Some states combine a POA and a living will. In California, the form is currently called the Advance Health Care Directive and has five parts. Part one names your agent for health care, while part two is for instructions. Part three covers your options regarding organ donation, and part four lets you designate a physician to make decisions. The last part is the witness and signature provisions. Any part of this form can be omitted or included as long as it includes part five.
Durable Power of Attorney for Financial Matters covers your finances. You might allow the agent to manage your retirement accounts or file your income taxes. When you designate a financial agent or POA, you typically may give them as much or as little authority as you want. Your agent is legally required to act in your best interests. They are required to keep your assets separate from their own and don’t have authority to do whatever they wish.
The process to set up a financial POA varies by state, but most require a notarized signature. The agent is also required to sign paperwork acknowledging their awareness and understanding of their power and restrictions to act.
Some states require POAs to be recorded with local government authorities before the agent can act regarding real estate transactions. A durable POA for financial matters may be generally revoked at any time before the person granting it becomes incapacitated. It automatically ends when the person who granted it dies.