As you age, you eventually need help, and this is especially true when managing your finances. If your parents are reaching an age where managing their finances alone is a hazard, then getting them support is of the utmost importance. Because, as sure as the world will continue to turn, these financial responsibilities will remain. There are legal tools that can help get professional help while enabling them to maintain their independence and dignity, such as a durable power of attorney for asset management.
At Marcia L. Campbell CPA, we have helped seniors manage their finances for years through fiduciary and trustee services. Learn more about this legal tool at your disposal!
What is a Durable Power of Attorney for Asset Management in California?
A durable power of attorney for asset management is a legal document that allows someone, usually a senior, to designate another person to act for them in managing their finances and assets. This legal tool is excellent for managing elderly parents’ finances.
A durable power of attorney remains in effect until the death of the person who created the designation or until they revoke it. But your parents must draft and sign this document and appoint someone while they are still competent enough to do so.
If the courts find that your parents or loved one is not competent enough to grant this responsibility to another person, you must seek a conservatorship.
Working with a private fiduciary is ideal when managing parents’ finances to minimize stress and ensure your parents are taken care of. Because this is a type of financial power of attorney in California, it cannot be used to make healthcare decisions.
Related Article: How to Get a Financial Power of Attorney for a Parent
How Does a Durable Power of Attorney for Asset Management Help With Taking Over Elderly Parents’ Finances?
Taking control of elderly parents’ finances is a time and labor-intensive responsibility that requires considerable financial acumen to ensure everyone involved has peace of mind, which a financial power of attorney in California will provide.
With a durable power of attorney for asset management, you can work with an attorney to write a document that gives a private fiduciary the power to manage a single, specific financial transaction or to allow a broad range of transactions.
You can tailor the document to your parent’s unique situation. By helping your parents with daily money management, you also provide them with crucial financial and personal security by having a vigilant and expert third party protect them from scams and fraud.
Still, keep in mind the person who receives a power of attorney designation can only manage assets held solely in the person’s name, meaning jointly held assets and trust assets are not governed by this document, and trustee services are a better option.
“A power of attorney is a versatile tool to help manage a senior’s finances when they can no longer do so themselves. You can use a power of attorney and private professional fiduciary services in conjunction to oversee the sale of a house or car, or you can use it for daily money management services, like selling stocks, writing checks, managing a specific bank account, managing IRAs and 401ks, depositing Social Security checks, opening and closing accounts, paying bills for elderly parents, and more.” – Marcia L. Campbell, CPA for Seniors
Related Article: Elder Care Financial Services: What Are Daily Money Managers for Seniors?
Do You Need Help Managing Your Parents’ Finances? A Power of Attorney for Asset Management and Private Fiduciary can Help!
Using a durable power of attorney for asset management to enlist the professional help of a fiduciary like Marcia Campbell is an excellent strategy to ensure that your parents receive the professional support they need for them to maintain their independence and everyone involved to obtain peace of mind knowing their finances are taken care of.
Visit our Contact Page and schedule a consultation to ensure your parents’ finances are in expert hands to minimize stress for everyone to ensure their golden years remain gilded!
