Torrance Lawyers for Power of Attorney

Dedicated Powers of Attorney Lawyer Assisting Clients in Torrance, California

Estate planning can address much more than what will happen to a person's property after their death. A person and their loved ones can also prepare for the possibility that they may one day be unable to manage their own affairs due to issues such as serious illnesses, major injuries, or the decline of their cognitive abilities. Without the right legal documents in place, an estate plan can leave critical gaps, and family members may be forced to spend time and money establishing a conservatorship.

A power of attorney is one of the most important tools that can address these gaps. It gives a trusted person the legal authority to act on another person's behalf when handling financial or legal matters. This can help ensure that important decisions can be made even when a person is no longer able to handle these matters on their own.

At the Law Offices of Russell M. Ozawa, our attorney helps families in Torrance create powers of attorney that will meet their needs while integrating into their estate plans. With his help, clients can make sure the people they trust will have the ability to act on their behalf when the time comes.

Why Powers of Attorney Are an Essential Part of Estate Planning

Many people assume that a spouse or close family member will automatically be given the authority to manage their financial affairs in an emergency. This assumption is incorrect. Without a valid power of attorney, no family member will have the automatic legal right to access a person's bank accounts, pay bills, or handle other financial matters.

When a person becomes incapacitated without a power of attorney in place, the only way for a family member to obtain legal authority to manage that person's affairs is through a court-supervised conservatorship proceeding. A petition for conservatorship will need to be filed with the court, notice will need to be provided to family members, hearings will be held to determine whether conservatorship is necessary, and a conservator will operate under ongoing court oversight. This process can take months, and it can be expensive while placing legal burdens on family members who are trying to provide care for a loved one.

A power of attorney will eliminate the need for conservatorship in most cases. It allows a person to decide exactly who will have the authority to act on their behalf and under what circumstances, without requiring any court involvement.

Financial Matters a Power of Attorney Can Address

A financial power of attorney can grant authority over a wide range of matters. The person given authority, who is known as an agent, may be able to address multiple types of issues on behalf of the person who needs assistance, who is known as the principal. These issues may include:

• Banking and Financial Account Management: An agent with authority over banking matters can access the principal's bank accounts, make deposits and withdrawals, pay bills, transfer funds, and manage financial obligations. This can ensure that mortgage payments, utility bills, insurance premiums, and other recurring expenses will be paid on time.
• Real Estate Transactions: A power of attorney can authorize an agent to manage the principal's property, including collecting rental income, paying expenses, refinancing mortgages, or even buying and selling real estate on the principal's behalf. This authority can be essential to ensure that the value of assets will be preserved.
• Investment and Asset Management: An agent may be granted authority to manage investment accounts, make decisions about the purchase and sale of securities, and take other steps to maintain and grow the principal's financial portfolio.
• Tax Matters: A power of attorney can authorize an agent to prepare and file tax returns, pay taxes, and handle other tax-related matters on the principal's behalf.
• Business Operations: When the principal owns or operates a business, a power of attorney can provide an agent with the authority needed to keep that business running. The agent may be authorized to manage business accounts, sign contracts, pay employees, and take other actions that are necessary to maintain business operations.
• Government Benefits: An agent may also be authorized to apply for and manage government benefits on the principal's behalf, including Social Security, Medicare, and Medi-Cal. This authority can be important for older adults or people with serious health conditions who may need to ensure that they will receive benefits and address their needs.

General Power of Attorney

With a general power of attorney, an agent will have broad authority to act on the principal's behalf as they address financial matters and related concerns. This type of document may be used when a principal needs someone to handle their affairs during a specific period. For example, while a person is traveling abroad or recovering from a planned medical procedure, they may give someone they trust the authority to handle certain financial issues.

Durable Power of Attorney

A durable power of attorney includes specific language stating that the agent will continue to have authority even in a situation where the principal is incapacitated and cannot make decisions on their own. This durability provision can ensure that an agent will have decision-making authority when it is needed most.

An immediate durable power of attorney will take effect as soon as it is signed, and it will remain in effect until the principal revokes it or passes away. This type of document may be appropriate for people who want their agent to have immediate authority and who trust that their agent will exercise their authority responsibly.

A springing power of attorney will take effect only after a specified event. In most cases, the principal's incapacity will be the event that will grant authority to their agent. This can ensure that a person will have someone they trust handling their affairs in an emergency. Our attorney can help clients determine which approach will fit their circumstances and provide them with the assistance they need at the right time.

Contact Our Torrance, CA Power of Attorney Lawyer

When you put a power of attorney in place, you are taking steps to protect yourself and the people who depend on you. At the Law Offices of Russell M. Ozawa, our lawyer will make sure you understand your options and will have the documents in place to meet your needs. In addition to creating a power of attorney that will address financial matters, he can also assist with advance health care directives that will provide an agent with the authority to make medical decisions and address related concerns. Contact our Torrance power of attorney lawyer at 626-499-4500 to set up a free consultation today.