How does a financial power of attorney work in California?

It appoints an agent to handle financial affairs (banking, property, taxes) under the Power of Attorney Law, Probate Code section 4000 et seq. California publishes a statutory form at Probate Code section 4401. To survive the principal's later incapacity, the document must state that it is durable, and it always ends at death.

A financial power of attorney lets a chosen agent manage money and property (banking, bill paying, real estate, taxes, benefits) under California's Power of Attorney Law, Probate Code section 4000 et seq. The Legislature publishes a fill-in statutory form at Probate Code section 4401 that financial institutions recognize; execution requires the principal's signature plus either notarization or two adult witnesses, and notarization is needed in practice for anything that must be recorded against real estate. Two design choices matter most. A power is durable (meaning it keeps working after the principal loses capacity, which is usually the point) only if the document says so, per Probate Code section 4124. And it can take effect immediately or spring into effect upon incapacity, determined however the document specifies. The agent is a fiduciary who must act in the principal's interest and keep records, and every power of attorney terminates at the principal's death, when the will or trust takes over.

Authority: Cal. Prob. Code § 4401