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A Power of Attorney is a legal authorization to act on someone else’s behalf. A Power of Attorney continues even if the Grantor has become incapacitated and expires at death. The Power of Attorney is dedicated to ensuring that even if an individual becomes mentally incapacitated, his or her trusted friend or loved one will deal with all of the legal and financial matters on behalf of the Grantor.

In other words, a power of attorney is a document in which the Grantor designates an agent to act on his or her behalf in various affairs, such as financial or business matters.

For example, Jimmy wants to sell his house but he needs to travel out of the state for several months. John, his best friend, proposes to use a valid Power of Attorney in order to designate him as Jimmy’s agent. Though John can sell the house and transfer money to Jimmy. In this example, Jimmy was just unavailable for some time. But what if he would be incapacitated? In this case, a Durable Power of Attorney would allow him to obtain substantial peace of mind and it can even occur that he will overcome his mental illness. Meantime, John may pay Jimmy’s checks, mortgage, and other obligatory payments. Thus, a power of attorney can become a useful tool for a variety of situations in our everyday life. In particular, the role of a power of attorney increases when a sudden incapacity occurs and it is indispensable to take care of an individual. A principal must have the mental capacity to enter into contract as well as the agent has to be able to act as your agent. Consequently, your minor child cannot be designated as an agent.

It should be noted that a Power of Attorney is revocable. It means that the principal may terminate the Power of Attorney under terms of document or by delivering in writing about his or her decision to the agent. Additionally, there are a number of other reasons which may stop the agent to act, such as:
  • The death of the principal,
  • Divorce between spouses who are the principal and the agent.
A power of attorney comes into force whether immediately or after some event. Take into consideration that a durable Power of Attorney is a more effective mean to ensure that you will a trust to act on your behalf for financial matters if you suddenly become incapacitated.
Finally, you should know that your agent named for financial affairs cannot handle all agreements and transactions. Most importantly, a Power of Attorney has no right to make decisions on the Grantor behalf for health care issues. In order to give someone the authority to make medical care decision on your behalf, you need to appoint a Power of Attorney for Health Care pursuant to provisions of an Advance Health Care Directive.

It should be noted that a Power of Attorney is a very important legal document and it results in far-reaching effects. It is crucial to avoid incorrectly prepared documents or the potential abuse of the rights by your agents.

The Margarian Law Firm lawyers are dedicated to providing our clients with consultations to make informed decisions about your assets. At The Margarian Law Firm, the skilled and experienced lawyers will work with you in order to ensure and implement cost-effective estate planning for you.

If you want to learn more about California Power of Attorney, we encourage you to speak with our knowledgeable and experienced lawyers who will help you to develop a plan that saves you the most money.

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