You can decide if you want your power of attorney to expire on a certain date or after your agent performs a specific task. Or, your power of attorney may be durable. This means that it will last until you cancel it or until you die. The POA goes into effect the moment you sign it.
However, it is equally important to note that a power of attorney will expire when you decide to do so. Usually, a POA lasts 6 years. To extend the POA for an additional 6 years, you must file a new POA. Divya, Some states like California have laws that limit the lifespan of a durable power of attorney to five years and say it needs to be redone.
Banks and other institutions have a harder time accepting older and more durable power of attorney documents, so it's good to do them again every five years or so. All powers of attorney are annulled at the moment the director (the one who makes them) dies. If the “principal” of the permanent power of attorney becomes incompetent, then the permanent power of attorney should come into force and the agent should be able to act. If your friends, family or officers are aware of problems with a power of attorney, they can file a petition with the Probate Department.
An attorney admitted to practice law in California can prepare a durable power of attorney for you and ensure that it is properly signed to be valid under state law. Like a durable power of attorney, a revocable living trust is established while the grantor is still alive. If they are foolish enough to deal with you after the director's death, go ahead and get on with your stupidity, use the durable power of attorney. This means that the person you selected as your power of attorney will not be able to handle any financial matters on your behalf when you die.
It is possible to create a condition that must be satisfied before the POA goes into effect, such as having a doctor declare that you are incapacitated, but there are many reasons why this type of emergent power of attorney is not usually recommended. If you used the California statutory POA form, it will say, UNLESS OTHERWISE STATED ABOVE, THIS POWER OF ATTORNEY IS EFFECTIVE IMMEDIATELY AND WILL CONTINUE UNTIL REVOKED. These powers may include the ability to transfer personal and real property, release and foreclose, transfer and guarantee motor vehicle titles, and execute security agreements such as trust deeds. However, in most cases, this law overrides the purpose of having a current power of attorney and, for the same reason, the POA must be explicitly declared as “durable.
Adding a durable power of attorney to your estate plan lets you know that someone you trust to fulfill your wishes will be there to handle your financial affairs in case you can't handle them on your own. A durable financial power of attorney can prevent a financial disaster in case you become incapacitated. Now that you have the important facts about durable powers of attorney and understand that it involves granting significant legal authority to an agent, take the time to carefully consider the person you choose to be your agent. A power of attorney allows someone else to handle financial or health care matters on your behalf, and California has specific rules about types and requirements.
A durable power of attorney with two persons witnessing the signing of the power of attorney by the director is valid without being notarized. An important consideration to keep in mind is that a permanent power of attorney is a legal document that gives significant authority to another person to act on your behalf, even when you are mentally incapacitated and unable to act.