Power of Attorney: The Ultimate Trust Exercise (Or Not)
So, you've been appointed as someone's Power of Attorney (POA). Congrats, you're now officially in charge of their life (or at least their finances). But let's get one thing straight: this isn't a free pass to splurge on that yacht you've always wanted.
Does Power of Attorney End at Death in California?
Short answer: Yes, it does. Once the principal (that's the fancy term for the person who gave you the POA) kicks the bucket, so does your authority. It's like being a superhero who loses their powers after the final battle. Or, to use a less dramatic analogy, it's like being a babysitter who gets fired when the parents come home.
Now, you might be thinking, "But what about all those movies where the evil stepsister uses the POA to steal everything?" Well, those are just movies, folks. In reality, trying to pull a fast one after someone dies is a recipe for legal disaster. Trust me, you don't want to be the villain in that story.
What Happens When the Principal Dies?
Once the principal is six feet under (or cremated, or whatever their preferred exit strategy is), the POA becomes as useful as a chocolate teapot. It's time to hand over the reins to the executor of the will or the administrator of the estate. That's right, your 15 minutes of fame (or financial control) are over.
Don't Confuse POA with a Trust
A common misconception is that a POA is the same as a trust. It's not. While a trust can continue after the grantor's death, a POA is strictly a living document. So, if you want to have a say in what happens to someone's assets after they're gone, a trust is the way to go. But that's a whole other can of worms.
What Now?
So, now that you know your POA days are numbered, what should you do? Well, first of all, don't panic. There are plenty of other ways to make a difference in people's lives. You could volunteer, donate to charity, or simply be a good friend. And if you really want to get involved in estate planning, consider becoming a trust administrator. Just remember, with great power comes great responsibility (or something like that).
How To...
- How to understand if a POA is still valid: Check the date on the document. If the principal is deceased, the POA is no longer valid.
- How to handle finances after the principal's death: Contact the executor of the will or the administrator of the estate. They will take over financial matters.
- How to protect yourself as a POA: Keep detailed records of all financial transactions and communicate regularly with the principal and their loved ones.
- How to choose a successor POA: Consider someone trustworthy, organized, and familiar with the principal's financial affairs.
- How to create a durable power of attorney: Consult with an attorney to ensure the document meets your specific needs and complies with California law.
