Attorneys-in-factDuties of Attorneys-in-fact
Section § 4230
This law explains the responsibilities of someone chosen to act on another person's behalf, known as an attorney-in-fact, under a power of attorney. Generally, they aren't required to do anything unless they've agreed to or started a specific action. If they agree in writing to handle the principal's affairs, they must follow through as promised. Once they start helping with a transaction, they must finish it. Their duties and responsibilities are binding even if they don't receive anything in return.
Section § 4231
In California, an attorney-in-fact, which is someone authorized to act on behalf of another person, must manage that person's property carefully, like a reasonable person would handle someone else's property. Normally, there aren't strict investment rules they have to follow.
However, if the attorney-in-fact has special skills or claimed to have special skills, they have to meet the standards expected of professionals with similar abilities.
Section § 4231.5
This section outlines the consequences for an attorney-in-fact (someone given authority to act for another person) if they fail in their responsibilities. If they breach their duty, they can be held liable for any losses or lost profits they cause or for any profits they unjustly made, including interest. However, if they acted reasonably and in good faith based on the information they had, a court might reduce or waive their liability if it seems fair to do so.
If someone deliberately misuses or hides the principal's property through bad faith actions, undue influence, or financial abuse of an elderly or dependent adult, they must pay twice the property's value recovered and possibly the opponent's legal fees. These penalties are additional to any other legal remedies available to the principal or their successors.
Section § 4232
This law explains the responsibilities and boundaries for an 'attorney-in-fact,' who is someone appointed to act on behalf of another person (the principal). The attorney-in-fact must prioritize the principal's interests and avoid conflicts of interest. However, they aren't automatically breaking this rule if they incidentally benefit from their role or have other interests that might conflict with the principal's, as long as their actions primarily serve the principal.
Section § 4233
This law requires that an attorney-in-fact, someone appointed to manage another person's affairs, must keep the principal's (person who appointed them) property separate from their own or anyone else's. This ensures the property is easily identifiable as belonging to the principal.
The attorney-in-fact meets this requirement if the property is held in either the principal's name or in their own name as the attorney-in-fact for the principal.
Section § 4234
This law states that an attorney-in-fact, who is someone appointed to make decisions for another person, must try their best to stay in touch with and follow the instructions of the person they represent. However, if they get permission from a court, they can legally ignore these instructions.
Section § 4235
This law says that if a person who appointed an attorney-in-fact (a person authorized to act on someone else's behalf) becomes fully or partially unable to make decisions, the attorney-in-fact can talk to someone the principal picked ahead of time for advice. They can also gather information needed to fulfill their duties from the principal's spouse, doctor, lawyer, accountant, family members, or other relevant people or organizations. Anyone who is asked for information has to provide it, but sharing this information doesn’t mean giving up any legal protections on privacy that apply to it.
Section § 4236
An attorney-in-fact must keep records of all actions they take on behalf of the person who gave them that power. They don't have to provide these records unless certain conditions apply, such as if the principal requests them or if the power of attorney specifically requires it. Other situations include requests from the principal's conservator or representatives after death, and court orders. Certain people, like the principal or their representatives, have the right to look at and copy these records. This rule cannot be changed by the power of attorney.
Section § 4237
If someone is acting as an attorney-in-fact and has special skills or expertise, they must use all of those skills when fulfilling their duties.
Section § 4238
This law outlines what happens when an attorney-in-fact's authority ends. If the person who gave them authority (the principal) is able to make decisions, the attorney-in-fact must return the principal's property to them or follow their instructions. If the principal can't make decisions, the property goes to a new attorney-in-fact, the principal's spouse if it's community property, or their estate conservator. If the principal has passed away, property goes to their personal representative or successors.
The attorney-in-fact must also hand over any transaction records if requested by the person receiving the property. Even after their authority ends, the attorney-in-fact must still properly account for their actions. They are allowed to do what's necessary to finish their duties under this law.