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How to Get a Power of Attorney (POA) for Finances

If your loved ones want you to do more than merely organize and advise them about their finances -- to actually partner with them in handling some or all of their finances, or take over altogether -- you and they will need to execute a Power of Attorney for Finances. In simplest terms, a POA allows you to act on their behalf, without having to get specific permission each time, to the extent they stipulate. Even if they don't want you to take on these active duties yet, it's usually a good idea to prepare a POA ahead of time, so that you'll be able to step in during an emergency. Here's how to do it:

1. Start by reviewing a sample POA form. Talk through the terms of a POA form with your loved ones. The POA might allow you to handle all financial matters immediately, without removing your loved ones' own authority to make decisions. Or it might be limited to certain specific transactions now, with full powers only if and when the seniors become incapacitated. Or it might not grant you any immediate authority, only going into effect if and when one or both of them become incapacitated. This will allow all of you to see different possibilities, to discuss them calmly, and even for you to help them draft a sample document before sitting in a lawyer's office with the hourly billing meter running. You can download state-specific samples for the state your loved ones live in by conducting an online search using the phrase power of attorney for finances forms, along with the name of their state.
2. Meet with an attorney. The attorney will want to explore what form of authority best suits the seniors' needs and what limits, if any, should be placed on the power of attorney. If they don't already have an attorney who prepares powers of attorney, you can find one by getting a referral from any other lawyer you or they know and trust. You can ask relatives and friends if they know of a lawyer who draws up powers of attorney. Or, you can contact the local bar association and ask for its lawyer referral service.
3. Put it all in writing. Get it signed, witnessed, and notarized.
4. Store the original and copies. Make sure the original gets stored in a safe place and give copies to everyone who should have them, such as family members, financial institutions, and any accountant your loved ones may have.