Here’s What Happens
Upon the date of the principal’s death, any power of attorney is immediately terminated. It is common for people to mistake a power of attorney for a trust that survives death. In California, there are several different types of powers of attorney you can draft. However, most people choose to create a general durable power of attorney.
A general durable power of attorney revokes the authority of all powers of attorney created beforehand. However, several exceptions include allowing safety deposit box access, depositing funds, withdrawing funds, and writing checks. The principal must create a statement of intent to appoint an agent. The agent of the general durable power of attorney will remain in authority until the principal is deceased.
The general durable will also include all specific powers granted to the agent. These powers may include the ability to convey personal and real property, release and execute mortgages, transfer and endorse motor vehicle titles, and execute security agreements like deeds of trust.
Other powers that may be specified in a general durable POA are the ability to endorse and receive checks, withdraw and deposit checks, have safety deposit box access, and endorse, transfer, and convey business interests. The agent may also change the beneficiary designation and ownership of qualified retirement plans, 401Ks and annuities, appoint ancillary agents, prepare, file, and sign tax returns.
General durable powers of attorney in California contain clauses for document reliability, document reliance, information release, and ancillary agent appointment. A power of attorney will also dictate the agent’s fiduciary eligibility, compensation, liability, enforcement of authority, revocation, and amendment. This document must be dated, signed, and notarized.