What is a Power of Attorney?
Your dad is in the hospital and you need to pay his bills so you do some digging and find out where he banks. You need access to his accounts so you can make sure everything is taken care of. You get to the bank and they ask for your Power of AttorneyâŠ.and chances are youâre vaguely aware of the term or you have no idea what theyâre talking about. Whether youâve heard the term from the bank, a family member or a friendâŠor have no idea what weâre talking aboutâŠthis post is for you!
I realized that we didnât have a post dedicated to this important topic and we needed one! My brother and I heard about POA from my uncle about a week before our dad died⊠as I look back now itâs interesting to me that we didnât hear anything about it from the countless doctors or hospital staff. Iâm so grateful our uncle said somethingâŠotherwise it wouldâve been very difficult to access our Dadâs accounts. And I donât know whyâŠBut Comcast is the worst!
So today weâre going to talk about what the POA is and when youâll need it.
Power of Attorney or POA means that your loved one has authorized you to speak on their behalf to manage their financial affairs and make medical decisions. It doesnât hold the same power as a guardianship and in some states it loses its power after your loved one passes away. Weâre going to have an upcoming post on guardianships.
There are many different types of POAâs⊠but today we are going to talk about the two most common oneâs families use for their aging loved ones.
1.The Durable Power of Attorney
2.The Medical Power of Attorney
The Durable POA allows you to make decisions regarding the estate, finances and any other legal matters when your loved one is unable to make these decisions. So for exampleâŠyouâll be able to access their finances in order to pay the bills. Just a heads upâŠsome banks make this very difficult and for good reason. Be prepared to submit your original POA.
The Medical POA , just like it sounds, allows you to make medical decisions when your loved one is unable to. These of course can be very emotional and stressful decisions.
As we mentioned, the forms and laws can differ state to state and weâll have a resource in the doable download link where you can find your state. Speaking of different statesâŠsome states like WA prefer that the POA live in the same state. That being said, we have worked with families who for example held the Durable POA and lived out of state but were still able to handle finances from where they lived.
A few other points about the POA. In most states theyâre not legally binding until signed by a notary and a witness. Your loved one signs as well and must be of sound mind when they sign. Usually banks, hospitals and skilled nursing facilities have notaries and there are even traveling notaries. The cost is minimal. Usually under $50.
These particular POA documents that weâre talking about donât go into effect until your loved one is unable to make decisions. This could be due to a disability, cognitive impairment such as Alzheimerâs or during a surgery. Of course this becomes extremely important if your loved one has Dementia or Alzheimerâs. You will want to have these forms in place early.
When should you get a POA and who should be their POA? These are great questions and like myself and my brother we didnât even know it was a thing! Itâs definitely ideal to have something in place earlier than later. Many families as they start to come to terms with their loved oneâs decline start conversations about aging with these documents. Theyâre usually saying something likeâŠwe just want to make sure that your affairs are taken care of should anything happen to you. Some families wait because a spouse is automatically allowed to make these decisions without this paperwork. You might be thinkingâŠas the son or daughter that you donât really need to do anything while you have both parents. I would caution you to take a good look at the situation. Is one spouse providing care for the other? Does one have memory loss? What happens if they become too impaired to sign and something happens to the other spouse. You can quickly find yourself in a position of needing to make decisions and not having paperwork in place. My brother and I just got very lucky that my dad had a good day during his hospital stay and he was able to sign.
So who did my dad pick? Well there are many things to consider when deciding who should be which POA. As we mentioned, medical decisions can be very stressful so choosing someone who may be less emotional during those times might be a better choice. A family member who is good with money might make the best financial POA but also take into account who has the time to do it! Handling someone elseâs affairs when you have a full plate can be tough. You can also have more than one person. A first and second. My dad chose both my brother and I. Of course some donât have a choice. Like my sonâŠSorry Caleb! Heâs an only child! Although we automatically think of children being the POA, I could choose anyone I want. This could be another family member like a niece, grandson or even a friend. So Caleb.. you might be off the hookâŠbut probably not!
So whoâs going to need this paperwork? Lots of people! The doctor, hospital, skilled nursing facility, senior living community, adult family home, utility companies, banks, realtors, in-home health care, the funeral home and more!
There are many things to consider when approaching this conversation and as you can see, it can be a big job. The most important step is just starting the conversation. Of course talking about these things can be uncomfortable but having these decisions made before youâre caught in a very stressful medical situation can make all the difference.
If youâd like to check out our blog post in podcast form, be sure to take a listen HERE!
Click HERE for our Doable Download, which provides the resources referenced in the post
