Durable Power of Attorney | Mission Viejo Estate Planning Attorney

A Durable Power of Attorney (DPOA) is a legal document that gives someone you trust the authority to make financial decisions on your behalf if you are unable to do so yourself. For California residents, especially those in Mission Viejo and throughout South Orange County, this document is a key part of a foundational estate plan.

Without it, your family may be left scrambling to manage your affairs if you become incapacitated or ill.

However, when used alone it can still leave you vulnerable. This is why a Durable Power of attorney is just one document found within a comprehensive foundational estate plan. Click here to learn more about what a foundational estate plan is.

What Is a Durable Power of Attorney?

A Durable Power of Attorney allows you to designate an agent (sometimes called an “attorney-in-fact”) to act on your behalf in managing financial and property matters. Unlike a standard power of attorney, a durable version remains in effect even if you become incapacitated, ensuring continuity and protection for your affairs.

Examples of what your agent can handle include:

• Paying bills and managing bank accounts

• Handling investment or retirement accounts

• Buying, selling, or managing real estate

• Overseeing business interests

Why Every Adult Needs a Durable Power of Attorney

Even if you’re young and healthy, life is unpredictable. If an accident or illness leaves you unable to manage your finances, your bills, mortgage, and daily obligations could quickly spiral out of control.

Having a Durable Power of Attorney in place ensures:

• Financial continuity during incapacity

• Peace of mind for you and your loved ones

• Avoidance of court intervention (such as a costly conservatorship)

It’s not just a safety net—it’s an essential part of responsible planning.

Types of Powers of Attorney:

Different powers of attorney serve different purposes. Common types include:

• Durable Power of Attorney – Survives incapacity, continues if you cannot act.

• General Power of Attorney – Broad authority over property and assets, but may end upon incapacity (if it is not "Durable").

• Limited Power of Attorney – Restricted to specific matters, such as selling real estate.

• Healthcare Power of Attorney – Typically referred to as an Advance Health Care Directive in California, covering medical decision-making.

When Does a Power of Attorney Become Effective?

When drafting your DPOA, you decide how and when it becomes effective:

• Immediate (Shifting): Authority transfers to your agent right away.

• Springing: Authority only “springs” into effect upon a specific event, usually incapacity.

Neither option is inherently better; it depends on your goals and comfort level and both have their uses.

The Risk of Not Planning Ahead

Hidden costs of not having a Durable Power of Attorney in Mission Viejo

Without a Durable Power of Attorney, your loved ones may be forced to pursue a conservatorship through the probate court if you become incapacitated. This court process is the only way they can legally gain access to your financial accounts—and it is neither quick nor inexpensive.

Having represented clients in conservatorship proceedings here in Orange County, I can tell you that being proactive with planning is a fraction of the cost. Conservatorships regularly exceed $10,000 in legal fees and add unnecessary stress during an already difficult time.

⚖️ Attorney’s Insight:

The Real Cost of Not Having a Durable Power of Attorney

In my experience representing families in Mission Viejo and Orange County, the absence of a DPOA often forces loved ones into conservatorship proceedings. These cases regularly exceed $10,000 in legal fees and cause months of unnecessary stress during an already difficult time. By planning ahead with a DPOA, you can spare your family those costs, avoid court involvement, and stay in control of who makes financial decisions on your behalf.

Durable Power of Attorney vs. Advance Health Care Directive

These two documents are often confused but serve very different purposes:

• Durable Power of Attorney (DPOA): Covers financial and property decisions.

• Advance Health Care Directive (AHCD): Covers medical and end-of-life decisions.

Without an Advance Health Care Directive in place, your loved ones may face disputes—or even be forced to petition the court—to determine who has the legal authority to make medical decisions on your behalf. I’ve seen families in Mission Viejo and throughout Orange County struggle when no directive is in place.

By contrast, putting a Durable Power of Attorney in place now keeps you in control of who makes decisions for you—rather than leaving that decision to a judge.

Since you are a legal adult, unless you are married and your spouse is able to act, someone will have to petition the court to make those decisions for you. At a minimum, this process is expensive, but it can also open the door to conflict and infighting among family members over who should be appointed. The result? Delays in treatment and added emotional strain during an already difficult medical crisis.

⚖️ Attorney’s Insight: Why an Advance Health Care Directive Matters.I’ve seen families in Mission Viejo and Orange County forced into court because no Advance Health Care Directive was in place. Without one, the process can cost thousands in legal fees and cause painful disputes among loved ones over who should make decisions. By creating this document ahead of time, you spare your family conflict, expense, and delays in medical care.

By contrast, creating an AHCD allows you to clearly spell out your wishes and choose a trusted person to speak for you if you cannot. It avoids conflict, prevents court involvement, and provides peace of mind for both you and your loved ones.

A complete estate plan in California should always include both.

How to Choose the Right Agent

The most important decision in creating a Durable Power of Attorney is who you choose as your agent. This person will have broad authority over your financial matters, so trustworthiness is critical.

Tips for choosing an agent:

• Select someone financially responsible and reliable.

• Consider naming a backup (successor agent).

• Discuss your wishes openly with your chosen agent(s).

Choosing the wrong person can be disastrous—as pop culture has shown. In Rocky V, Rocky Balboa loses his fortune after giving a bad agent too much power. While fictional, this has happened countless times and it’s a good reminder that poor choices can have real-life consequences.

The Risk of Not Planning Ahead

Hidden costs of not having a durable power of attorney in Mission Viejo

Without a Durable Power of Attorney, your loved ones may be forced to pursue a conservatorship through the probate court if you become incapacitated. This court process is the only way they can legally gain access to your financial accounts—and it is neither quick nor inexpensive.

Having represented clients in conservatorship proceedings here in Orange County, I can tell you that being proactive with planning is a fraction of the cost. Conservatorships regularly exceed $10,000 in legal fees and add unnecessary stress during an already difficult time.

By contrast, putting a Durable Power of Attorney in place now keeps you in control of who makes decisions for you—rather than leaving that decision to a judge.

Next Steps: Protect Your Future Today

A Durable Power of Attorney is not a standalone solution—it should be part of a comprehensive estate plan that includes a living trust, will, and advance health care directive.

At Gipe Law, P.C., we help individuals and families in Mission Viejo and throughout South Orange County design estate plans that provide security, clarity, and peace of mind.

Ready to take the next step? Schedule a consultation today to get started on your estate plan.

Schedule a Consultation

Still researching? You may also find our article helpful: What Is a Foundational Estate Plan—and Why Every Family Needs One.