If something happens to you, do you have a plan for who will take over managing your finances on your behalf? Does the person you want to hold this responsibility know about it and feel comfortable handling it? Do you know which tasks you’d like them to handle, or when you’d like this power of attorney document to activate?
It’s important to understand every element of the reasons behind creating a power of attorney as well as the people you appoint in these roles and how you enable them to take action when you are unable to do so.
The principal is the person who creates the power of attorney – in this case, you. This person may choose to select a durable power of attorney, meaning that the authority continues in the event that the principal becomes incapacitated. Without a durable power of attorney, the court may need to appoint a conservator or legal guardian.
An agent is the other important person in a power of attorney relationship. This individual is the person authorized to act on the principals we have in all legal matters permitted by the document or by law.
The principal of the document has the discretion to determine which powers they wish to provide or whether they wish to give broad discretion to the person acting. If they choose to limit it, this is known as a limited POA, which only enables the agent to act on behalf of the principal in specific events or matters such as attending a closing of a real estate matter. To better understand the best ways to set up your own estate plan and how to use a power of attorney document, schedule a consultation with our Pasadena estate planning lawyers.
Our Pasadena lawyers can guide you through the process of setting up your estate plan and discuss the various strategies available to you.
