Authorize someone you trust to handle finances if you become incapacitated. Avoid costly conservatorship proceedings. Attorney-reviewed. Included with all our estate planning packages.
A durable power of attorney (DPOA) is a legal document that authorizes someone (your "agent" or "attorney-in-fact") to handle your financial affairs if you become incapacitated due to illness, injury, or disability. "Durable" means it remains valid even after you become incapacitated—which is exactly when you need it most.
Without a durable power of attorney, if you become unable to manage your finances, your family would need to petition the court for conservatorship—a costly, time-consuming, and public process that can cost $10,000-$15,000 or more just to establish, plus ongoing annual fees and court supervision.
In California, a properly executed durable power of attorney can authorize your agent to handle banking, pay bills, manage investments, deal with real estate, file taxes, manage retirement accounts, and handle virtually all financial matters on your behalf.
Without a power of attorney, if you become incapacitated, your family must petition the court for conservatorship. This process costs $10,000-$15,000 to establish, takes 4-6 months, requires ongoing court supervision, and becomes public record. A power of attorney avoids all of this.
If you're in an accident or sudden illness, your agent can act immediately—paying bills, managing accounts, handling insurance claims. No waiting for court approval. This prevents financial chaos during a crisis.
You decide who manages your finances—spouse, adult child, trusted friend, professional fiduciary. With conservatorship, the court decides, and it may not be who you'd choose.
A power of attorney is private. Conservatorship proceedings are public court records that anyone can access, including details about your finances and medical condition.
You can customize your power of attorney—specify which powers to grant, add restrictions, require accountings. You can also revoke it anytime while you're competent.
Even if you have a living trust, you need a power of attorney for assets not in the trust and for decision-making authority. It's included in all our estate planning packages.
You can authorize your agent to handle any or all of these matters:
Open/close bank accounts, make deposits and withdrawals, write checks, transfer funds, manage online banking, access safe deposit boxes.
Buy, sell, lease, mortgage, or refinance real property. Sign deeds and contracts. Manage rental properties and collect rent.
Buy and sell stocks, bonds, mutual funds. Manage brokerage accounts. Make investment decisions. Roll over retirement accounts.
Operate your business, hire and fire employees, sign contracts, make business decisions, file business tax returns.
File insurance claims, change beneficiaries, purchase or cancel policies, apply for government benefits (Social Security, Medicare, Medi-Cal).
File tax returns, pay taxes, represent you before the IRS or state tax authorities, sign tax documents.
Hire attorneys, file lawsuits, settle claims, sign legal documents on your behalf.
If you have a living trust, your agent can transfer assets into it, manage trust property, and handle trust administration during your incapacity.
| Factor | Power of Attorney | Conservatorship |
|---|---|---|
| Cost to Establish | $0 (included with package) | $10,000-$15,000+ |
| Time to Establish | Immediate | 4-6 months |
| Court Involvement | None | Ongoing supervision |
| Privacy | Private | Public record |
| Annual Cost | $0 | $3,000-$5,000/year |
| Who Decides Agent | You choose | Court decides |
| Flexibility | Highly customizable | Court controlled |
California has specific rules for valid powers of attorney:
California law (Probate Code §4401) provides a statutory POA form that all California institutions must accept. Our attorney-prepared documents follow this format and include additional protections. Using the statutory form prevents banks and other institutions from refusing to honor your POA.
California requires POAs to be notarized OR signed by two qualified witnesses. We recommend notarization because banks, title companies, and investment firms typically require it. Some powers (like gifting or creating trusts) require notarization regardless.
California law requires you to specifically authorize your agent to make gifts from your assets. Without explicit gifting authority, your agent cannot transfer assets to themselves or others, even for tax planning purposes. Our forms include optional gifting language with appropriate safeguards.
If your agent will handle real estate transactions, record your POA with the county recorder where the property is located. Title companies require recorded POAs for deeds and mortgage transactions. Recording also protects against challenges.
California law requires agents to sign an acknowledgment accepting their duties and responsibilities. Your agent must act in good faith, avoid conflicts of interest, keep records, and act only for your benefit. Violations can result in civil liability and criminal prosecution.
Don't make these costly errors:
Many people choose their oldest child or spouse out of obligation, even when that person isn't good with finances or easily intimidated. Choose someone who is financially responsible, organized, assertive, and trustworthy—even if that's a younger child, sibling, or professional fiduciary.
Online generic POA forms often lack California-specific provisions and protections. Old POAs may not comply with current California law. Banks may refuse forms that don't match California's statutory format. Use an attorney-prepared California-specific form updated for current law.
Give copies to your banks, investment firms, and other financial institutions BEFORE you become incapacitated. Many institutions require review and approval before accepting a POA. If you wait until incapacity, institutions may refuse to honor it or demand additional proof, delaying access to your funds.
Springing POAs only become effective upon incapacity, but who determines incapacity? Requiring "two doctors" sounds good but creates delays and arguments. Most attorneys recommend immediate POAs with instructions to your agent about when to use it.
Your agent needs to understand your values, priorities, and expectations. Discuss what bills should be paid first, which assets can be sold if needed, whether to apply for Medi-Cal benefits, and how to handle family requests for money. Don't assume they'll "figure it out."
While you should grant broad powers, consider requiring annual accountings, prohibiting self-dealing, or appointing a monitor for large gifts or transfers. This protects you from potential abuse while still allowing your agent to manage your affairs effectively.
If your primary agent can't serve (death, disability, relocation), you need successors. Name at least 2-3 successive agents in priority order. Otherwise, you're back to conservatorship court if your primary agent is unavailable.
A durable power of attorney remains valid if you become incapacitated—which is when you need it most. A non-durable POA becomes void upon incapacity. For estate planning, you always want durable.
In California, you can choose "immediate" (effective as soon as signed) or "springing" (only effective upon incapacity). Most estate planning attorneys recommend immediate with instructions to your agent about when to use it.
Yes. You can name co-agents who act together, or successive agents (if first can't serve, second takes over). You can also name different agents for different tasks. Most people name one primary agent and one or more successors.
Execute a written revocation and provide copies to your agent, banks, and anyone who has a copy. You can revoke anytime while you're competent. Death automatically revokes it. Divorce revokes your spouse's authority unless you specify otherwise.
Yes. California requires durable powers of attorney to be notarized or signed by two witnesses. Our documents include notary acknowledgment language. Most banks require notarization anyway.
Your agent has a fiduciary duty to act in your best interest. Misuse is illegal and can result in criminal prosecution. Only appoint someone you trust completely. You can require accountings and appoint a monitor. You can also revoke the POA anytime while competent.
No. A durable power of attorney covers finances only. For healthcare, you need an Advance Health Care Directive (also included in our packages), which names a healthcare agent.
It automatically terminates. Your agent has no authority after death. At that point, your will or trust controls asset distribution, and your executor or successor trustee takes over.
California law (Probate Code §4305) requires institutions to accept properly executed California statutory POAs. However, banks may require the POA to be "reasonably current" (typically within 5-7 years). They can also require their own internal forms for ongoing account management. Provide copies to institutions before you need them.
Most estate planning attorneys recommend an "immediate" POA but with clear instructions to your agent about when to use it. This avoids proving incapacity. You can add safeguards like requiring your agent to sign an oath, provide accountings, or only act with co-agent approval. Trust and communication are key.
Your family must petition the court for conservatorship—a public, expensive ($ 10,000-$15,000 to establish), and time-consuming (4-6 months minimum) process. The court controls your finances with ongoing supervision, annual accountings, and $3,000-$5,000/year in costs. A POA avoids all of this.
Yes. You can grant specific powers (banking only, not real estate) or exclude powers (no gifting, no trust modifications). You can set dollar limits, require approval from another person, or mandate periodic accountings. However, too many restrictions can make the POA impractical to use when your agent needs to act quickly.
Review and consider updating your POA in these situations:
If your chosen agent can no longer serve effectively, execute a new POA naming a new primary agent. Don't wait—having no functioning agent means conservatorship court.
Divorce automatically revokes your ex-spouse's authority as agent in California. However, remarriage doesn't automatically update your POA to name your new spouse. Execute a new POA reflecting your current wishes.
Many banks and institutions view POAs older than 5-7 years with suspicion, questioning whether they reflect your current wishes. California law has also changed over the years. Update your POA every 5 years to ensure acceptance.
Significant wealth increase, new business ownership, inheritance of complex assets—these may require updating your POA to include specific powers or add safeguards like required accountings.
While California POAs are generally honored nationwide, some states have specific requirements. If you acquire property in another state, consider executing a POA valid in that state as well.
If you want to add or remove powers (like gifting authority), change restrictions, or modify instructions to your agent, execute a new POA. Don't rely on separate letters or verbal instructions—put it in the legal document.
Included with all estate planning packages. Avoid conservatorship. Protect your finances.
âś“ Attorney-Reviewed âś“ 25+ Years Experience âś“ California State Bar #208356