Understanding Powers of Attorney in California

TL;DR Summary: A Power of Attorney is a critical estate planning tool for every Californian over 18. Both a medical and a financial power of attorney are essential, as they allow you to appoint another person to make decisions on your behalf if you cannot do so. Seek assistance from an experienced estate planning attorney when creating these powerful documents. 

When you hear the term Power of Attorney (“POA”), it might sound like something reserved for wealthy families or high-powered business owners. But in reality, a Power of Attorney is one of the most important estate planning tools for everyone in California. Whether you’re retired in Roseville, managing a business in Rocklin, or helping aging parents in Sacramento, having the right Power of Attorney in place can save your family from confusion, stress, and even expensive court battles.

At Goff Legal, our experienced estate planning attorneys often explain Powers of Attorney as “peace-of-mind documents.” They give someone you trust the legal authority to step in and help when you can’t make decisions for yourself. Without them, your loved ones may have to go through the time-consuming and costly court process of establishing a conservatorship.

Here is a guide to understanding Powers of Attorney in California: what they are, the different types, how they work, and why having the right one matters for your future.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the “principal”) to appoint another person (called your “agent” or “attorney-in-fact”) to make decisions on your behalf. Depending on the type, these decisions may involve finances, healthcare, real estate transactions, or other personal matters.

Think of it as creating a backup decision-maker, someone who has the authority to act in your place and can step in seamlessly if you’re out of the country, seriously ill, or otherwise unable to act for yourself.

Why Powers of Attorney Matter in California

The California Probate Code contains unique laws governing Powers of Attorney, which means it’s important to understand how they work in this state specifically. Here are a few reasons they matter so much:

• Avoiding Court Intervention: Without a POA, your loved ones may need to file for a conservatorship, which is expensive and stressful.
• Keeping Decisions in Trusted Hands: You choose who makes decisions for you, rather than leaving it up to a judge.
• Flexibility: POAs can be tailored to fit your life, broad or limited, immediate or triggered only if you become incapacitated.
• Part of a Complete Estate Plan: Alongside your trust, will, and healthcare directive, POAs round out your protection plan.

The Main Types of Powers of Attorney in California

Not all POAs are created equal. In fact, there are several different types you might consider, each with its own purpose.

1. General Power of Attorney

A General POA gives your agent broad authority to handle your financial and legal affairs. This might include paying bills, managing investments, or handling property transactions.

Important: In California, if the General POA is not durable, it ends if you become incapacitated, so it’s not usually the best long-term solution.

2. Durable Power of Attorney

This is one of the most common estate planning tools. A Durable POA remains valid even if you become incapacitated. “Durable” means it endures through illness or disability.

For example, if you suffer a stroke and can’t sign checks, your agent can continue managing your finances without interruption.

3. Springing Power of Attorney

A Springing POA only takes effect if a specific event happens, usually, if you’re declared incapacitated by a doctor. While this might sound appealing, springing POAs can create delays or disputes (e.g., what exactly counts as “incapacitated”?). Many Californians prefer a durable POA that’s effective immediately but kept in trusted hands.

4. Limited Power of Attorney (aka “Special Power of Attorney”)

Sometimes you only need an agent for a specific task, such as selling a home while you’re abroad. In that case, you can create a Limited POA that grants authority only for that transaction.

5. Medical (Healthcare) Power of Attorney (aka Advance Healthcare Directive

In California, a medical power of attorney is called an Advance Health Care Directive. It allows you to appoint someone to make medical decisions on your behalf if you are unable to do so. Think of it as choosing your personal healthcare advocate.

This can cover decisions about surgery, medications, long-term care, or even end-of-life treatment preferences.

How to Choose the Right Agent

One of the most important parts of a Power of Attorney is deciding who to name as your agent. This isn’t just about picking the most available family member. It’s about trust, reliability, and clarity.

Here are a few qualities to look for:

• Trustworthiness: They will have access to your money, property, and personal decisions.
• Financial Savvy: For a financial POA, choose someone who can handle complex accounts responsibly.
• Advocacy Skills: For healthcare decisions, pick someone who will speak up for your wishes.
• Geographic Proximity: Someone nearby can step in quickly if needed.
• Willingness: Don’t assume—ask if they’re willing to take on the responsibility.

Tip: Many married Californians name a spouse as their first choice and an adult child or trusted friend as a backup.

Common Misconceptions About Powers of Attorney

At Goff Legal, we often hear the same questions or misunderstandings. Let’s clear up a few:

1. “I’m married, so my spouse can automatically decide for me.”
   NOPE! Without a POA, your spouse may run into roadblocks accessing accounts or making healthcare choices.
2. “A Power of Attorney covers everything.”
   Not quite. A financial POA doesn’t cover healthcare, and vice versa. That’s why most people need more than one type.
3. “I can just download a form online.”
   Generic forms often don’t meet California’s specific legal requirements or your personal needs. A poorly drafted POA may not be honored by banks or hospitals.
4. “I’m too young for this.”
   Emergencies don’t wait until retirement. Anyone over 18 needs a POA.

The Risks of Not Having a Power of Attorney

If you don’t have a valid POA and something happens to you, your family could face:

• Court-ordered conservatorship: This can take months and tens of thousands of dollars in legal fees.
• Frozen accounts: Loved ones may not be able to pay your bills or access your funds.
• Healthcare delays: Doctors may hesitate (or refuse) to follow instructions if no clear decision-maker is authorized.
• Family conflict: Without clear authority, siblings or relatives may disagree on what’s best.

How to Create a Power of Attorney in California

Here are the basic steps:

1. Decide what type of POA you need. Most Californians benefit from both a Durable Financial POA and an Advance Health Care Directive.
2. Choose your agent(s). Think carefully about your first choice and at least one alternate.
3. Work with an estate planning attorney. This ensures your document meets California’s strict legal requirements and is tailored to your life.
4. Sign with proper formalities. Some POAs require notarization or witnesses.
5. Distribute copies. Your agent, financial institutions, and healthcare providers should have access if needed. (Remember the Terri Schiavo case?)

Integrating Powers of Attorney into Your Estate Plan

A Power of Attorney is just one piece of your estate planning puzzle. At Goff Legal, we always make sure it works in harmony with your trust, will, and healthcare documents. For example:

• If your trust owns most of your assets, your POA should still cover non-trust assets like retirement accounts.
• If your healthcare directive spells out your wishes, your healthcare POA ensures someone can enforce them.
• If you update your trust, don’t forget to review your POA to keep everything consistent.

Real-Life Example: Why Timing Matters

We once worked with a woman whose husband had a sudden stroke. They had a trust, but no Power of Attorney. Because certain accounts weren’t in the trust, she couldn’t access them to pay medical bills. She had to file for a conservatorship, an expensive, public, and emotionally draining.

Contrast that with another client, who had both a trust and properly drafted Powers of Attorney. When he became ill, his daughter could immediately step in, pay bills, and make healthcare decisions without delay. The difference came down to planning ahead.

Seek Legal Counsel

Powers of Attorney may not be the flashiest estate planning documents, but they’re some of the most practical. Understanding power of attorney in California can protect you and your family from unnecessary stress, expense, and conflict.

If you don’t have one, or if yours hasn’t been reviewed in years, it’s time to take action. Goff Legal’s experienced estate planning attorneys help Californians create Powers of Attorney that actually work when they’re needed most. As a woman-owned, boutique estate planning law firm, we pride ourselves on making the process friendly, understandable, and tailored to your life.

Contact Goff Legal today for a free discovery call and start building the peace of mind you and your loved ones deserve.

Frequently Asked Questions About California Powers of Attorney

Can I name more than one agent?

Yes. You can appoint co-agents, though it’s often simpler to name one primary and one alternate. If co-agents disagree about what to do, things can get messy and complicated fast. 

Can I revoke a POA?

Absolutely. As long as you’re mentally competent, you can change or revoke your POA at any time.

Will banks honor my POA?

If it’s properly drafted under California law, yes. But generic or outdated forms are often rejected.

Does my POA end when I die?

Yes. Powers of Attorney end at death; your trust and will then take over.

What happens if my agent abuses their power?

California law allows for oversight and remedies, but the best safeguard is choosing a trustworthy agent and having an attorney draft safeguards into the document. Check out our free resource on how to select an estate plan agent.