Do You Need Power of Attorney for Your Aging Parents?
As a parent ages, it can become challenging to balance respect for their autonomy with the real need to protect them from the ramifications of a decline in health - whether mental or physical. A power of attorney (“POA”) can provide peace of mind and clarity in these times of transition.
A POA is a legal document in which a person authorizes another person (called the agent or attorney-in-fact) to act on his or her behalf in making a set of specified decisions, like managing finances or making medical decisions. The term “power of attorney” can also refer to the individual designated to act in this way.
While it may be difficult to approach this topic with your parents, having these discussions early on can help ensure that you follow their wishes if their health changes over time. In this article, we'll explore how to obtain power of attorney for aging parents and provide helpful tips on how to approach these discussions with warmth and care.
What’s a POA?
As mentioned above, POAs are legal documents, which vary between states, that provide a person, or several individuals, with the power to perform actions on behalf of someone else. The individual with a POA is an agent, whereas the principal refers to the person who is having their affairs managed by other individuals. Agents can only perform actions outlined within the POA document. It’s important to note that the principal may still make their own decisions, provided they can still do so coherently.
POA Types
There are several different types of POAs:
General: For this POA, the agent can manage the principal’s affairs for a specific period, and the principal may revoke this at any point. These automatically finish if the principal becomes incapacitated and are common when an individual can still see to their affairs but prefers that someone else does this for them.
Durable: These POAs continue after the principal becomes incapacitated and are more common when someone cannot manage their affairs. They can conclude in many ways, including once the principal dies or if the agent completes the conditions within the POA document.
Springing: The terms in this POA do not take effect unless the principal becomes incapacitated. For this POA, the principal remains in control of their affairs until they lose capacity.
Medical: These POAs allow agents to make the principal’s medical decisions. They last until the principal is competent and might also expire after a certain period mentioned in the document.
Limited: These limit the agent’s ability to make decisions regarding certain tasks as outlined in the POA document, such as paying bills or selling a house. Limited POAs are usually temporary and end when the principal loses capacity.
Why and When to Consider a POA For Your Aging Parents
Here are some reasons why you may consider obtaining a POA:
Finance issues: POAs enable individuals to continue paying their parents’ bills and manage their finances when their parents struggle to fulfill these obligations.
Serious illness: Having a POA for an elderly parent can be helpful as it allows them to focus on getting better and reduces the stresses associated with managing their affairs.
Memory issues: Individuals commonly obtain a POA to manage their parents’ affairs if they develop dementia. It is helpful to note that it is necessary to obtain the POA before the parent loses their capacity.
Surgery: When an elderly parent is undergoing surgery, it might be a good idea to obtain a POA so individuals can make decisions on their parents’ behalf and manage their affairs until they have fully recovered.
Frequent travel: Some elderly parents like to travel frequently, so POAs can be useful here for ensuring their affairs remain in order while they are away.
How Do I Choose a POA For My Parents?
When considering a POA for your aging parents, there are several things to keep in mind. The most crucial factor is trust - you must choose someone you can rely on to make decisions in your parents' best interests and follow their wishes.
While family members are often chosen for this role, it's important to consider whether they are the best fit. An objective outsider, such as a lawyer or financial institution, may be better suited to the task in some circumstances. Yet, this method would be more costly.
Before agreeing to be a POA for your parents, it's essential to have a thorough discussion with them to understand their needs and preferences. Different types of POAs have different levels of responsibility, and it's important to clarify what your parents expect from you. If your parents need help with medical decisions, for example, this will require more involvement than if they only need assistance with financial decisions.
Finally, it's essential to understand the financial implications of becoming a POA. You will need to keep your finances separate from your parents' and be prepared to justify any decisions you make to avoid legal issues.
Choosing a POA for your aging parents is a significant decision, and it's essential to approach it with care and sensitivity. By having open and honest discussions and seeking objective advice, you can ensure that your parents receive the best possible care and support.
We Would Be Honored to Support You
It’s important to start these discussions with your parents as early as possible. Let them know that you're there to support them and that you will only use the POA powers if it's absolutely necessary.
Additionally, it may be helpful to seek the guidance of an experienced life and legacy planning attorney. We understand that this is a difficult process, but we're here to help. Please feel free to contact us today to learn more about how we can support you and your family.
This article is a service of Cedar Counsel. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.