The Critical Value Of Powers Of Attorney
You most likely have heard the phrase “power of attorney” or POA. You probably have a vague idea of what that means. Typically, people think of POA as someone having the authority or power to write checks in another person’s name, if that person is unable to. While this is true, there is much more to powers of attorney.
Attorney Rod Hatley has extensive knowledge and experience with setting up California powers of attorney. He can guide you through this process and advise you of other types of power of attorney that may be beneficial for you to include in your estate planning documents.
The Four Types Of Powers Of Attorney
General power of attorney. When you (the grantor) authorize someone (the attorney-in-fact) to act as general POA, you are giving them the authority to manage your finances, pay your bills and even open up accounts. This type of POA stops if you become incapacitated, terminate it yourself or die. After your death, the executor of your estate takes over making financial decisions.
Durable power of attorney. This type of POA is the same as the above except that it is durable. This means that when you become incapacitated, the person you designated still can take care of your financial matters.
Special or limited power of attorney. This is the same as general POA but is limited in scope or situational. For example, you may grant your adult child a special POA to sell your San Diego home while you live and work abroad in Portugal.
Springing durable power of attorney. This type of POA becomes effective only in very specific circumstances. Most often a person who is on active military duty will have this type so that when they are deployed someone else can manage their affairs. This type of POA can also become effective when the grantor becomes incapacitated. Generally, two medical doctors will need to agree that the grantor is incapacitated for the POA to become activated.
It is important to update your POA designation should you experience any major life change. Changes that may require a new designation include separation or divorce, a change in relationship, or the death or serious illness of a designated POA.
Get The Seasoned Counsel Your Family Deserves
When it comes to leaving a lasting legacy, turn to a trusted and proven professional. Rod Hatley has been advising clients on the particulars of California estate planning and powers of attorney since 1996. He offers a holistic approach to match your family’s, style, goals and circumstances. Call 858-564-7090 or reach out to Rod at Hatley Law Group APC by sending a website contact email. Based in San Diego, Rod travels throughout California to meet with and provide exceptional, personal service to clients.