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As loved ones age, their ability to handle daily tasks and make important decisions can change. Watching someone you care about face these challenges is never easy, and you may wonder how best to support them. Planning ahead can help ease those worries and protect their well-being. One way to provide that support is by having the right legal tools in place to ensure their financial needs are managed with care and in accordance with their wishes.
What Is a Power of Attorney?
A Durable Power of Attorney (POA) is a legal document that gives someone you trust the authority to handle matters on your behalf, even if you become incapacitated. This person, called your agent, can manage tasks such as paying bills, accessing bank accounts, handling investments, or even selling property. You decide how much authority your agent has, whether it’s broad control over all financial matters or limited to specific tasks.
A durable POA remains in effect if you are unable to make decisions for yourself, making it particularly helpful for aging loved ones who may face difficulties managing day-to-day finances. Choosing a reliable agent is key, as they will have access to your loved one’s personal finances. This document ensures that their financial needs are met without unnecessary delays or complications, offering peace of mind for both them and their family.
How a POA Supports Aging Loved Ones
A POA provides a reliable way to ensure that your aging loved ones’ financial needs are managed smoothly, especially as they face challenges with handling their own affairs. When properly set up, a POA can relieve stress and prevent financial mishaps. Here’s how a POA can support your loved ones:
- Paying bills on time: Your loved one’s agent can ensure that utility bills, medical expenses, and other financial obligations are consistently handled to avoid late fees or service interruptions.
- Managing bank accounts: Whether it’s transferring funds, depositing checks, or accessing account balances, the agent can handle these day-to-day responsibilities seamlessly.
- Overseeing investments: A trusted agent can manage investment accounts, monitor performance, or make adjustments based on your loved one’s financial goals.
- Selling or managing property: If downsizing becomes necessary, an agent can sell or manage real estate to support your loved one’s needs.
Having a POA in place means your loved one doesn’t have to worry about missed payments or overlooked financial matters. It also prevents family disputes by clearly assigning responsibilities. A POA is a proactive step that protects your loved one’s financial security while respecting their wishes.
Steps to Take When Setting Up a POA
Setting up a POA involves a few important steps to ensure it fits your loved one’s needs. Here’s how to get started:
- Choose a trusted agent: Select someone reliable and capable of managing financial responsibilities. This person should understand your loved one’s values and goals.
- Determine the scope of authority: Decide whether the POA will grant broad authority over financial matters or focus on specific tasks, like paying bills or managing investments.
- Decide when it takes effect: A POA can take effect immediately or only if your loved one becomes incapacitated. Discuss this decision with your loved one to reflect their preferences.
- Consult with an attorney: Work with a legal professional to draft the document and ensure it complies with state laws.
- Sign and store the document: The POA must be signed, witnessed, and notarized according to legal requirements. Keep the original in a safe but accessible location.
Taking these steps early can prevent financial confusion and help your loved one maintain control over their future. It’s a practical way to protect their well-being and offer reassurance and stability for everyone involved.
Start Planning Today
A Power of Attorney is a vital tool to protect your aging loved one’s financial well-being and provide peace of mind for your family. At Bozanian McGregor, LLC, we can help you create a POA that meets your loved one’s needs and ensures their wishes are honored. Don’t wait to take this important step—contact us today to schedule a consultation and learn how we can support your family’s planning for the future.