Set Up Power of Attorney, Today!

Like many people entering the “Sandwich Generation”, I’ve heard of the term “Power of Attorney” but I never knew much about it. Hopefully, this article will add some clarity for you and help you be a bit more informed when you meet with an Elder Law Attorney.

So What is Power of Attorney?

Power of Attorney (PoA) is a legal document where one person, the “principal” (the elderly parent), gives another person, the “agent” (you), the authority to act on their behalf in legal, financial, or medical matters. This gives you permission to make decisions and take action for your elderly parent when they can’t do it themselves.

When to Set Up a Power of Attorney?

If your parent’s health is deteriorating or if they were diagnosed with any form of dementia, you will need to set yourself up as PoA a lot faster than you probably think. The main reason you need to do this sooner rather than later is that your parent needs to be of sound mind to sign off on making your PoA. If they are not of sound mind, things are a lot more complicated. 

Why Set Up a Power of Attorney?

  1. Decision-Making in Case of Incapacity: As people get older, they might face health issues like dementia or other conditions that could make decision-making difficult or impossible. A POA ensures that someone they trust can step in to manage their affairs without needing to go through a lengthy and potentially costly legal process to prove incapacity.
  2. Financial Management: An elderly parent might need help managing their finances, paying bills, or dealing with investments. With a PoA, the agent can handle these tasks, ensuring bills are paid on time, taxes are managed, and financial matters are kept in order.
  3. Healthcare Decisions: If your parent becomes unable to communicate their healthcare wishes, a healthcare PoA allows the designated person to make medical decisions based on what they know the principal would want or based on their best interests.
  4. Avoiding Legal Complications: Without a PoA, if your parent becomes incapacitated, you might need to go to court to be appointed as a guardian or conservator, which is public, more expensive, and can be more stressful for everyone involved.
  5. Peace of Mind: For both the elderly parent and their children, knowing there’s a plan in place can reduce stress about future uncertainties. It ensures that the parent’s wishes are respected even if they can’t express them.

Key Points to Consider:

  • Types of PoA: There’s a general or durable PoA that remains in effect even if the principal becomes incapacitated, and a springing PoA that only activates upon the principal’s incapacity.
  • Specificity: You can tailor the PoA to be very specific (e.g., only for financial decisions) or broad.
  • Revocability: Typically, a PoA can be revoked by the principal if they are still mentally competent.
Setting up a Power of Attorney is about forward-thinking care and protection, ensuring your parent’s wishes are followed, and their affairs are managed by someone they trust, when they might not be able to manage them alone. It’s advisable to consult with an attorney to draft this document to ensure it meets all legal requirements and reflects exactly what your parent wants.