The Importance of a Power of Attorney for Aging Parents

A power of attorney for an elderly parent can be a crucial tool to ensure you can make decisions on their behalf if they become unable to do so themselves. But having valid powers of attorney in place for financial matters and healthcare is not only convenient — it can also give your loved one peace of mind that their wishes will be met. It can also help to avoid legal complications, family disputes, and the need for court proceedings.

What is a Power of Attorney?

A power of attorney is a legal document that gives a person the authority to act on another’s behalf when it comes to making healthcare or financial decisions. The designated agent for each type of power of attorney may be the same person, or they can be different individuals. In addition, more than one individual may be appointed and share responsibilities. Once the document is executed, the authority given to the agent remains intact unless the power of attorney is revoked or the principal passes away.

A power of attorney for an elderly parent can be specifically tailored to list the precise actions the agent is permitted to perform, or it can grant the agent broad authority with few limitations. There are several types of power of attorney in California, including the following:

• Medical power of attorney — A medical power of attorney can enable a designated agent to make decisions about the principal’s medical treatment, hospital admissions, and medications. The authority granted can include making decisions about life-sustaining treatment and end-of-life care, communicating with doctors, and accessing medical records. A power of attorney for healthcare can be combined with a living will to form an advance healthcare directive.
• General power of attorney — A general power of attorney can authorize an agent to manage the principal’s finances, pay bills, invest funds, handle real estate transactions, make withdrawals and deposits into accounts, and file taxes.
• Limited power of attorney — A limited power of attorney gives the agent the authority to perform one clearly defined task and ends once the task has been completed. For instance, it may authorize the agent to sell a piece of property or carry out a single financial transaction.

Powers of attorney may be immediately effective, or springing. An immediately effective power of attorney goes into effect once the document has been executed. A springing power of attorney becomes effective upon the declaration by a physician that the principal has become incapacitated.

The Benefits of a Power of Attorney for an Elderly Parent

A medical power of attorney for an elderly parent is essential in order for you to communicate with their healthcare providers and make medical decisions in the event of their cognitive decline. Without having this document in place, a doctor would not be able to discuss your loved one’s treatment — and you would not be permitted to make healthcare decisions for them. This document can help ensure your loved one’s wishes are respected, even if they cannot directly communicate them.

Similarly, a general power of attorney for finances can ensure bills are timely paid and assets are managed appropriately. This tool can also help protect your loved one from potential financial abuse and exploitation, or scams targeting seniors. Without a valid power of attorney, you would need to petition the court for a conservatorship to obtain the legal authority to manage your loved one’s financial affairs if they become incapacitated.

Knowing that there is a plan in place can provide you and your aging parent with the peace of mind you both need. A power of attorney for an elderly parent can help prevent family conflict by clearly specifying who has the authority to make decisions on their behalf. Since the agent can act immediately, a power of attorney can allow for fast and efficient decision-making in urgent situations — and avoid the need for court intervention. However, it’s critical to understand that a power of attorney must be executed before incapacity arises in order to be valid.

Contact an Experienced California Estate Planning Attorney

If your parent is elderly and does not have a plan in place for incapacity, it’s important to discuss the benefits of drafting a power of attorney. At White & Bright, LLP, we work with individuals and families for a wide range of estate planning and incapacity planning matters, including creating valid and enforceable powers of attorney. Contact us online or call (760) 747-3200 to schedule a consultation to learn how we can assist you.