Section § 4230

Explanation

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.

(a)CA Probate Code § 4230(a) Except as provided in subdivisions (b) and (c), a person who is designated as an attorney-in-fact has no duty to exercise the authority granted in the power of attorney and is not subject to the other duties of an attorney-in-fact, regardless of whether the principal has become incapacitated, is missing, or is otherwise unable to act.
(b)CA Probate Code § 4230(b) Acting for the principal in one or more transactions does not obligate an attorney-in-fact to act for the principal in a subsequent transaction, but the attorney-in-fact has a duty to complete a transaction that the attorney-in-fact has commenced.
(c)CA Probate Code § 4230(c) If an attorney-in-fact has expressly agreed in writing to act for the principal, the attorney-in-fact has a duty to act pursuant to the terms of the agreement. The agreement to act on behalf of the principal is enforceable against the attorney-in-fact as a fiduciary regardless of whether there is any consideration to support a contractual obligation.

Section § 4231

Explanation

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.

(a)CA Probate Code § 4231(a) Except as provided in subdivision (b), in dealing with property of the principal, an attorney-in-fact shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries.
(b)CA Probate Code § 4231(b) An attorney-in-fact who has special skills or expertise or was designated as an attorney-in-fact on the basis of representations of special skills or expertise shall observe the standard of care that would be observed by others with similar skills or expertise.

Section § 4231.5

Explanation

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.

(a)CA Probate Code § 4231.5(a) If the attorney-in-fact breaches a duty pursuant to this division, the attorney-in-fact is chargeable with any of the following, as appropriate under the circumstances:
(1)CA Probate Code § 4231.5(a)(1) Any loss or depreciation in value of the principal’s property resulting from the breach of duty, with interest.
(2)CA Probate Code § 4231.5(a)(2) Any profit made by the attorney-in-fact through the breach of duty, with interest.
(3)CA Probate Code § 4231.5(a)(3) Any profit that would have accrued to the principal if the loss of profit is the result of the breach of duty.
(b)CA Probate Code § 4231.5(b) If the attorney-in-fact has acted reasonably and in good faith under the circumstances as known to the attorney-in-fact, the court, in its discretion, may excuse the attorney-in-fact in whole or in part from liability under subdivision (a) if it would be equitable to do so.
(c)CA Probate Code § 4231.5(c) If a court finds that a person has in bad faith wrongfully taken, concealed, or disposed of property that belongs to a principal under a power of attorney, or has taken, concealed, or disposed of property that belongs to a principal under a power of attorney by the use of undue influence in bad faith or through the commission of elder or dependent adult financial abuse, as defined in Section 15610.30 of the Welfare and Institutions Code, the person shall be liable for twice the value of the property recovered by an action to recover the property or for surcharge. In addition, except as otherwise required by law, including Section 15657.5 of the Welfare and Institutions Code, the person may, in the court’s discretion, be liable for reasonable attorney’s fees and costs to the prevailing party. The remedies provided in this section shall be in addition to any other remedies available in law to the principal or any successor in interest of the principal.

Section § 4232

Explanation

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.

(a)CA Probate Code § 4232(a) An attorney-in-fact has a duty to act solely in the interest of the principal and to avoid conflicts of interest.
(b)CA Probate Code § 4232(b) An attorney-in-fact is not in violation of the duty provided in subdivision (a) solely because the attorney-in-fact also benefits from acting for the principal, has conflicting interests in relation to the property, care, or affairs of the principal, or acts in an inconsistent manner regarding the respective interests of the principal and the attorney-in-fact.

Section § 4233

Explanation

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.

(a)CA Probate Code § 4233(a) The attorney-in-fact shall keep the principal’s property separate and distinct from other property in a manner adequate to identify the property clearly as belonging to the principal.
(b)CA Probate Code § 4233(b) An attorney-in-fact holding property for a principal complies with subdivision (a) if the property is held in the name of the principal or in the name of the attorney-in-fact as attorney-in-fact for the principal.

Section § 4234

Explanation

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.

(a)CA Probate Code § 4234(a) To the extent reasonably practicable under the circumstances, an attorney-in-fact has a duty to keep in regular contact with the principal, to communicate with the principal, and to follow the instructions of the principal.
(b)CA Probate Code § 4234(b) With court approval, the attorney-in-fact may disobey instructions of the principal.

Section § 4235

Explanation

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.

If the principal becomes wholly or partially incapacitated, or if there is a question concerning the capacity of the principal to give instructions to and supervise the attorney-in-fact, the attorney-in-fact may consult with a person previously designated by the principal for this purpose, and may also consult with and obtain information needed to carry out the attorney-in-fact’s duties from the principal’s spouse, physician, attorney, accountant, a member of the principal’s family, or other person, business entity, or government agency with respect to matters to be undertaken on the principal’s behalf and affecting the principal’s personal affairs, welfare, family, property, and business interests. A person from whom information is requested shall disclose relevant information to the attorney-in-fact. Disclosure under this section is not a waiver of any privilege that may apply to the information disclosed.

Section § 4236

Explanation

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.

(a)CA Probate Code § 4236(a) The attorney-in-fact shall keep records of all transactions entered into by the attorney-in-fact on behalf of the principal.
(b)CA Probate Code § 4236(b) The attorney-in-fact does not have a duty to make an account of transactions entered into on behalf of the principal, except in the following circumstances:
(1)CA Probate Code § 4236(b)(1) At any time requested by the principal.
(2)CA Probate Code § 4236(b)(2) Where the power of attorney requires the attorney-in-fact to account and specifies to whom the account is to be made.
(3)CA Probate Code § 4236(b)(3) On request by the conservator of the estate of the principal while the principal is living.
(4)CA Probate Code § 4236(b)(4) On request by the principal’s personal representative or successor in interest after the death of the principal.
(5)CA Probate Code § 4236(b)(5) Pursuant to court order.
(c)CA Probate Code § 4236(c) The following persons are entitled to examine and copy the records kept by the attorney-in-fact:
(1)CA Probate Code § 4236(c)(1) The principal.
(2)CA Probate Code § 4236(c)(2) The conservator of the estate of the principal while the principal is living.
(3)CA Probate Code § 4236(c)(3) The principal’s personal representative or successor in interest after the death of the principal.
(4)CA Probate Code § 4236(c)(4) Any other person, pursuant to court order.
(d)CA Probate Code § 4236(d) This section is not subject to limitation in the power of attorney.

Section § 4237

Explanation

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.

An attorney-in-fact with special skills has a duty to apply the full extent of those skills.

Section § 4238

Explanation

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.

(a)CA Probate Code § 4238(a) On termination of an attorney-in-fact’s authority, the attorney-in-fact shall promptly deliver possession or control of the principal’s property as follows:
(1)CA Probate Code § 4238(a)(1) If the principal is not incapacitated, to the principal or as directed by the principal.
(2)CA Probate Code § 4238(a)(2) If the principal is incapacitated, to the following persons with the following priority:
(A)CA Probate Code § 4238(a)(2)(A) To a qualified successor attorney-in-fact.
(B)CA Probate Code § 4238(a)(2)(B) As to any community property, to the principal’s spouse.
(C)CA Probate Code § 4238(a)(2)(C) To the principal’s conservator of the estate or guardian of the estate.
(3)CA Probate Code § 4238(a)(3) In the case of the death of the principal, to the principal’s personal representative, if any, or the principal’s successors.
(b)CA Probate Code § 4238(b) On termination of an attorney-in-fact’s authority, the attorney-in-fact shall deliver copies of any records relating to transactions undertaken on the principal’s behalf that are requested by the person to whom possession or control of the property is delivered.
(c)CA Probate Code § 4238(c) Termination of an attorney-in-fact’s authority does not relieve the attorney-in-fact of any duty to render an account of actions taken as attorney-in-fact.
(d)CA Probate Code § 4238(d) The attorney-in-fact has the powers reasonably necessary under the circumstances to perform the duties provided by this section.