If something happened to you—an accident, an illness, or just getting older—who would handle your finances? Who would pay your bills, manage your bank accounts, or deal with your property if you couldn’t do it yourself?

In California, one of the most important tools for planning ahead is called a Durable Power of Attorney. Whether you’re young or older, healthy or managing a condition, this legal document can give you peace of mind that someone you trust has your back if life throws a curveball.

Let’s break it down.

What is a Power of Attorney?

A Power of Attorney (POA) is a legal document where you give someone else the authority to act on your behalf. The person giving the authority is called the principal, and the person receiving the authority is called the agent or attorney-in-fact.

There are different types of powers of attorney depending on what powers are given and when they take effect. The Durable Power of Attorney is the one most commonly used for long-term planning.

What Does “Durable” Mean?

“Durable” means the power stays in effect even if you become incapacitated—meaning you’re unconscious, mentally impaired, or otherwise unable to make decisions.

This is the key difference. A regular Power of Attorney ends when you become incapacitated. A Durable Power of Attorney stays active and allows your agent to keep handling your affairs when you need help the most.

What Can a Durable Power of Attorney Do?

In California, a Durable Power of Attorney usually covers financial and legal decisions, including:

• Paying bills

• Managing bank and investment accounts

• Buying or selling property

• Filing taxes

• Handling business affairs

• Applying for public benefits (like Medi-Cal)

• Managing retirement accounts

It does not give authority over medical decisions. That’s handled by a separate document called an Advance Health Care Directive.

When Does It Take Effect?

You can choose one of two options:

1. Immediately

Your agent can start acting as soon as you sign the document, even if you’re still fully capable.

2. Springing (Upon Incapacity)

The power only “springs” into effect if you become incapacitated, typically confirmed by a doctor.

Most people choose a springing power to keep control until they truly need help. But if you’re traveling, deployed, or managing a chronic illness, you might want the power to start immediately.

Who Should You Choose as Your Agent?

This is a critical decision. You want someone:

• You trust completely

• Who is responsible with money

• Who understands your values

• Who will act in your best interest

Many people choose a spouse, adult child, sibling, or longtime friend. You can also name backups in case your first choice can’t serve.

Can the Agent Do Whatever They Want?

No. Your agent has a legal duty to act:

• In your best interest

• According to your instructions

• With reasonable care

You can also place limits in the document—like restricting them from selling your home or making gifts to themselves.

They are not allowed to use your money for their personal benefit, unless you specifically authorize it.

Why Should I Set This Up Now?

Here’s the truth: if you become incapacitated without a Power of Attorney, your family may have to go to court to get legal permission to manage your affairs. This is called a conservatorship in California, and it can be:

• Expensive

• Public

• Time-consuming

• Stressful for your loved ones

A Durable Power of Attorney keeps everything private, simple, and under your control.

Is a Power of Attorney Just for Older People?

No. Anyone over 18 should consider having one—especially if you:

• Own property

• Have children

• Travel often

• Run a business

• Have a chronic illness or disability

Life is unpredictable. Having a POA means you’re covered if something unexpected happens—at any age.

How Do I Make One?

Here are the steps:

Step 1: Choose Your Agent(s)

Pick someone you trust. You can also name alternates.

Step 2: Decide What Powers to Give

You can give broad authority, or just specific powers (like managing your bank account).

Step 3: Choose When It Takes Effect

Immediately, or only if you become incapacitated.

Step 4: Put It in Writing

Use California’s statutory form or a customized legal document.

Step 5: Sign Properly

In California, you must either:

• Sign in front of a notary, or

• Sign in front of two witnesses (not your agent)

Some financial institutions may prefer a notarized version, so notarizing is often the safer route.

Does a Power of Attorney Expire?

The Durable Power of Attorney ends automatically when you die. At that point, your executor or trustee takes over your affairs.

It can also end if:

• You revoke it

• The agent resigns or becomes incapacitated

• A court invalidates it

You should review your POA every few years, especially after major life changes.

What If I Already Have One?

If you already have a Durable Power of Attorney, check the following:

• Is it up to date?

• Is your agent still the right choice?

• Does it still reflect your wishes?

• Was it signed properly under California law?

Some older documents may not be accepted by banks or government agencies. You may want to update it to use California’s current statutory form or consult an attorney to make sure it still works for your needs.

Final Thoughts

A Durable Power of Attorney is one of the simplest but most powerful legal tools you can have in place. It gives you control over who manages your finances and makes sure your family can act without court involvement if something happens to you.

It’s about peace of mind. And in California, where property values, legal complexities, and cost of living are high, smart planning today can save thousands of dollars—and a lot of stress—tomorrow.

If you don’t have a Durable Power of Attorney yet, now’s the time to set it up. It’s a small step that makes a big difference.