Why Does a Durable Power of Attorney Matter?

When planning for the future, one of the most important documents you can have—besides a will or trust—is a power of attorney. It’s not the most glamorous part of estate planning, but it’s one of the most practical. If something unexpected happens and you’re unable to manage your finances or make medical decisions, having a power of attorney ensures that someone you trust can legally step in and act on your behalf. 

In California, the statutory power of attorney form—outlined in the Probate Code—provides a standardized, legally recognized way to authorize someone to act on your behalf.

At Best Coast Estate Law, P.C., our Los Angeles estate attorney often gets asked: “What exactly is a power of attorney, and why do I need one?”

We’re going to break it down. 

What is a Power of Attorney? 

A power of attorney (POA) is a legal document that gives another person—usually called your “agent” or “attorney-in-fact”—the legal authority to act on your behalf. You can grant powers that are broad or limited, depending what attorney powers are most needed. 

For instance, a power of attorney is often used to grant financial power and deal with financial institutions that continue seamlessly if you become incapacitated.

There are several types of powers of attorney, and they each serve a different purpose:

1. General Power of Attorney – This gives your agent wide-ranging authority to manage your legal and financial affairs. It ends if you become incapacitated.
2. Durable Power of Attorney – Similar to a general power of attorney, but it stays in effect even if you become mentally or physically unable to make decisions for yourself. This is usually the most common type used in estate planning.
3. Limited (or Special) Power of Attorney – This type is often used for real estate transactions, such as authorizing someone to sell or refinance a property while you’re unavailable.
4. Medical Power of Attorney – Also known in California as an Advance Health Care Directive, it allows someone to step in and make decisions about your own medical care when you’re unable to do so. 

Why You Need a Durable Power of Attorney for Financial Matters and Financial Institutions in California

California law provides for powers of attorney under the California Probate Code, and while it’s not required, it’s strongly recommended by Los Angeles estate attorneys. If you become mentally incapacitated and haven’t named someone to act on your behalf, your loved ones may have to go to court to establish a conservatorship—which is time-consuming, expensive, and emotionally draining. A durable power gives your agent the legal authority to continue acting for you, even when you can’t speak or act for yourself.

Powers of attorney in California are governed by the Uniform Statutory Form Power of Attorney Act, commonly referred to as the Attorney Act, which outlines what powers can be granted and how they must be documented.

By creating a power of attorney ahead of time, you’re making a proactive choice to protect yourself and your family. It’s peace of mind knowing that someone you trust can take care of things like paying bills, managing bank accounts, signing legal documents, or talking with doctors.

Who Should You Name as Your Power of Attorney? 

Your attorney-in-fact (your agent) should be someone you trust implicitly with important private affairs like family matters, bank accounts, and health care — often a spouse, adult child, close friend, or professional advisor are good choices. They don’t need to be a legal or financial expert, but they should be responsible, dependable, mentally competent, and understand your wishes. You can also name a backup agent in case your first choice is unavailable.

In California estate planning, your agent cannot:

• Make decisions after your death (unless authorized in another document, like a will or trust)
• Change your will
• Transfer your power of attorney authority to someone else (unless specifically allowed in the document)

When Does a Durable Power of Attorney Start and End?

You can choose when your power of attorney goes into effect. Some become active as soon as you sign them, while others are “springing” powers of attorney—meaning they only take effect if a doctor certifies that you’re mentally incapacitated. Either way, your attorney-in-fact will only have authority according to the terms you set in the document.

A power of attorney ends when:

• You revoke it
• The expiration date you specified arrives
• You pass away
• The court finds it invalid or your agent can no longer serve

That’s why keeping your power of attorney up to date is so important. Life changes—marriages, divorces, moves—and your documents should reflect that.

How to Avoid Guardianship Issues

Without a power of attorney in place, your loved ones may need to petition the court to be appointed as your legal guardian or conservator if you become mentally incapacitated. This is where springing power can come into play. This is a public, time-intensive legal process that can often be avoided with proper planning. A power of attorney gives your family more flexibility and control in a time of crisis. Unlike a standard power of attorney, a durable power continues even if you lose capacity, giving your loved ones a smoother, faster option than going to court.

When combined with an advance directive, a durable power of attorney forms a strong legal foundation for both health care and financial decision-making, helping your family avoid legal delays during a crisis.

The Power of a Power of Attorney

Setting up a power of attorney doesn’t take long, but the benefits are enormous and long-lasting. It can save your family members time, money, and stress — and give you the confidence that your personal and financial affairs, and medical treatment decisions will be managed according to your wishes. With the right financial power in place, your agent can manage your investments, handle taxes, and keep your affairs running smoothly while you focus on recovery. California estate planning attorneys agree: a durable power of attorney is one of the smartest tools you can put in place to avoid future uncertainty.

At Best Coast Estate Law, P.C., we help California individuals and families create smart, customized estate plans that include power of attorney documents. Our Burbank estate lawyer ensures your documents comply fully with the California Attorney Act to give your agent the authority they need — without risk or confusion. Whether you’re planning ahead or updating an existing plan, we’re here to make the process smooth and straightforward.

Ready to protect your future with a power of attorney? Contact us today and let’s get started.