Real World Solutions Tailored To Your Needs

Why it’s important to have powers of attorney

On Behalf of | Sep 9, 2022 | Estate Planning |

Many important decisions need to be made during one’s lifetime, including who you want to make decisions for if you can’t make them yourself. 

This is why it’s crucial to name a power of attorney. A POA is someone who has the legal authority to make arrangements on your behalf if you are unable to do so.

What are the different types of powers of attorney?

A power of attorney is a legal document that gives someone else the authority to act on your behalf. In California, the three most common types of powers of attorney are: 

  • Limited power of attorney allows the agent to act on behalf of the principal only in specific situations, such as when the principal is out of the country or unable to make financial decisions.
  • A general power of attorney is more open-ended, giving the agent authority to act on behalf of the principal in any situation.
  • A durable power of attorney remains in effect even if the principal becomes incapacitated.

California also recognizes a healthcare power of attorney, which gives someone the authority to make medical decisions on your behalf if you can not do so.

The ideal candidate should be someone you trust implicitly, as they will make decisions that could significantly impact your life. They should also be familiar with your financial situation and be able to handle complex paperwork. Above all, they should be willing to act in your best interests.

A power of attorney can be a complex legal document, and it is crucial to ensure that it is drawn up correctly. Be sure the person you choose understands both the weight of this responsibility and your expectations. When setting up a power of attorney, legal guidance will ensure that any problems are resolved quickly and efficiently.