The Power of a Power of Attorney

 One of the most useful, easy to access, inexpensive and misunderstood legal documents is the Power of Attorney.
This document is used to vest another person with the right to do business on behalf of the grantor (i.e., the person who “gives” someone else his/her Power of Attorney). It creates this right, for either limited or unlimited purposes.
For example:
A. While I’m out of town, I want my brother to be able to pay my bills. I execute a limited Power of Attorney, giving him authority to sign checks on my personal check account.
B. I’m in the process of selling my house. While I’m away. I want my partner to be able to sign the grant deed to be prepared by the escrow agent. I execute a limited Power of Attorney, authorizing my partner to sign the deed and whatever other documents may be required.
C. I’ll be on a yearlong world cruise. I want my daughter to be able to take care of all my personal business, including but not limited to buying, selling, managing assets, paying bills, borrowing money and making investments. I sign a general Power of Attorney giving her broad powers to act on my behalf.
A word of caution: Since we won’t find out until after the fact whatever our Attorney-in-Fact may have done, it is vital that we select someone we trust implicitly to hold such significant powers.
There are two kinds of Powers of Attorney: A Durable Power of Attorney takes effect when it is signed and notarized, and remains in effect even if the grantor thereafter becomes disabled, unless and until the grantor revokes it. A Springing Power of Attorney does not ever take effect unless and until the grantor becomes disabled.
Although Powers of Attorney may be specially drafted, many people are content to use the statutory Power of Attorney form which was created by the California Legislature. This form is succinct, widely recognized and costs little or nothing.
Bear in mind two limitations to the use of a Power of Attorney:
A. It is a personal device. Therefore, it cannot be used to delegate the powers of the Trustee of a trust.
B. The Power of Attorney dies when the grantor dies.
Jerry Kessler practices law in Santa Clarita. He can be reached at 661-255-1001.