Power of Attorney

Power of Attorney (POA)

Like a medical power of attorney, this document designates a representative to handle your affairs when you are unable to.  There are two types of POAs.  One is a limited POA where you specify exactly what a person can do in your name (like buy or sell a property in another state if you can't be there) and for what specific time period.  The second is a Durable POA and is in effect until your death or if you change it in the future.  A POA can be a legal way for your representative to handle your bank accounts, buying and selling property, or any number of other situations.  As with the medical POA, you need to be very careful in who you select to represent you, and be sure to have an alternate. 

As your parents get older or have limited mobility, a POA will allow you, as their representative, conduct their normal business dealings and sign for them on legal documents if they are housebound or in a nursing home. 

In my case, my father's Alzheimer's came on in spurts at first so we had some warning that he would eventually be unable to make important decisions on his own.  My mother and I were able to have an attorney write up wills, medical POAs and durable POAs for both of them while he was still coherent enough to understand and sign them in front of witnesses and the notary.  As his representative, I was able to sign for him in the sale of property they owned jointly in another state and sign again to purchase their new home.  It also helped us when we arranged to have my mother named his "representative payee."  For information on being named a representative payee for a minor child or incompetent adult through Social Security, see http://www.socialsecurity.gov/payee/faqrep.htm.  Be aware of all the requirements for being named the person responsible for someone's Social Security benefits.  If the person is in the hospital or a nursing home, you will need a doctor to attest to their incompetence.  Otherwise, it could prove a difficult situation requiring attorneys and courts to get it settled.