Drafting a Power of Attorney for Aging Parents

It's crucial to have a care strategy in place as our parents age. A power of attorney can be used in the context of elder care to give someone else the power to decide on your parent's living circumstances, financial situation, and medical care.

Creating a power of attorney for your aging parent is an important step in ensuring their well-being. Here are some things to keep in mind when drafting a power of attorney for your elderly parent.  

What is a Power of Attorney?  

A power of attorney (POA) is a contract that grants someone the authority to handle another person's financial or medical affairs. The individual who is granted these rights in this arrangement is referred to as the "agent," and the person who has forfeited the ability to make decisions is referred to as the "principal."

For example, if a POA grants you the authority to make financial decisions for your elderly mom, you are the “agent,” and your mom is the “principal.” 

A power of attorney can be broad or limited and enables the agent to make decisions about medical care, property, or financial affairs.  

How a Power of Attorney Works 

Recognizing when a power of attorney should be established is the first step in the process. A power of attorney may be suggested in a variety of situations, including:

• Parents who are too old to care for themselves

• A loved one suffering from dementia

• Military personnel so that someone will be able to act on their behalf if they become incapacitated while on duty

• Prolonged international travel in order to have someone manage the school's business while the principal is away

We recommend once you have established that a POA is necessary that you seek legal counsel from an estate planning attorney who will guide you through the process.   

The conversation between the principal (your parent), the agent (you), and your legal counsel to decide what range of powers should be granted is the next phase in the drafting process.

A POA should be drafted by your lawyer,  

endorsed by the principal and two witnesses then be notarized.    

After the POA documents have been signed, it becomes legally binding and can only be revoked by destroying the original copy or by formally having it revoked. 

Types of Power of Attorney  

The types of power attorney include:  

• General Power of Attorney: Gives the agent broader power to make decisions for the principal including handling bank accounts, managing assets, and filing taxes.  

• Limited Power of Attorney: Gives the agent rights to make decisions for the principal in one or more specific areas including medical care, or a single transaction like giving the agent the right to sell a home. These agreements may also be put into effect for a specific period, such as a few months or years.   

• Durable Power of Attorney: This becomes effective as soon as the principal signs it and cannot be revoked until they pass away, or revoke the agent’s rights. A durable power of attorney even remains in effect if the principal becomes mentally incapacitated.  

Reasons why an Aging Parent May Need a POA 

Here are a few reasons why it might be time to set up a power of attorney for your elderly parent:  

#1. Financial Responsibilities  

It may be time to create a financial power of attorney if your parent is struggling to meet their financial obligations or is in danger of blowing up their retirement funds.

#2. Alzheimer’s Disease or Dementia  

It is crucial to set up a durable power of attorney for an elderly parent who has dementia or Alzheimer’s before they experience significant cognitive decline since it can be quite complicated to execute legal documents once they are deemed mentally incapacitated.  

 

#3. Upcoming Medical Procedures  

Invasive medical procedures and surgeries can lead to complications. A power of attorney ensures that your parent’s wishes will be respected in case of an emergency.  

#4. Planned Travel 

Sometimes a POA is established for practical reasons rather than because it is required by law. Your elderly parent may prefer someone at home who can cash incoming checks and take care of their bills while they are traveling in their retirement.

#5. Medical Diagnosis  

If your elderly parent has been diagnosed with a terminal illness, a power of attorney can ensure that their wishes are carried out if they become incapacitated or too sick to make health care decisions.  

#6. Unstable Family Dynamics  

It is common for adult children to fight about their aging parent’s care, especially if they disagree with their end-of-life decisions or finances. The person designated to uphold your parents' desires is specified in a power of attorney, and they also have the right to prevent other family members from interfering.

Learn More > Avoiding Family Conflict with Estate Planning  

Power of Attorney: A Proactive Step  

Drafting a power of attorney can ensure that your elderly parent’s medical and financial wishes are carried out if they become incapacitated or need help making decisions. Talk to your parents about their wishes and put a plan in place as soon as possible. It can give you greater peace of mind throughout their golden years.  

Start drafting a power of attorney for your aging parents. Schedule a consultation with Elaine McGinnis P.A. today.