What types of Power of Attorney are recognized in California?
The four types of a Power of Attorney recognized by the State of California are a Durable General Power of Attorney, Non-Durable General Power of Attorney, Limited Power of Attorney, and Healthcare Power of Attorney. Each Power of Attorney recognized by the State of California serves a specific purpose and you do not have to choose the same individual to act as your attorney-in-fact for all your affairs.
Durable General Power of Attorney
A Durable General Power of Attorney, commonly referred to as a Financial Power of Attorney, allows the designated agent to make financial decisions on your behalf. Although you may limit the actions your attorney-in-fact is permitted to make, a Durable General Power of Attorney grants your agent the authority to take custody of your financial assets, maintain accounts, continue operating any business affairs belonging to you or in which you have a substantial interest, manage real estate you may own during your incapacity, and control your digital assets, to name a few. You can designate the Durable General Power of Attorney to become effective immediately upon execution of the document or only upon your incapacity.
Non-Durable General Power of Attorney
A Non-Durable General Power of Attorney is similar to a Durable General Power of Attorney, as it authorizes your designated agent to make financial decisions on your behalf. However, a Non-Durable General Power of Attorney becomes ineffective and void upon your incapacitation. A Non-Durable General Power of Attorney is often used to grant an agent broad decision-making powers in an individual’s absence.
Limited Power of Attorney
A Limited Power of Attorney does not grant the overarching powers to the designated attorney-in-fact like the Durable General Power of Attorney and Non-Durable General Power of Attorney. A Limited Power of Attorney is used for a specific purpose and the decision-making powers granted are restricted to certain actions only. A Limited Power of Attorney often has a set period of time in which the Limited Power of Attorney is effective and upon completion of such action, the Limited Power of Attorney becomes void. A Limited Power of Attorney is commonly used for real estate transactions. For example, when an individual is closing on a real estate transaction and such individual is unable to attend the closing and execute the closing documents, a Limited Power of Attorney is signed to permit a designated agent to execute the closing documents on the individual’s behalf.
Healthcare Power of Attorney (Advanced Healthcare Directive)
Finally, a Healthcare Power of Attorney, also known as an Advanced Healthcare Directive, authorizes your agent to make health care decisions on your behalf. If you are incapacitated or declared incompetent to make health care decisions on your own by a physician, a Healthcare Power of Attorney is used to designate a trusted individual to be your healthcare advocate and to make healthcare decisions for you. As with the Durable General Power of Attorney, you may elect to have the Healthcare Power of Attorney effective immediately upon execution of the document or effective only upon your incapacity. Under a Healthcare Power of Attorney, your healthcare agent may have the authority to gain access to your medical records, give, withhold, or modify consent to healthcare treatment, authorize relief from pain, make arrangements at your residence or hospital to assure your healthcare needs are provided for, and make decisions on your behalf regarding life-sustaining medical treatments.