SECTIONS 4450-4465 - California Statutes

PROBATE CODE

SECTION 4450-4465

4450. By executing a statutory form power of attorney with respect
to a subject listed in Section 4401, the principal, except as limited
or extended by the principal in the power of attorney, empowers the
agent, for that subject, to do all of the following:
(a) Demand, receive, and obtain by litigation or otherwise, money
or other thing of value to which the principal is, may become, or
claims to be entitled, and conserve, invest, disburse, or use
anything so received for the purposes intended.
(b) Contract in any manner with any person, on terms agreeable to
the agent, to accomplish a purpose of a transaction, and perform,
rescind, reform, release, or modify the contract or another contract
made by or on behalf of the principal.
(c) Execute, acknowledge, seal, and deliver a deed, revocation,
mortgage, lease, notice, check, release, or other instrument the
agent considers desirable to accomplish a purpose of a transaction.
(d) Prosecute, defend, submit to arbitration, settle, and propose
or accept a compromise with respect to, a claim existing in favor of
or against the principal or intervene in litigation relating to the
claim.
(e) Seek on the principal's behalf the assistance of a court to
carry out an act authorized by the power of attorney.
(f) Engage, compensate, and discharge an attorney, accountant,
expert witness, or other assistant.
(g) Keep appropriate records of each transaction, including an
accounting of receipts and disbursements.
(h) Prepare, execute, and file a record, report, or other document
the agent considers desirable to safeguard or promote the principal'
s interest under a statute or governmental regulation.
(i) Reimburse the agent for expenditures properly made by the
agent in exercising the powers granted by the power of attorney.
(j) In general, do any other lawful act with respect to the
subject.

4451. In a statutory form power of attorney, the language granting
power with respect to real property transactions empowers the agent
to do all of the following:
(a) Accept as a gift or as security for a loan, reject, demand,
buy, lease, receive, or otherwise acquire, an interest in real
property or a right incident to real property.
(b) Sell, exchange, convey with or without covenants, quitclaim,
release, surrender, mortgage, encumber, partition, consent to
partitioning, subdivide, apply for zoning, rezoning, or other
governmental permits, plat or consent to platting, develop, grant
options concerning, lease, sublease, or otherwise dispose of, an
interest in real property or a right incident to real property.
(c) Release, assign, satisfy, and enforce by litigation or
otherwise, a mortgage, deed of trust, encumbrance, lien, or other
claim to real property which exists or is asserted.
(d) Do any act of management or of conservation with respect to an
interest in real property, or a right incident to real property,
owned, or claimed to be owned, by the principal, including all of the
following:
(1) Insuring against a casualty, liability, or loss.
(2) Obtaining or regaining possession, or protecting the interest
or right, by litigation or otherwise.
(3) Paying, compromising, or contesting taxes or assessments, or
applying for and receiving refunds in connection with them.
(4) Purchasing supplies, hiring assistance or labor, and making
repairs or alterations in the real property.
(e) Use, develop, alter, replace, remove, erect, or install
structures or other improvements upon real property in or incident to
which the principal has, or claims to have, an interest or right.
(f) Participate in a reorganization with respect to real property
or a legal entity that owns an interest in or right incident to real
property and receive and hold shares of stock or obligations received
in a plan of reorganization, and act with respect to them, including
all of the following:
(1) Selling or otherwise disposing of them.
(2) Exercising or selling an option, conversion, or similar right
with respect to them.
(3) Voting them in person or by proxy.
(g) Change the form of title of an interest in or right incident
to real property.
(h) Dedicate to public use, with or without consideration,
easements or other real property in which the principal has, or
claims to have, an interest or right.

4452. In a statutory form power of attorney, the language granting
power with respect to tangible personal property transactions
empowers the agent to do all of the following:
(a) Accept as a gift or as security for a loan, reject, demand,
buy, receive, or otherwise acquire ownership or possession of
tangible personal property or an interest in tangible personal
property.
(b) Sell, exchange, convey with or without covenants, release,
surrender, mortgage, encumber, pledge, hypothecate, create a security
interest in, pawn, grant options concerning, lease, sublease to
others, or otherwise dispose of tangible personal property or an
interest in tangible personal property.
(c) Release, assign, satisfy, or enforce by litigation or
otherwise, a mortgage, security interest, encumbrance, lien, or other
claim on behalf of the principal, with respect to tangible personal
property or an interest in tangible personal property.
(d) Do an act of management or conservation with respect to
tangible personal property or an interest in tangible personal
property on behalf of the principal, including all of the following:
(1) Insuring against casualty, liability, or loss.
(2) Obtaining or regaining possession, or protecting the property
or interest, by litigation or otherwise.
(3) Paying, compromising, or contesting taxes or assessments or
applying for and receiving refunds in connection with taxes or
assessments.
(4) Moving from place to place.
(5) Storing for hire or on a gratuitous bailment.
(6) Using, altering, and making repairs or alterations.

4453. In a statutory form power of attorney, the language granting
power with respect to stock and bond transactions empowers the agent
to do all of the following:
(a) Buy, sell, and exchange stocks, bonds, mutual funds, and all
other types of securities and financial instruments except commodity
futures contracts and call and put options on stocks and stock
indexes.
(b) Receive certificates and other evidences of ownership with
respect to securities.
(c) Exercise voting rights with respect to securities in person or
by proxy, enter into voting trusts, and consent to limitations on
the right to vote.

4454. In a statutory form power of attorney, the language granting
power with respect to commodity and option transactions empowers the
agent to do all of the following:
(a) Buy, sell, exchange, assign, settle, and exercise commodity
futures contracts and call and put options on stocks and stock
indexes traded on a regulated option exchange.
(b) Establish, continue, modify, and terminate option accounts
with a broker.

4455. In a statutory form power of attorney, the language granting
power with respect to banking and other financial institution
transactions empowers the agent to do all of the following:
(a) Continue, modify, and terminate an account or other banking
arrangement made by or on behalf of the principal.
(b) Establish, modify, and terminate an account or other banking
arrangement with a bank, trust company, savings and loan association,
credit union, thrift company, industrial loan company, brokerage
firm, or other financial institution selected by the agent.
(c) Hire or close a safe deposit box or space in a vault.
(d) Contract to procure other services available from a financial
institution as the agent considers desirable.
(e) Withdraw by check, order, or otherwise money or property of
the principal deposited with or left in the custody of a financial
institution.
(f) Receive bank statements, vouchers, notices, and similar
documents from a financial institution and act with respect to them.
(g) Enter a safe deposit box or vault and withdraw or add to the
contents.
(h) Borrow money at an interest rate agreeable to the agent and
pledge as security personal property of the principal necessary in
order to borrow, pay, renew, or extend the time of payment of a debt
of the principal.
(i) Make, assign, draw, endorse, discount, guarantee, and
negotiate promissory notes, checks, drafts, and other negotiable or
nonnegotiable paper of the principal, or payable to the principal or
the principal's order, receive the cash or other proceeds of those
transactions, and accept a draft drawn by a person upon the principal
and pay it when due.
(j) Receive for the principal and act upon a sight draft,
warehouse receipt, or other negotiable or nonnegotiable instrument.
(k) Apply for and receive letters of credit, credit cards, and
traveler's checks from a financial institution, and give an indemnity
or other agreement in connection with letters of credit.
(l) Consent to an extension of the time of payment with respect to
commercial paper or a financial transaction with a financial
institution.

4456. In a statutory form power of attorney, the language granting
power with respect to business operating transactions empowers the
agent to do all of the following:
(a) Operate, buy, sell, enlarge, reduce, and terminate a business
interest.
(b) To the extent that an agent is permitted by law to act for a
principal and subject to the terms of the partnership agreement:
(1) Perform a duty or discharge a liability and exercise a right,
power, privilege, or option that the principal has, may have, or
claims to have, under a partnership agreement, whether or not the
principal is a partner.
(2) Enforce the terms of a partnership agreement by litigation or
otherwise.
(3) Defend, submit to arbitration, settle, or compromise
litigation to which the principal is a party because of membership in
the partnership.
(c) Exercise in person or by proxy, or enforce by litigation or
otherwise, a right, power, privilege, or option the principal has or
claims to have as the holder of a bond, share, or other instrument of
similar character, and defend, submit to arbitration, settle, or
compromise litigation to which the principal is a party because of a
bond, share, or similar instrument.
(d) With respect to a business owned solely by the principal:
(1) Continue, modify, renegotiate, extend, and terminate a
contract made with an individual or a legal entity, firm,
association, or corporation by or on behalf of the principal with
respect to the business before execution of the power of attorney.
(2) Determine the policy of the business as to (A) the location of
its operation, (B) the nature and extent of its business, (C) the
methods of manufacturing, selling, merchandising, financing,
accounting, and advertising employed in its operation, (D) the amount
and types of insurance carried, and (E) the mode of engaging,
compensating, and dealing with its accountants, attorneys, and other
agents and employees.
(3) Change the name or form of organization under which the
business is operated and enter into a partnership agreement with
other persons or organize a corporation to take over all or part of
the operation of the business.
(4) Demand and receive money due or claimed by the principal or on
the principal's behalf in the operation of the business, and control
and disburse the money in the operation of the business.
(e) Put additional capital into a business in which the principal
has an interest.
(f) Join in a plan of reorganization, consolidation, or merger of
the business.
(g) Sell or liquidate a business or part of it at the time and
upon the terms the agent considers desirable.
(h) Represent the principal in establishing the value of a
business under a buy-out agreement to which the principal is a party.
(i) Prepare, sign, file, and deliver reports, compilations of
information, returns, or other papers with respect to a business
which are required by a governmental agency or instrumentality or
which the agent considers desirable, and make related payments.
(j) Pay, compromise, or contest taxes or assessments and do any
other act which the agent considers desirable to protect the
principal from illegal or unnecessary taxation, fines, penalties, or
assessments with respect to a business, including attempts to
recover, in any manner permitted by law, money paid before or after
the execution of the power of attorney.

4457. In a statutory form power of attorney, the language granting
power with respect to insurance and annuity transactions empowers the
agent to do all of the following:
(a) Continue, pay the premium or assessment on, modify, rescind,
release, or terminate a contract procured by or on behalf of the
principal which insures or provides an annuity to either the
principal or another person, whether or not the principal is a
beneficiary under the contract.
(b) Procure new, different, and additional contracts of insurance
and annuities for the principal and the principal's spouse, children,
and other dependents, and select the amount, type of insurance or
annuity, and mode of payment.
(c) Pay the premium or assessment on, modify, rescind, release, or
terminate a contract of insurance or annuity procured by the agent.
(d) Designate the beneficiary of the contract, but the agent may
be named a beneficiary of the contract, or an extension, renewal, or
substitute for it, only to the extent the agent was named as a
beneficiary under a contract procured by the principal before
executing the power of attorney.
(e) Apply for and receive a loan on the security of the contract
of insurance or annuity.
(f) Surrender and receive the cash surrender value.
(g) Exercise an election.
(h) Change the manner of paying premiums.
(i) Change or convert the type of insurance contract or annuity as
to any insurance contract or annuity with respect to which the
principal has or claims to have a power described in this section.
(j) Change the beneficiary of a contract of insurance or annuity,
but the agent may not be designated a beneficiary except to the
extent permitted by subdivision (d).
(k) Apply for and procure government aid to guarantee or pay
premiums of a contract of insurance on the life of the principal.
(l) Collect, sell, assign, hypothecate, borrow upon, or pledge the
interest of the principal in a contract of insurance or annuity.
(m) Pay from proceeds or otherwise, compromise or contest, and
apply for refunds in connection with, a tax or assessment levied by a
taxing authority with respect to a contract of insurance or annuity
or its proceeds or liability accruing by reason of the tax or
assessment.

4458. In a statutory form power of attorney, the language granting
power with respect to estate, trust, and other beneficiary
transactions, empowers the agent to act for the principal in all
matters that affect a trust, probate estate, guardianship,
conservatorship, escrow, custodianship, or other fund from which the
principal is, may become, or claims to be entitled, as a beneficiary,
to a share or payment, including the power to do all of the
following:
(a) Accept, reject, disclaim, receive, receipt for, sell, assign,
release, pledge, exchange, or consent to a reduction in or
modification of a share in or payment from the fund.
(b) Demand or obtain by litigation or otherwise money or other
thing of value to which the principal is, may become, or claims to be
entitled by reason of the fund.
(c) Initiate, participate in, and oppose litigation to ascertain
the meaning, validity, or effect of a deed, will, declaration of
trust, or other instrument or transaction affecting the interest of
the principal.
(d) Initiate, participate in, and oppose litigation to remove,
substitute, or surcharge a fiduciary.
(e) Conserve, invest, disburse, and use anything received for an
authorized purpose.
(f) Transfer an interest of the principal in real property,
stocks, bonds, accounts with financial institutions, insurance, and
other property, to the trustee of a revocable trust created by the
principal as settlor.

4459. In a statutory form power of attorney, the language with
respect to claims and litigation empowers the agent to do all of the
following:
(a) Assert and prosecute before a court or administrative agency a
claim, claim for relief, cause of action, counterclaim,
cross-complaint, or offset, and defend against an individual, a legal
entity, or government, including suits to recover property or other
thing of value, to recover damages sustained by the principal, to
eliminate or modify tax liability, or to seek an injunction, specific
performance, or other relief.
(b) Bring an action to determine adverse claims, intervene in
litigation, and act as amicus curiae.
(c) In connection with litigation:
(1) Procure an attachment, garnishment, libel, order of arrest, or
other preliminary, provisional, or intermediate relief and use any
available procedure to effect, enforce, or satisfy a judgment, order,
or decree.
(2) Perform any lawful act, including acceptance of tender, offer
of judgment, admission of facts, submission of a controversy on an
agreed statement of facts, consent to examination before trial, and
binding the principal in litigation.
(d) Submit to arbitration, settle, and propose or accept a
compromise with respect to a claim or litigation.
(e) Waive the issuance and service of process upon the principal,
accept service of process, appear for the principal, designate
persons upon whom process directed to the principal may be served,
execute and file or deliver stipulations on the principal's behalf,
verify pleadings, seek appellate review, procure and give surety and
indemnity bonds, contract and pay for the preparation and printing of
records and briefs, receive and execute and file or deliver a
consent, waiver, release, confession of judgment, satisfaction of
judgment, notice, agreement, or other instrument in connection with
the prosecution, settlement, or defense of a claim or litigation.
(f) Act for the principal with respect to bankruptcy or insolvency
proceedings, whether voluntary or involuntary, concerning the
principal or some other person, or with respect to a reorganization
proceeding, or with respect to an assignment for the benefit of
creditors, receivership, or application for the appointment of a
receiver or trustee which affects an interest of the principal in
property or other thing of value.
(g) Pay a judgment against the principal or a settlement made in
connection with litigation and receive and conserve money or other
thing of value paid in settlement of or as proceeds of a claim or
litigation.

4460. In a statutory form power of attorney, the language granting
power with respect to personal and family maintenance empowers the
agent to do all of the following:
(a) Do the acts necessary to maintain the customary standard of
living of the principal, the principal's spouse, children, and other
individuals customarily or legally entitled to be supported by the
principal, including providing living quarters by purchase, lease, or
other contract, or paying the operating costs, including interest,
amortization payments, repairs, and taxes on premises owned by the
principal and occupied by those individuals.
(b) Provide for the individuals described in subdivision (a) all
of the following:
(1) Normal domestic help.
(2) Usual vacations and travel expenses.
(3) Funds for shelter, clothing, food, appropriate education, and
other current living costs.
(c) Pay for the individuals described in subdivision (a) necessary
medical, dental, and surgical care, hospitalization, and custodial
care.
(d) Continue any provision made by the principal, for the
individuals described in subdivision (a), for automobiles or other
means of transportation, including registering, licensing, insuring,
and replacing them.
(e) Maintain or open charge accounts for the convenience of the
individuals described in subdivision (a) and open new accounts the
agent considers desirable to accomplish a lawful purpose.
(f) Continue payments incidental to the membership or affiliation
of the principal in a church, club, society, order, or other
organization and continue contributions to those organizations.

4461. In a statutory form power of attorney, the language granting
power with respect to benefits from social security, medicare,
medicaid, or other governmental programs, or civil or military
service, empowers the agent to do all of the following:
(a) Execute vouchers in the name of the principal for allowances
and reimbursements payable by the United States or a foreign
government or by a state or subdivision of a state to the principal,
including allowances and reimbursements for transportation of the
individuals described in subdivision (a) of Section 4460, and for
shipment of their household effects.
(b) Take possession and order the removal and shipment of property
of the principal from a post, warehouse, depot, dock, or other place
of storage or safekeeping, either governmental or private, and
execute and deliver a release, voucher, receipt, bill of lading,
shipping ticket, certificate, or other instrument for that purpose.
(c) Prepare, file, and prosecute a claim of the principal to a
benefit or assistance, financial or otherwise, to which the principal
claims to be entitled, under a statute or governmental regulation.
(d) Prosecute, defend, submit to arbitration, settle, and propose
or accept a compromise with respect to any benefits the principal may
be entitled to receive.
(e) Receive the financial proceeds of a claim of the type
described in this section, conserve, invest, disburse, or use
anything received for a lawful purpose.

4462. In a statutory form power of attorney, the language granting
power with respect to retirement plan transactions empowers the agent
to do all of the following:
(a) Select payment options under any retirement plan in which the
principal participates, including plans for self-employed
individuals.
(b) Designate beneficiaries under those plans and change existing
designations.
(c) Make voluntary contributions to those plans.
(d) Exercise the investment powers available under any
self-directed retirement plan.
(e) Make rollovers of plan benefits into other retirement plans.
(f) If authorized by the plan, borrow from, sell assets to, and
purchase assets from the plan.
(g) Waive the right of the principal to be a beneficiary of a
joint or survivor annuity if the principal is a spouse who is not
employed.

4463. In a statutory form power of attorney, the language granting
power with respect to tax matters empowers the agent to do all of the
following:
(a) Prepare, sign, and file federal, state, local, and foreign
income, gift, payroll, Federal Insurance Contributions Act returns,
and other tax returns, claims for refunds, requests for extension of
time, petitions regarding tax matters, and any other tax-related
documents, including receipts, offers, waivers, consents (including
consents and agreements under Internal Revenue Code Section 2032A or
any successor section), closing agreements, and any power of attorney
required by the Internal Revenue Service or other taxing authority
with respect to a tax year upon which the statute of limitations has
not run and to the tax year in which the power of attorney was
executed and any subsequent tax year.
(b) Pay taxes due, collect refunds, post bonds, receive
confidential information, and contest deficiencies determined by the
Internal Revenue Service or other taxing authority.
(c) Exercise any election available to the principal under
federal, state, local, or foreign tax law.
(d) Act for the principal in all tax matters for all periods
before the Internal Revenue Service and any other taxing authority.

4464. The powers described in this chapter are exercisable equally
with respect to an interest the principal has when the statutory form
power of attorney is executed or acquires later, whether or not the
property is located in this state, and whether or not the powers are
exercised or the power of attorney is executed in this state.

4465. A statutory form power of attorney under this part does not
empower the agent to modify or revoke a trust created by the
principal unless that power is expressly granted by the power of
attorney. If a statutory form power of attorney under this part
empowers the agent to modify or revoke a trust created by the
principal, the trust may only be modified or revoked by the agent as
provided in the trust instrument.