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 when their
health changes over time. Starting the conversation with empathy and
understanding can make all the difference.
In this
article, we'll explore how to obtain power of attorney for elderly parents and
provide helpful tips on how to approach these discussions with warmth and care.
After all, our ultimate goal is to ensure that your aging parents receive the
best possible care and support.
What’s
a POA?
According
to the American Bar Association, 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. Moreover, if someone agrees to a POA, they can still
make their own decisions, provided they are coherent. This means the agent
cannot make exclusive decisions on behalf of the principal.
POA
Types
There are
different types of POAs with varying functions.
●
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 end 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 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
the common reasons why individuals may consider getting 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 My Parents Choose a POA?
When your
aging parents are considering a POA, there are several things to keep in mind.
The most crucial factor is trust - they must choose someone who can be relied
upon 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. If your parents think an objective outsider may
be better suited to the task, such as a lawyer, accountant, or financial
institution, this is also an option, although it may come with additional
costs.
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 is a significant decision. By having open and honest discussions and
seeking objective advice, you can ensure that your parents receive the best
possible care and support.
Getting
Started
If you
have elderly parents, it's understandable that discussing power of attorney
(POA) may be a sensitive topic. However, starting these discussions as early as
possible can bring peace of mind and clarity in the future.
When
approaching these conversations, it's important to consider your parents'
health and well-being. Let them know that you're there to support them.
Additionally,
it may be helpful to seek the guidance of an experienced estate planning
attorney. We can provide objective advice and alleviate any concerns that your
parents may have. 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 assist you and
your family.
This article is a service of Ganvir Law, Personal Family
Lawyer®. We do not just draft documents; we ensure you make informed and
empowered decisions about life and death, for yourself and the people you love.
That's why we offer a Family Wealth Planning Session™, during which you will get
more financially organized than you’ve ever been before and make all the best
choices for the people you love. You can begin by calling our office today to
schedule a Family Wealth Planning Session and mention this article.
The content is sourced from Personal Family
Lawyer® for use by Personal Family Lawyer firms, a source believed to be
providing accurate information. This material was created for educational and
informational purposes only and is not intended as ERISA, tax, legal, or
investment advice. If you are seeking legal advice specific to your needs, such
advice services must be obtained on your own separate from this educational
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