A power of attorney (POA) is an important element of planning for your elderly parents' future. It allows another person to take action on your parents' behalf, ensuring bills get paid and medical decisions are made in the unfortunate circumstance that your elderly parent is unable to do those things on their own. Christina Jeter, Esq., of The Jeter Law Firm, PLLC, advises, "It always makes sense to have a power of attorney in place, regardless of any situation. It is better to be prepared than to have to scramble to think of what an elderly parent would really want."
As Caring.com explains, with a power of attorney in place, you can be confident that you're prepared and your parents' wishes will be respected when they need help.
A power of attorney is a document that allows someone to act on another person's behalf. The person allowing someone to manage their affairs is known as the principal, while the person acting on their behalf is the agent. POAs are generally governed by state law, and there may be some differences between states. Generally, these differences are minor, but it's always a good idea to talk to an attorney who understands the laws specific to your state.
When considering a power of attorney, there are a few other important factors to keep in mind:
Different types of POAs can also give the agent different powers, so it's important to research the type of POA you need. The different types are:
As your parents get older, it makes sense to be prepared for any challenging situations that may require your help. A POA allows children, or another agent, to step in when the need arises. Jeter states, "Any person with an elderly parent should have the conversation with their parent about getting a power of attorney in place if one does not already exist. In my practice, I advise people not to wait when it comes to getting a power of attorney because there are just too many things that can come up in life."
Common Reasons to Seek Power of Attorney for Elderly Parents
Potential Downsides to Power of Attorney
There are many reasons why a POA is useful for older adults and their families, but they're not without downsides. Two common issues to keep in mind include:
When considering individuals to act as a power of attorney, keep the following requirements and recommendations in mind:
Choosing someone to act as a power of attorney is a critical decision. The agent can act on behalf of your parent, so it must be someone your parent trusts and is comfortable with. It should also be someone willing to discuss options and listen to your parent's wishes and desires.
Consider Options Outside the Family
There is no reason why a power of attorney must be related to the principal. Instead of a family member, you may want to consider choosing one of the following individuals:
In fact, a non-relative may be a better choice for several reasons, including the following:
When making your decision, keep in mind that professionals are likely to charge fees, which can add up quickly.
Understand the Full Scope of Your Parents' Needs
Make sure you know what assistance your parent requires and that your parent's wishes are clearly stated in the POA.
Understand the Financial Implications of Becoming a POA
A power of attorney does not become personally liable for any of the principal's debts or bills. However, you should take the following steps to avoid violating any POA clauses that can open you up to legal or financial liability:
It's important to understand the basics of a power of attorney before you set one up. Many states have elder law specialists that can give free or low-cost advice to seniors. These lawyers have experience arranging power of attorney documents and understand local laws. Contact your local Area Agency on Aging for assistance finding a nearby specialist.
When you're ready to set up the POA, follow these steps:
There are a variety of reasons why someone might want to revoke or override a power of attorney, but only the following entities have the ability to do so:
Depending on the type of power of attorney, there are a variety of circumstances that warrant an ending to the agent's authority. The most common situations are typically when:
Each state has durable power of attorney laws that outline how individuals can control their health care decisions in the event of their incapacitation through legally appointing another trusted individual to act on their behalf. View your state on this map of durable power of attorney laws.
Q: How do I get power of attorney over my elderly parent?
The first step to getting power of attorney over elderly parents is to research the different types available and their scope of available powers. Then find out how these work in your state. Talk to your parents so they understand why you want to take this step and the benefits and drawbacks of the action. Consult a lawyer who can help you draw up a document that details your parents' rights and the agent's responsibilities, whether that's you or another person. Finally, execute the document by getting all parties to sign it and have it witnessed and/or notarized as required by the laws in your state.
Q: What are the four types of power of attorney?
The four types of power of attorney are limited, general, durable and springing durable. Limited and general POAs end when the principal becomes incapacitated, so they're not often used by older adults when planning for the end of life. A durable POA lasts even after a person becomes incapacitated, so is more commonly used by seniors. A springing durable POA is a type of durable POA that only comes into effect when certain criteria are met, usually when the principal becomes incapacitated.
Q: Can I get a power of attorney if my parent has dementia?
Yes, you can get power of attorney if your parent has dementia if it is mild dementia and a doctor confirms they have the mental capacity required to make the decision about a POA. However, it's a good idea to set up a power of attorney early, before cognitive impairment occurs during the mid-to late-stages of the disease.
Q: What are the disadvantages of a power of attorney?
The biggest drawback to a power of attorney is that an agent may act in a way that the principal would disapprove of. This may be unintentional if they are ignorant of the principal's wishes, or it may be intentional because they're acting in bad faith. As POAs don't have court oversight, they can be susceptible to abuse or exploitation.
POA agreements may also not be honored, largely due to the lack of court oversight. Banks, for example, may refuse to accept a POA for various reasons. Lastly, the principal must be competent to execute a POA, which can be a disadvantage if it's not set up before they become incapacitated.
Q: Is power of attorney responsible for nursing home bills?
As your parents' power of attorney, you're responsible for ensuring their nursing home bills are paid for through their assets and income. However, you aren't responsible for paying those bills from your assets or income. Federal regulations signed in 2016 prohibit nursing homes from requiring that a third party (such as a family member) guarantees nursing home payments, but you should still ensure that you haven't signed as a guarantor. If you're signing an agreement on the principal's behalf, note that you're acting as their POA and sign every document accordingly.
If, in your role as POA, you're planning on disposing of any of your parents' assets, make sure you understand your state's Medicaid asset requirements. If you sell certain assets at below market price, it could make your parent ineligible for Medicaid benefits. These benefits could help cover the costs of their nursing home care.
This story was produced by Caring.com and reviewed and distributed by Stacker Media.