Durable Power of Attorney: Definition and How It Works in California
A durable power of attorney stays in effect if the person who signed it later becomes incapacitated, which is what makes it useful for incapacity planning rather than a single transaction.
How it works in California
An ordinary power of attorney ends automatically if the person who signed it loses capacity, which defeats the purpose for incapacity planning. A durable power of attorney avoids that by including durability language required under Prob. Code, § 4124: “This power of attorney shall not be affected by subsequent incapacity of the principal.” With that language in place, the agent’s authority survives exactly when the principal needs it most.
A durable power of attorney can take effect immediately on signing, or it can be written to spring into effect only once a specified event occurs, most often a determination of incapacity by a person the document names. Prob. Code, § 4129 lets a springing power of attorney take effect on whatever contingency the document specifies, confirmed the way the document itself requires, often through a declaration from a person it names.
Why it matters
Without a durable power of attorney, no one automatically has authority to pay someone’s bills, manage their accounts, or handle their property if they become incapacitated, even a spouse. For example, a spouse who wants to sell a jointly titled asset or manage a retirement account for an incapacitated husband or wife may find the institution won’t act without either the document in hand or a court-appointed conservator.
Common mistakes
People sign an immediate power of attorney and worry about giving up control right away, when a springing version can address that concern, or they sign a springing version and never nail down exactly how incapacity gets determined, leaving the agent unable to act quickly when it matters. It’s also common to sign the document once and never give a copy to the financial institutions where it might actually be needed.
Related terms
- Conservatorship: the court process a durable power of attorney is usually meant to avoid.
- HIPAA Authorization: often signed alongside a durable power of attorney so the agent can also access medical records.
- Power of Attorney: the broader category; not every power of attorney is durable.
- Springing Power of Attorney: one way to structure when a durable power of attorney actually takes effect.
Part of the California estate planning glossary. For the full treatment, see Durable Power of Attorney in California.
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