Caring for elderly parents and loved ones extends beyond just attending to their physical health. You may have observed that your father is struggling with his memory, raising concerns about his ability to make sound financial choices. Or perhaps your fiercely independent mother needs a bit of encouragement to organize her affairs. Are you equipped to make decisions on their behalf? Have they established a power of attorney?
The caregiver’s role can be intricate and often emotionally, mentally, and physically taxing – especially during challenging times. Staying organized is crucial in alleviating some of the daily pressures that accompany caregiving. To shed light on how power of attorney functions and its importance for caregivers, we spoke with Emily Carter, a senior partner at an elder law and estate planning firm.
What is Power of Attorney and How Does it Function?
A power of attorney (POA) is a legal document that grants someone the authority to make decisions on your behalf. This is a necessary step for anyone organizing their legal matters. The document can either take effect immediately upon signing or only when the individual is incapacitated. It can be tailored for a specific purpose or time frame, and even include provisions for the care of a beloved pet.
Different states may refer to the document in various ways, such as a medical POA or a financial POA. For instance, in California, the POA is primarily for financial matters, while a healthcare proxy handles medical decisions.
“Every adult should have a POA as part of their essential documents,” Emily emphasized. “Alongside a will, a healthcare proxy, and a living will, a POA clarifies your wishes in critical medical situations. With recent events like the pandemic, it’s vital to be explicit about what you want your family to do—or not do—in emergencies.”
What is a Durable Power of Attorney?
A durable POA allows the appointed individual (the agent) to make decisions on behalf of the principal (e.g., your mother) if she becomes incapacitated and cannot express her wishes. The term “durable” signifies that it remains in effect even if the principal cannot give consent or object.
“It’s crucial for your mother to appoint someone she completely trusts,” Emily noted. The choice is hers alone, be it you, a sibling, a distant relative, or a close friend.
Can Multiple People Hold Power of Attorney?
If your mother wants both you and your sibling involved, there are a few arrangements to consider:
- Your mother can appoint you as the primary agent and your sibling as a backup.
- Both of you could be required to sign jointly on all decisions.
- Alternatively, both of you could have the authority to act independently.
What Responsibilities Does a Financial Agent Have?
If the POA grants full financial authority, the agent can:
- File taxes
- Manage investments
- Pay bills
- Sell property
- Apply for public assistance programs like Medicaid
What Responsibilities Does a Medical Agent Have?
Similarly, a medical agent can make decisions related to:
- Hospital care, surgeries, and home health services
- Selecting healthcare providers
- Arranging assisted living, provided the financial POA approves the costs
Why Is It Urgent to Sign a Power of Attorney?
If your parents are no longer mentally competent, they cannot sign a POA. This situation would necessitate a court proceeding to establish guardianship, which can be both costly and time-consuming. Emily recommends preparing a durable POA well before retirement age to avoid these complications.
How Competent Must Someone Be to Sign a Power of Attorney?
If your mother is experiencing early-stage dementia, the ability to sign a POA may depend on her understanding of the situation. Does she recognize who you are? Can she comprehend her assets and the implications of appointing someone to manage her finances? It’s essential she retains enough cognitive capacity to understand her decisions.
Can You Download a Power of Attorney Form Online?
While generic POA forms are available online, Emily advises against using them. “You might miss crucial language that could be necessary in the future,” she cautioned. A well-drafted POA should account for various scenarios.
When Does Power of Attorney Expire?
A POA will terminate when:
- The principal passes away
- A new POA is created, nullifying the previous one
- The existing POA specifies an expiration date
As a caregiver, having the right tools, including a power of attorney, is vital for effectively managing your parents’ affairs.
Can Someone with Dementia Change Their Power of Attorney?
Individuals with dementia can still change or revoke their POA unless they’ve been deemed legally incapacitated. The court will assess their capacity in various areas before making a determination.
Who Can Override Power of Attorney?
Only a court can revoke a power of attorney. If someone petitions to remove you as the agent, a judge may evaluate your actions and determine whether you’ve acted in the principal’s best interest.
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Search Queries:
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In summary, having a power of attorney in place is crucial for anyone managing the affairs of a loved one. It provides clarity and direction during difficult times, ensuring that their financial and medical decisions reflect their wishes.
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