What Key Factors Should You Consider When Appointing a Power of Attorney?

What Is a Power of Attorney, and Why Do I Need One?

As you enter your thirties or forties, you see that anyone’s life, young or old, can change quickly. Let’s say you’re a young father and get into a car accident on the way to work; you now could be unable to handle your affairs.

This is why setting up a power of attorney so a trusted friend, relative, or professional can make these decisions for you is wise, prudent, and smart.

Any power of attorney (or POA) gives one or more trusted individuals the power to act on your behalf as your attorney-in-fact when you can’t do so; for example, during an illness, accident, or mental trauma.

There are specific powers of attorney, and some only authorize limited powers, but others can cover a wide range of issues, such as financial matters, health decisions, real estate transactions, and more.

For example, let’s say you cannot manage your financial affairs; a financial power of attorney can appoint someone to manage these matters and ensure they’re handled following your precise wishes, plans, and goals.

However, there are limitations, and if you are killed, your power of attorney will no longer remain valid or legally binding. Upon your death, other legal issues will arise, and usually, a trustee or executor of your will now execute all aspects of the estate plans you previously created.

By consulting with a skilled, experienced power of attorney lawyer, you can explain all the details of your unique situation, and your lawyer will provide all the legal options that a professionally drafted, detailed power of attorney may offer to resolve your concerns and put your mind at ease.

If I Set Up a Power of Attorney, What Vital Factors Must I Consider?

Of course, the first thing to do is to obtain a thorough consultation with a qualified and knowledgeable power of attorney law team. Your meticulous and empathetic law team will help you determine precisely what you wish to accomplish with your POA and also provide the best type that suits your unique needs.

That said, one of the most critical decisions you must make is who will be assigned the responsibilities of being your attorney-in-fact; this job can be stressful and time-consuming and is not a good fit for everyone.

Then, before you decide who will manage your affairs, discuss this duty thoroughly with them and ensure they are able and willing to do the job.

Most relatives, etc., you speak to may wish to help but might be the wrong person to manage your affairs for the following common reasons;

• They are too busy to do the job – Most people have lots to do today, and taking on the additional tasks involved in adequately managing their affairs could be overwhelming.
• They are willing but unable to do the job—Being placed in this position, they must be experts at paying attention to details. If they are unhealthy or disorganized, they probably will not do an excellent job of managing your money, assets, etc.
• They are indifferent or don’t care – Managing your affairs is serious, and if your attorney-in-fact doesn’t care enough, they’re unlikely to notice poor care, abuse, financial issues, etc.

These are only a few reasons that choosing the right attorney is critical to this vital process.

Also, it is wise to have a backup agent if your primary agent becomes unavailable. Once a well-drafted and detailed POA is in place, how well it’s implemented becomes the most critical factor. This is why you may consider using your estate planning lawyer as your “attorney, in fact;” as a professional, they’ll know what must be done and ensure all your directives are carried out according to your precise specifications.

In California, What Are Some Of the Requirements For a POA?

Every state has different legal rules to draft and legally enforce your POA. So, to create a legally valid power of attorney in California, the document must meet some basic requirements, such as;

• You, as the principal, must be at least 18 years old.
• You must hold the mental capacity to fully understand your POA and its legal consequences and ramifications.
• Your agent, who will manage your POA, must also be 18 years old and have the mental capacity to understand and manage the duties demanded by the POA.
• Your POA must be appropriately executed, such as needing to be signed by a notary public, and usually have two competent witnesses
• If your POA contains real estate transactions that must be done, it must be notarized and possibly have other legal stipulations.
• If you are in a nursing home and have a medical POA, it needs to be witnessed by an ombudsman (or patient advocate) in addition to the notary and other directives.

Each POA differs, and so may the rules and legal requirements it must have; this is the most significant reason to have the guidance of a skilled and professional California power of attorney law team.

Are There Various Types of POAs, and How Do I Know Which to Use?

This is another vital factor you must get right so the POA you draft does exactly what you want it to do. For this reason, there are various options for a California power of attorney, such as;

• An advance health care directive – This is usually a classic medical POA that allows your agent to manage health care decisions on your behalf and a living will that outlines your wishes and preferences regarding medical treatment.
• A durable POA – This is one of the most valuable powers of attorney, as it remains effective even if you (as the principal) are incapacitated and unable to make your own decisions. However, it also must include specific legal terminology to be effective.
• Limited POA – This standard financial power of attorney gives your agent authority over particular duties for a limited time.
• General POA – Usually a financial power of attorney that allows your agent broad authority in managing your financial and business affairs.

Once again, every situation and the POA that must be used to manage it correctly differs. Therefore, the professional advice and guidance of an empathetic and thorough power of attorney lawyer is mandatory.

I Need Advice on Drafting a Power of Attorney; How Should I Proceed?

A power of attorney is a powerful and highly effective legal tool as long as it’s drafted to your precise specifications, allowing it to solve the issues you address and nothing more.

It also must be in place before you lose your ability to think or function adequately to manage your affairs. It also requires a person or professional you trust who will faithfully and dutifully carry out their responsibilities on your behalf.

The law firm of Cava & Faulkner has a long, successful, and empathetic history of drafting and creating powers of attorney that meet your specific needs and ensure that all your precise wishes are carried out. Call them today at 916-831-7565 for a free consultation on your particular needs and concerns. They will use their substantial knowledge of California POAs to make sure your family and affairs are cared for if you become incapacitated.