We hear a version of this story at Tenina Law more than we’d like. Someone’s parent has a stroke, and the adult child suddenly can’t get into the bank account to pay the mortgage. There’s no paperwork in place, so they end up in court asking for a conservatorship. It can take months.
Then a friend hears about it and calls us that night. “I don’t want that to happen to my family. What do I need?”
Usually, the short answer is a durable power of attorney. California law gives you a way to choose, ahead of time, who can act for you on money matters if you can’t. Here’s how we walk people through setting one up, and the choices you’ll make along the way.
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Key Takeaways
- Make sure it’s durable, so it still works if you can’t make decisions.
- A power of attorney California residents sign has to be notarized or signed in front of two qualified witnesses.
- Medical decisions usually go in a separate advance health care directive.
- Get copies to the banks and offices that will actually use it.
What a Power of Attorney Is
A power of attorney is a legal document where one person, the principal, gives another person, the agent, authority to act on their behalf.
Make Sure It’s Durable
This is the most important word in the whole document.
A durable power of attorney stays in effect if you later lose capacity, say after a stroke or with dementia. Under the California Probate Code, a power of attorney is durable only if it says so.
A non-durable one ends exactly when your family would need it most. So we always check that word.
Immediate or Springing?
You also decide when it takes effect.
An immediate power of attorney works the day you sign it.
A springing one kicks in only when a triggering event happens, usually a doctor’s written finding that you can’t manage your affairs.
Springing sounds appealing, since you keep full control until then. But it can cause delays, because banks may want proof that the trigger really happened. Many of our clients who trust their agent choose immediate so there’s no gap. It’s a personal call, and we’ll talk it through with you.
Who Should Be Your Agent?
Pick someone you trust with your money and your paperwork. Often that’s an adult child who already helps with appointments and bills.
Then name a backup. A successor agent can step in if your first choice can’t serve. It’s a small step that heads off a big problem later.
What Powers to Include
A power of attorney California residents sign can be broad or narrow.
Common powers include banking, paying bills, managing investments, handling Social Security and Medicare paperwork, dealing with taxes and managing a house.
You can add limits, too. For example, some clients say their agent can’t sell the house without written agreement from a sibling.
Gifting deserves special care. Can your agent make gifts, including to themselves? Gifting powers are a common source of family conflict, so we like to spell out clear limits in writing.
In a Hurry? Dial 213-596-0265 now!
Health Care Is a Separate Document
In California, medical decisions are usually handled through an advance health care directive. It can name a health care agent and record your wishes about treatment.
Most clients sign one at the same time as their power of attorney.
Signing Has Formal Rules
A California durable power of attorney has to be signed and either notarized or signed in front of two qualified adult witnesses.
If you’re in a skilled nursing facility, extra witnessing rules apply.
The Step People Skip
Get copies to the places that will actually use it. Bring them to your bank and your investment firm while you’re healthy.
Some institutions have their own forms or review processes, and they can take a while to accept an outside document. Handling this early avoids a scramble later.
Your Agent’s Duties
An agent is a fiduciary. That means acting in your best interest, keeping your money separate from their own, keeping records and following your instructions.
We like to explain this directly to the agent, too. Most agents mean well. Problems usually come from loose record keeping, not bad intentions. A simple spreadsheet of every payment goes a long way.
Can You Change Your Mind?
Yes. As long as you have capacity, you can revoke the document or replace it. Tell your agent in writing and let the bank know.
A power of attorney also ends when the principal dies. At that point, your will or trust takes over.
What It Looks Like When It Works
Picture a parent who has a fall and spends six weeks in a rehab center. The agent pays the mortgage, utilities and insurance premiums, and keeps a record of every payment.
No court. No delay. That’s the whole point.
Questions We Get a Lot
Should you also have a living trust? Often, yes. A trust can manage assets and avoid probate, and the power of attorney covers anything outside the trust.
Can you just use a free online form? California has a statutory form, but it may not fit your situation, especially around gifting, real estate or business interests.
A power of attorney California families set up ahead of time is a few pages, a notary and a conversation. It can save months of court time and a lot of stress.
Tenina Law in Sherman Oaks helps families across Los Angeles with estate planning, including durable powers of attorney, advance health care directives, wills and trusts. Attorney Alla Tenina is licensed in California and has more than 20 years of experience. You can read more in our guide to California estate planning.
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Talk to Tenina Law
Call (213) 596-0265 to set up a power of attorney or review your estate plan. Our office is at 15250 Ventura Blvd, Suite 1200, Sherman Oaks.
In a Hurry? Dial 213-596-0265 now!
Frequently Asked Questions
Q: Does a California power of attorney need to be notarized?
A: A durable power of attorney must be either notarized or signed in front of two qualified witnesses.
Q: Does a power of attorney cover health care decisions?
A: Usually not. California uses a separate advance health care directive for medical decisions.
This article is general information about California law and is not legal advice. Reading it does not create an attorney-client relationship. Every case is different, and prior results do not guarantee a similar outcome. Attorney advertising.
