If you are thinking about naming someone your attorney-in-fact or if someone is considering appointing you to this position, you should first consider what power of attorney actually is. Power of attorney is a legal document which ensures that the many practical financial things will get done even when the person is not able to deal with them, usually due to an incapacity.

Usually, the elderly most commonly execute a power of attorney document, but everyone over the age of eighteen (18) should execute this document. Besides the elderly, military personnel and other professionals who have a job that directly risks their life and welfare should name someone as their attorney-in-fact so that their affairs can be taken care of even if they should become incapacitated or if they are deployed oversees.

People who travel a lot, even if they are as young as 20, should get an attorney-in-fact to act in their name when they are away to handle things like bank transfers, property repairs and investments.

It is most common that people get a power of attorney for finances and healthcare directives. Durable power of attorney for finances can save a considerable amount of money, time and nerves in the event that the principal becomes incapacitated, as this document avoids the necessity of a conservatorship court proceeding.

Let’s take an example. Greg and Linda are an elderly couple who have been married for 36 years. They are retired now, but Greg is a small-scale investor and has some stocks in his name. One day Greg has a stroke and his mental capacities get severely impaired. He needs ongoing medical care and Linda has to find a way to pay for the mounting medical bills. However, she cannot touch the stocks, because she doesn’t have the power to do so and Greg, being incapacitated, cannot confer such powers on her. Had Greg executed a power of attorney, naming Linda as his attorney-in-fact, she would have been able to have access to the stocks held in Greg’s name to pay off the mounting medical bills and other expenses associated with Greg’s well-being.

If you are not sure whether you need a power of attorney for finances or medical purposes, call us at 858-208-8900 for a free 30-minute consultation and we’ll be happy to answer all your questions.

Step 1 – Decide who the agent will be

Your agent can be your spouse, adult child, relative, friend – pretty much any adult. However, just because you can choose anyone, it doesn’t mean you should do so. Most importantly, the most crucial consideration is that it should be someone you trust and someone who understands your financial situation.

Bear in mind that your agent has the power to make important decisions for you for a potentially long period. Besides being able to trust them, consider their age, health, location, and whether this  individual will ultimately have your best interest in mind. If they are too old or live too far away, it may be difficult for them to perform in your name. You’d also want someone who would be making decisions similar to yours at times when you aren’t able to.

You should also name a substitute in your power of attorney document in the case that your agent should fall ill or pass away.

Step 2 – Write it down

You have two options when drafting a power of attorney for finances document. You can get a template from the Internet and just fill in the blanks. However, since power of attorney is a document that can impact your life and the lives of your loved ones in many ways, we advise you draft your financial POA with an estate attorney.

An attorney can draw up a financial power of attorney specifically tailored to meet your particular circumstances and needs. There are many provisions that should be carefully worded so as to preclude any potential abuse or challenging.

The document should list all the powers that you confer on your agent and also – the powers that are not conferred. Some of the things you can enable your agent to do for you are transactions regarding your stocks, real estate, tangible personal property, banking, commodity and insurance. You can also enable your agent to do only one transaction or one type of transaction in your name (this is known as limited POA).

The powers are flexible with regard to when they come into effect. The conventional power of attorney will come into effect at once but it will be canceled when the principal becomes incapacitated. The durable power of attorney will come into effect at once, but it will last for a lifetime, even if the principal becomes incapacitated. A springing POA will come into effect when a certain condition is fulfilled, such as incapacitation.

As you see, many details have to be stated, so the safest route when you don’t know how to get financial power of attorney in California is to have an experienced attorney draw the document up. The Law Offices of Irina Sherbak offers you premium expertise and a broad experience in these matters, so feel free to contact us if you would like professional support.

Step 3 – Date it and sign it

The document should be dated and signed before a notary public and then delivered to all the institutions that should know that your agent is allowed to act in your name.

Note that the principal, the person who wants to appoint the attorney-in-fact, needs to be able to make legal decisions, i.e. the power of attorney for finances cannot be signed by a person who is already mentally incapacitated.