific activities, such as completing the sale of your home, or their general application. A power of attorney can give you temporary or permanent authority to act on your behalf. A power of attorney may be effective immediately or only in the event of a future event, usually a determination that you cannot act on your own due to a mental or physical disability. A power of attorney can be revoked, but most states require written notice of revocation to be given to the nominee acting on your behalf.
Why Would Someone Give Another Such Broad Power?
A power of attorney provides convenience to some people. You can use a power of attorney if you are buying or selling property and don’t want to be there in person to complete the transaction. Another important reason to use a power of attorney is to prepare for situations where you may not be able to act on your behalf due to incapacity. This disability may be temporary, for example, due to travel, accident, or illness, or it may be permanent. If you do not have a power of attorney and are unable to manage your personal or business affairs, the court may need to appoint someone or more people to act on your behalf. A power of attorney allows you to choose who should act for you and defines his or her powers and their limits, if any.
Who Should Be Your Agent?
The person named in the power of attorney to act on your behalf is often referred to as your “authorized agent” or “authorized agent.” With a valid power of attorney, your representative can take any action permitted in the document. Usually, your attorney will need to present actual documents to execute the power of attorney. You may wish to choose a family member to act on your behalf. Many people name their spouse or one or more children this. If you designate more than one person at a time as a representative, be aware that not all of them may be able to act when necessary, or they may not agree. The joint agent designation should indicate whether you expect the majority to act without their full availability and consent. Whether or not you appoint a joint agent, you should always want to consider appointing one or more successor agents to avoid the possibility of your appointed agent being unavailable or incapacitated at a particular time. No special qualifications are required to act as an authorized representative unless the person must not be a minor or otherwise have no legal capacity. Your best bet is someone you trust. Integrity, not financial acumen, is often the most important quality in a potential agent.
A power of attorney is a complex but important legal document that allows you to keep control of your life. It prevents the state of California from deciding who acts on your behalf. If you are considering services near Los Angeles County, the Inland Empire, and Orange County consider Gallinger Law. We have over 20 years of experience with estate planning, business law, nonprofit applications, and immigration services. Call 888-255-9147 to speak with one of our attorneys.