What is a power of attorney?

A power of attorney is an important legal tool for California residents. It is a written document that gives a person the power and authority to act on behalf of another person. A power of attorney can be broad or limited in scope. A general power of attorney allows the attorney-in-fact (the person designated to act on behalf of another person) to make all legal and financial decisions for the grantor (the person creating the document). A limited power of attorney only authorizes specific actions. This could include the power to sell property, sign tax forms, or access bank accounts on behalf of the grantor. A power of attorney is often used in Trusts and Estates Law when a grantor becomes incapacitated and is unable to make decisions. In this case, the attorney-in-fact will act as the grantor’s representative and make decisions on the grantor’s behalf. The power of attorney ceases to exist when the grantor dies. At this point, the attorney-in-fact’s authority ends and any decisions they made while in this role will be evaluated by the executor of the grantor’s estate. Power of attorney is a powerful legal tool and should only be used when absolutely necessary. It is important to carefully consider who you choose to be your attorney-in-fact, as they have the power to make major decisions on your behalf.

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