Quick summary
Through a power of attorney, an individual appoints a person, usually a close relative, either to help him manage his affairs, or to handle all his affairs if he's unable to do it himself. When setting up a power of attorney for finances, here's what you and the person in your care should consider:
1. Determine whether he needs a power of attorney.
A power of attorney can be used to help someone manage daily financial affairs, to take care of specific financial transactions, to handle financial affairs while he's out of state or out of the country, or to temporarily handle matters while he's undergoing medical treatment. Perhaps more important is the fact that, whether or not the person presently needs help managing his financial affairs, a "durable" power of attorney provides someone to act on his behalf if he becomes incapacitated. Without a durable power of attorney or another financial arrangement, a court may need to appoint someone to act for him if he becomes incapacitated. This court procedure is a cumbersome, time-consuming, and expensive ongoing process, and he may not have input as to who the court will appoint.
If both a husband and wife are living, each should execute a separate durable power of attorney. For an explanation of how different types of power of attorney address different needs, see What Is Power of Attorney for Finances?
In some situations, it may not be necessary to prepare a durable power of attorney. Rather, another form of authority, such as a revocable living trust, can accomplish a similar result, giving another person (the trustee) authority to act. People with large estates may decide that a revocable living trust, with its important tax advantages, may be adequate for their needs. However, for the trust to effectively replace a durable power of attorney, all of their present and future income and assets must be part of the trust. Or they may choose to have both a revocable living trust and a power of attorney for finances.
knowing th difference in power of attorney n trust forms..no one ever explains th necessities of this value..
Hello anonymous, Thank you for your question. Here is an Ask & Answer page that you may find useful: ( http://www.caring.com/questions/how-can-i-take-over-moms-finances-without-her-consent ). Take care -- Emily | Community Manager
Can a "power of attorney" be done without the authority of my elderly father who has Advanced Alzheimers and is in a care facility. I assisted in obtaining a mortgage for my parent's home back in 1987 (their names remain on the deeds) whilst they were claiming benefit, however, am wondering do I have any say, or power to help my mother if she wants to downsize her property. Please advise. Regards Kam
My mom is in a nursing home, she has dementia and mentally is living in the past. She is 98 years old and up until 3 years ago lived with me. I make all decisions regarding healthcare but we never did anything financially. We have a joint bank account with minimal amount of mone in it, less than $1000.00 and she has a life insurance policy and I am beneficiary. I am her only child and my Dad is deceased. What if anything do I have to do.
Appreciated the step-by-step approach of this article. The focus on basic information helped me understand the what and why of the POA and the limitations. We put a durable POA in place with Mom, she rescinded it at the bank, and then we got her to redo it at the bank and have had no further problems. She is still touchy about how much I talk about her finances but I know what is going on and the bank personnel call me as needed. I have also had to deal with insurance companies and doctors' offices and the DPOA has been critical. Used LawDepot.com as referenced in the article for the document and had my attorney review it; he was impressed and said, "use it as is."
super helpful! The legal advice I have been looking for is here, large print so I can see it, and clear writing, so I can digest it. My father in law has left a tangle of debt and this website has helped me to face it.
My dad had a stroke in January 2009 and I had to take a leave of absense from work to go to the US VI to get my dad from the hospital, bring him back to NC with me and took him to the doctof often to get him back to health. Meaning, getting his bad decaded receeding teeth pulled, dentures, rehab for the stroke, prostate check, colonoscopy, medications for diabetes, high colesterol, and high blood pressure, eyes check, etc. I also had his house painted by a friend while we were in the states, refrigerator repaired, and made sure the grass was cut while he was with me . I have been paying his bills since 2001, when he had his first stroke. The second one was worst than the first one. He began to get better so I took him hom in April 2010 to see how he would do and now he has completely disowned me toold me I was using himi and had a credit card in his name he does not know anything about (provoted by his cousin that did not see about him when he was ill but now trying to turn him against me). While he was here I had wheels on meals bring him lunch and I cooked dinner, also put my son out of his room so my dad would have a bed to lay in while my son slept on the couch for 1 1/2 years. In the meantime I was in a process of going through a seperation. Took him him, brought him knew furniture because the old one had bed bugs and when the furniture removed it, it fell apart anyway. Now all of a sudden I am stealing from him. He wrote me a letter that is really not in him but cohearsed by my cousin that he is going to sue me for a GE Money credit care he claims he knows nothing about. It was a financial plan to pay for the 13 teeth that were rmoved from his mouth because they were rotten and decaying and the doctor stated this which may have caused his stroke. Upper and lower dentures were put in. He had to sign it because I have a family and paying my own bills and he received two checks that could pay for it and it was not going to be any interest for 6 months. Since he has been back to the US VI, his cousin has told him that I all about money but I have never taken anything from my day but took complete care of him..I have plenty of witnesseses. What can I do to get him evaluated and prove that he is being brain washed by her because she has already took everything from her brother. She sold a house while he was the one taking care of it. I am afraid she will do the same thing to my day once she convinces him to sign everything over to her. My dad has never in his entire life done this to me until he go back down there in my 43 years of life. Do I have any legal rights against her since I am his first born and only heir that has taken care of him. Please respond ASAP because I need answers. We also had a trust that I found out he has take me off because of his cousin also. Shouldn't the lawyer that drew up the trust be able to have him evaluated? Distraught Daughter