With both my parents in the hospital, how can I pay their bills?
My elderly parents were in a car accident and are now both in the hospital for long-term care. They haven't been home since the accident, and now I have to figure out what bills need paying and how to access their accounts. How do I get started?
If your parents aren't incapacitated, the simplest solution is to have them sign checks and pay their bills from the hospital. (You may find that they use an automated bill-paying service or have their bills paid automatically online. In that case, you won't need to worry about debts piling up.)
If your parents aren't able to help you with this, your options depend on whether you have a durable power of attorney (DPOA) in place for each of them.
Ideally, before the accident occurred, you and your parents saw an attorney together and prepared this legal document, which gives you the ability to access accounts, pay bills, and make financial, legal, and real estate decisions on their behalf.
If you already have a DPOA, contact your parents' banks and creditors. Let them know that your parents have been incapacitated and that you're acting as their designated decision-maker. You should have no trouble paying your parents' bills from their bank accounts.
If you don't have a DPOA and your parents are still mentally competent, ask them to sign the forms immediately. Someone on the hospital staff should be able to help you get the right forms and arrange for a notary to visit your parents' rooms to get the papers signed and notarized.
If your parents aren't mentally competent, your options without this legal document are fairly limited. One option, if you have the means and can collect the mail from your parents' house, is to go ahead and pay their bills yourself -- it's not illegal to pay someone else's bills.
However, if you want to pay the bills from their accounts, you're probably out of luck. Because of privacy laws, unless you have a power of attorney, their banks won't give you any information or access to the accounts.
Finally, if you don't have durable power of attorney forms signed and are concerned that your parents will be incapacitated for a long period of time, you can go to court to petition to be named as their guardian or conservator. Unfortunately, this can be a long and expensive process, so be prepared.
Setting up online auto bill pay only from your end would have prevented this mess. You signed up for online auto bill pay access through your bank. They save your username and password in their system and you can set up your bills from the comfort of home and only from your end. This is how you can make sure all of your bills are paid well in advance and all of your automatic transactions carried out through the bank system. That way, you don't need a middleman. If someone comes in wanting POA while you're in the hospital, politely explain your finances are already taken care of and your bills are already paid and then ask them to leave. If they persist, push the call button and call a nurse. When the nurse comes in, have the nurse show out and tell the problem person to please not come back, problem solved
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