No one wants to think about what happens to their affairs if they become unable to manage them or answer questions on their own. But it’s up to you to decide what you want to happen if you need another person to step in and care for these concerns on your behalf.
A power of attorney document in California can be all-encompassing or limited to specific areas of your life like healthcare or finances. A power of attorney for asset management authorizes someone else to handle financial issues on your behalf if you are in a situation where you’re unable to do so, such as a hospitalization.
The agent that you appoint inside a financial power of attorney has broad authority to make decisions on your behalf in relation to the management of your affairs, including:
- Accessing your bank accounts
- Signing checks
- Selling or buying assets
- Making financial decisions
- Paying for healthcare
You can equip the agent with more information about how you’d like money and assets spent by outlining this inside the power of attorney document. Given that your agent might need to step into a very stressful situation, the more work you can do to make this process easier for the agent, the better.
You can make your power of attorney as broad or as limited as you like, but once that document is considered legally valid, you’d need to update it with an entirely new document if you wish to make changes. Making sure that the document is properly written and signed is important for you and your loved ones who might be affected by the power of attorney.
If you need help answering the questions that guide you in the creation of a financial power of attorney, our Pasadena estate planning office is here to answer those questions and give you the support you need.