Power of Attorney: What You Need to Know

There are different types:

Financial power of attorney lets your agent pay your bills, handle your bank accounts, and take care of money matters.

Health care power of attorney lets your agent make medical choices when you can’t speak for yourself.

Either of these can be “durable” or “limited.”  A durable power of attorney remains in effect even if you get sick and can’t think clearly. This is what most older people need. A limited power of attorney only lets your agent do certain things or work for a short time.

The best time to create a power of attorney is now, while you can think clearly. Many people wait until they get sick, but then it might be too late. Once your mind starts to fail, you might not be able to legally sign these papers.

Remember: Having a power of attorney doesn’t take away your control. You can still make your own choices as long as you’re able to. It just gives you a backup plan.

Picking the right person

Picking your agent is the most important choice. This person might handle all your money and personal business. Choose carefully.

They must be someone you trust completely. Pick someone who is honest and will always do what’s best for you, not what’s best for them.

They should be good with money. Look for someone who pays their own bills on time and understands basic money matters. They don’t need to be experts, but they should feel comfortable handling money.

Think about your family. Many people pick their adult children. But think about how this might affect your family. Will your other children be okay with this choice? Could it cause fights?

Pick someone younger and healthy. Choose someone who will likely stay healthy longer than you will. Don’t pick someone your own age who might get sick too.

They should be good at talking to people. Your agent will need to talk to banks, doctors, and other people. They should feel comfortable asking questions and explaining things.

Other things to think about

Pick a backup person. Always choose a second person in case your first choice can’t help.

Be careful about picking more than one person for the same POA. Having two agents might seem safer, but they might not agree on what to do. This is different than choosing one person for financial POA and a different person for health care POA.

Write down your wishes. You can tell your agent how you want things handled. You can also set limits on what they can do.

Have someone check on your agent. You might want another family member to make sure your agent is doing a good job.

Look at your papers every few years. Things change, so you should update your power of attorney when needed.

Get help from a lawyer

You can find power of attorney forms online, but don’t do this alone. A lawyer who knows about elder law can help you. They can make sure yours are done right and follow your state’s rules. It costs some money to hire a lawyer, but it’s worth it. Fixing mistakes later costs much more.

Nobody likes to think about getting sick or not being able to make decisions. But planning ahead shows you care about yourself and your family. By doing this now, you get to choose who will help you instead of letting someone else decide.