Yes, you can restrict a power of attorney in Los Angeles California, if you are the principal, you are competent, and you use the right restrictive language in your Durable Power of Attorney.
Durable v. Non-Durable Power of Attorney
First, a Durable Power of Attorney is one that stays valid, if you later become incapacitated. A non-durable power of attorney expires if you become incapacitated later. This difference is very important.
Second, Power of Attorney documents and forms expire at death. You can’t create one if you are incompetent. You must remember these as most people are not aware that you cannot engage in financial transactions after death with a power of attorney. Your Financial Power of Attorney should be durable, if you want it to continue to work.
How can you restrict a power of attorney?
You can limit several things by the language you put in your power of attorney:
- You can specify if your co-agents must act together, or can act alone. This can be a problem with most banks.
- You can specify the powers you are giving your agent. You can also take away powers.
- You can restrict the term of the power of attorney. For example, you can say that the power of attorney is value for only a few months or a few years. The term is completely up to you. If you don’t limit the term, it goes on till you pass away.
- You can restrict your agent from gifting to himself, or to others. You should really consider this if you have children who may gift to themselves.
- You can require an accounting in your power of attorney, or state that it is not needed.
- You can require that your agent post a bond.
- You can also limit the compensation of your agent to a certain hourly rate.
Talk to Mina Sirkin about your Financial Power of Attorney, and how you can restrict the use of a Durable Power of attorney. Call our attorney at 818.340.4479 for a free consultation appointment about power of attorney documents. Email us: [email protected]