What is a California
Durable Power of Attorney?
A California Durable Power of Attorney authorizes a person you choose, called your agent, to manage specified financial and property matters on your behalf.
Unlike an Advance Health Care Directive, it does not authorize your agent to make medical or health care decisions.
Selecting Your California Durable Power of Attorney Agent A California Durable Power of Attorney allows you to appoint a trusted person, called your agent, to manage the financial and property matters you authorize. Depending on the document’s terms, the agent’s authority may begin immediately or only after a specified event, such as incapacity. Because an agent may be given significant authority over your finances, property, accounts, and business interests, the person you select should be dependable, organized, financially responsible, and willing to act in your best interests. Your agent has fiduciary responsibilities. This generally means the agent must act loyally, follow the authority granted in the document, keep your property separate from the agent’s own property, maintain appropriate records, and avoid using your assets for personal benefit unless expressly authorized. Many people appoint a spouse, adult child, relative, or close friend. Others may prefer a qualified professional. The most important consideration is not the person’s title, but whether that individual has the judgment, integrity, availability, and practical ability to handle the responsibilities involved. You should also consider naming one or more successor agents in case your first choice dies, becomes incapacitated, resigns, or is otherwise unable or unwilling to serve. A financial power of attorney does not authorize an agent to make health care decisions. Medical decisions are generally addressed through a separate California Advance Health Care Directive. Estate Planning Organization Checklist A durable power of attorney is only one component of a coordinated estate plan. Other matters to consider may include: Prepare or update your will. Prepare or update your living trust. Prepare a durable power of attorney for financial matters. Prepare an advance health care directive. Prepare a HIPAA authorization. Identify beneficiaries and distribution instructions. Review beneficiary designations for life insurance, retirement accounts, investment accounts, bonds, and other assets. Consider funeral, burial, cremation, or memorial instructions. Prepare a business succession plan when applicable. Organize important financial and estate planning records. Review real-property title, deeds, mortgages, and liens. Tell trusted family members or fiduciaries where original documents are stored. Maintain a list of amounts you owe and amounts owed to you. Decide how outstanding personal loans should be handled. Confirm that assets intended for the trust have been properly transferred or otherwise coordinated with the trust. Avoid recommending that clients email a complete trust document to themselves. Email may not be an appropriate or secure location for sensitive estate-planning documents. A secure client portal, encrypted storage system, or protected digital backup is preferable.
Power of Attorney vs. Durable Power of Attorney A standard power of attorney generally ends if the person who created it, called the principal, becomes incapacitated. A durable power of attorney includes specific language stating that the agent’s authority will continue—or become effective—despite the principal’s later incapacity. A California Durable Power of Attorney is commonly used to authorize an agent to handle specified financial and property matters. It does not authorize the agent to make health care decisions. Health care decisions are addressed through a separate California Advance Health Care Directive, which may appoint an agent to make medical decisions when the principal cannot make those decisions personally. A coordinated estate plan often includes both: A Durable Power of Attorney for financial and property matters; and An Advance Health Care Directive for medical and health care decisions.
Types of Powers of Attorney
​​A power of attorney allows you, as the principal, to authorize another person, called your agent, to act on your behalf. The authority granted can be broad or limited and may begin immediately or only after a specified event.
General Power of Attorney
A general power of attorney gives an agent broad authority over financial and property matters. Depending on the document, the agent may be authorized to manage bank accounts, real estate, contracts, taxes, insurance, investments, business interests, and other financial affairs.
A general power of attorney that is not durable generally ends if the principal becomes incapacitated.
Durable Power of Attorney
A durable power of attorney remains effective, or may become effective, if the principal later becomes incapacitated. California law requires language showing that the authority will continue despite incapacity or will become effective upon incapacity.
It is commonly used for financial and property matters, including:
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Banking and bill payment
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Real-property transactions
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Tax matters
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Insurance matters
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Investments
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Business operations
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Government benefits
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Management of personal property
A financial durable power of attorney does not authorize the agent to make health care decisions.
Limited Power of Attorney
A limited power of attorney authorizes an agent to perform only a specific act or handle a particular matter.
For example, it may authorize an agent to:
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Sign documents for one real-estate transaction
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Manage a particular bank account
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Complete a specified business transaction
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Sign documents while the principal is temporarily unavailable
The authority may end when the task is completed or on a date stated in the document.
Springing Power of Attorney
A springing power of attorney does not take effect immediately. It becomes effective at a specified future time or after a stated event occurs, such as the principal’s incapacity. A springing power of attorney may be durable or nondurable.
The document should clearly explain how the event will be established and who has authority to determine that it occurred.
Immediate Power of Attorney
An immediate power of attorney becomes effective as soon as it is properly signed and executed.
An immediate durable power of attorney may allow the agent to act while the principal is capable and continue acting if the principal later becomes incapacitated.
Because the agent may receive authority immediately, the principal should appoint only someone who is highly trustworthy.
Power of Attorney for Health Care
In California, health care authority is generally included in an Advance Health Care Directive. This document allows a person to appoint an agent to make health care decisions and provide instructions concerning medical treatment.
The health care agent may be authorized to address matters such as:
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Medical treatment
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Health care providers and facilities
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Medications and procedures
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End-of-life decisions
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Personal care and living arrangements
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Organ donation
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Disposition of remains
The authority depends on the instructions and limitations written into the directive.
Statutory Power of Attorney
California provides a statutory form that allows a principal to grant authority over selected financial and property matters. The principal chooses which powers to grant and may limit when or how those powers can be exercised. California Courts cautions that powers of attorney can give an agent substantial control over finances and may warrant attorney review.
Special or Transaction-Specific Power of Attorney
A special power of attorney is another name commonly used for a limited power of attorney. It authorizes an agent to handle a defined transaction or category of responsibilities rather than all financial affairs.
Military Power of Attorney
A military power of attorney may be used by a service member to authorize another person to manage financial, family, property, or administrative matters during deployment or absence.
The scope and duration depend on the document and the service member’s instructions.
Tax Power of Attorney
A tax power of attorney authorizes a qualified representative to communicate with a tax agency and act concerning specified tax matters. Federal tax representation is commonly authorized through IRS Form 2848.
This authority is usually limited to the tax forms, tax periods, and matters identified in the authorization.
Important Distinction
The terms general, limited, and special describe the scope of authority.
The terms durable, nondurable, immediate, and springing describe when the authority is effective and whether it continues after incapacity.
A document may therefore be both:
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General and durable
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Limited and durable
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Immediate and durable
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Springing and durable