It is never easy to relinquish autonomy. However, as we age, this is inevitable. While your parent may resist the notion of a power of attorney (POA) for their finances, this is often essential to their wellbeing, and it can even help them maintain independence. If you are wondering how to get a power of attorney for a parent, here is where to start:
Determine if They Are Fit to Choose
You can only get a power of attorney for finances for someone with the capacity to willingly and knowingly grant it.
Your parent must be able to make decisions for themselves, understand the document, and communicate what they want. Some conditions that leave someone incapable of granting a POA include:
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- Unconsciousness
- Dementia
- Alzheimer’s disease
- An intellectual disability
If your parent cannot grant a POA, you have to pursue a legal conservatorship, which is significantly more time-consuming and costly.
Related Article: Reasons to Get Power of Attorney for a Parent with Alzheimer’s
Talk to Them
Figuring out how to get a financial power of attorney for a parent requires candidly talking to them. Only they can make this decision. Below are several topics to discuss to make the best decision for your parent.
What a Financial POA Does and Why Your Parent Needs One
Understanding how to get a financial power of attorney for a parent requires understanding what it is and why they need one.
A financial POA enables an agent to manage your parent’s finances and transact personal business on their behalf. Your parent can give them as much or as little power as they wish. To determine the scope of their authority, discuss current and projected needs by asking:
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- What financial decisions do they want their POA to make on their behalf?
- How do they want their POA to maintain their property?
- How do they want their POA to manage their investment accounts?
- How do they want their POA to pay bills and emergency expenses?
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Asking these questions and more ensures their power of attorney for finances will adhere to their best interests and make decisions with confidence.
Moreover, it is imperative for you and your parent to understand why they need a POA. If they are facing potential incapacity, whether temporary or permanent, and will be unable to handle their financial affairs, a financial POA ensures they are not neglected.
Ultimately, only an expert CPA can guarantee you and your parent have addressed all pertinent financial matters and that their financial POA clearly understands their wishes.
Selecting the Type of Power of Attorney
Generally, when considering how to get a financial power of attorney for a parent, there are two types to choose from. Both are viable solutions for different circumstances:
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- Durable power of attorney: This POA enables the agent to act on their behalf even if they become incapacitated. A durable POA is ideal if you are looking into the future and planning for end-of-life care.
- Non-durable power of attorney: This POA ends an agent’s authority as soon as your parent becomes incapacitated. Someone may need to step in after the POA ends, so be wary of these choices.
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Selecting the Agent
After choosing the type of POA, a crucial consideration when determining how to get a financial power of attorney for a parent is selecting the agent. Your parent must be able to trust them to act in their best wishes
Related Article: Why Setting Up A Power Of Attorney Is Crucial For Your Future
Sign the Form, Deliver It, and Save Copies
Lastly, consult a lawyer to draft and tailor a power of attorney form to your situation. POAs typically must be signed in front of a notary and signed by at least two witnesses.
People listed as the power of attorney for finances cannot sign as a witness. Afterward, deliver the form to all necessary and interested parties, and make and store copies securely.
Related Article: How Soon Should I Set Up a Power of Attorney in California?
Get Help with Figuring Out How to Get a Financial Power of Attorney for a Parent
Establishing a power of attorney for finances is a complex legal process that requires anticipating current and future financial needs. If you suspect you will need to get a financial POA for your parent, acting immediately is critical to ensuring your parent is capable of legally making this decision. More importantly, consulting with an estate planning attorney or an expert CPA is crucial to determining the scope of their authority.
Fortunately, with Marcia Campbell CPA, you receive expert financial advice to ensure your parent is in good hands and that their needs and desires are always accounted for. Contact us with any questions to get started.