Power of Attorney FAQ
Here are the most frequently asked questions associated with financial power of attorney in California. If you are looking for healthcare power of attorney, please review the Advance Healthcare Directive FAQ.
What is a Power of Attorney?
A Power of Attorney (POA) is a legal form that lets someone you trust make decisions for you if you can’t due to physical or mental incapacity. You choose what kind of financial decisions they can make—like handling bank accounts, personal property, or signing documents. You can decide whether the POA should be effective right away; or you can have it become effective once you are determined to be incapacity. POA’s are a simple way to plan ahead and avoid the time and expense of conservatorship process which is similar to probate, but while you are alive.
Why do I need a Power of Attorney?
You need a Power of Attorney so someone you trust can step in and handle things if you can’t—like paying bills, managing accounts, or making medical decisions. Without one, your loved ones might have to go to court to get permission, which takes time and money. A POA gives you control now so things don’t fall apart later. It also helps avoid confusion, delays, and fights during a crisis.
How can I create a Power of Attorney?
To create a Power of Attorney, follow these key steps:
Choose your agent – Pick someone trustworthy who can act responsibly on your behalf. If you don’t trust them, don’t create a power of attorney.
Decide what powers to give – You can grant broad authority or limit it to specific tasks like managing finances.
Find the right legal form – California has it’s own valid, state-specific uniform statutory power of attorney and attorneys can prepare it for you.
Sign and notarize properly – Have your signature notarized to make it official.
Share copies – You can share a copy with your agent, financial institutions, and anyone else who needs it.
When does the Power of Attorney become effective?
Who should be my agent for the Power of Attorney?
Why do I need a Power of Attorney if I have a Trust?
Even if you have a trust, you still need a Power of Attorney because not everything you own or do is controlled by your trust. Any assets that are left outside the trust are not controlled by the trust.
A POA with broad powers allows someone handle personal matters that fall outside the trust—like filing personal taxes, managing retirement accounts, or communicating with insurance companies. A trustee only manages trust assets, but your agent under a POA can act for you in broader ways if you’re incapacitated. Without a POA, your family might still need to go to court for authority to handle non-trust matters. Having both documents is necessary for a comprehensive estate plan.
Do I need to use an attorney to create my Power of Attorney?
It is recommended to use an estate planning attorney to create your POA because the POA is a very powerful document. It allows someone to step into your shoes and sign documents on your behalf. You are not required to use an attorney, but if you are creating an estate plan, then the estate planning attorney will create the POA as well.
Within the estate planning community, we say you might not hire someone to paint your house, but you always hire an electrician to do your electricity because electrical mistakes are more dangerous. Same goes for estate planning documents. Some of the documents are easier to create than others, but generally you want to hire an expert. You have to do your research and find what is the best path for you.
What if the financial institution doesn't honor the POA?
If a financial institution in California doesn’t honor your Power of Attorney, here’s what you can do:
Request the reason in writing – Under California Probate Code § 4306, the institution must state their reason for refusal within a reasonable time.
Check form compliance – Make sure your POA uses California’s statutory form or is properly drafted, signed, and notarized as required by California law.
Provide a Certification of Agent – California allows agents to sign a certification (Probate Code § 4305) affirming their authority, which can ease concerns.
Escalate to legal or compliance – Ask to speak with someone higher up at the bank. Many issues resolve when reviewed by legal staff.
Use a revocable trust as backup – In California, properly funding a revocable trust often avoids POA disputes entirely for financial matters.
