Your parent is in the hospital and can't communicate. The bank won't let you access their account to pay bills. The doctor needs someone to consent to surgery. Without the right legal documents in place, you may have no authority to help—even as their adult child.
Power of attorney documents are essential for anyone caring for an aging parent. They allow you to make decisions and handle affairs when your parent cannot. But they must be set up while your parent still has mental capacity to sign them.
Power of attorney must be signed while your parent has mental capacity. If they develop dementia or have a stroke and can no longer understand what they're signing, it's too late—you'll need to pursue guardianship through the courts, which is expensive and time-consuming. Don't wait.
Types of Power of Attorney
| Type | What It Covers | When It's Effective |
|---|---|---|
| Financial POA | Banking, property, investments, paying bills, managing assets | Immediately or upon incapacity (depending on how it's written) |
| Healthcare POA (Healthcare Proxy) | Medical decisions, treatment consent, care choices | When person cannot make their own medical decisions |
| Durable POA | Financial or healthcare | Remains valid even after incapacity (most important feature) |
| Springing POA | Financial typically | Only becomes effective upon incapacity |
| Limited POA | Specific tasks only | For specific transactions or time periods |
Regular power of attorney ends when the person becomes incapacitated—exactly when you need it most. Make sure your documents say "durable" power of attorney, which means they remain valid even after your parent can no longer make decisions. This is essential.
Financial Power of Attorney
What It Allows You to Do
- Access bank accounts and pay bills
- Manage investments and retirement accounts
- File taxes
- Buy or sell property
- Handle insurance matters
- Manage business interests
- Apply for government benefits
- Make gifts (if document allows)
What It Does NOT Allow
- Make medical decisions (that's healthcare POA)
- Change their will
- Vote on their behalf
- Make decisions after their death (that's the executor's role)
Immediate vs. Springing
- Immediate (recommended): Effective as soon as signed; easier to use; relies on trust
- Springing: Only effective upon incapacity; may require proof of incapacity which can be difficult to obtain
Power of attorney is powerful—and can be abused. Choose someone trustworthy. Consider naming two people who must act together for large transactions. Some families keep the document with an attorney until needed. Build in accountability.
Healthcare Power of Attorney
Also Called
- Healthcare proxy
- Medical power of attorney
- Healthcare agent
- Patient advocate designation
What It Allows You to Do
- Make medical treatment decisions
- Consent to or refuse treatment
- Choose doctors and facilities
- Access medical records
- Make end-of-life decisions
- Decide about life support and resuscitation
When It's Active
Healthcare POA only takes effect when your parent cannot make their own medical decisions. As long as they have capacity, they make their own choices. The document kicks in when:
- They're unconscious
- They're too confused to understand options
- They're unable to communicate
- A doctor determines they lack decision-making capacity
How to Get Power of Attorney
Requirements
- Your parent must have mental capacity: They must understand what they're signing
- Must be voluntary: No coercion or pressure
- Proper document: State-specific forms or attorney-prepared
- Signatures and witnesses: Requirements vary by state
- Notarization: Required for most financial POAs
Options for Creating Documents
| Option | Cost | Best For |
|---|---|---|
| Elder law attorney | $300-1,000+ | Complex situations, large estates, family conflict |
| Online legal services (LegalZoom, etc.) | $50-200 | Simple situations, tech-comfortable users |
| State-specific forms (free online) | Free-$50 | Very simple situations; may not cover everything |
| Hospital or doctor's office | Usually free | Healthcare POA only; during medical crisis |
For most families, spending a few hundred dollars on an elder law attorney is worthwhile. They ensure documents are properly executed, cover state-specific requirements, and can advise on your particular situation. The cost of fixing problems with DIY documents often exceeds attorney fees.
What If They Already Lack Capacity?
If your parent has dementia or is otherwise unable to sign legal documents:
Guardianship/Conservatorship
- Court process to appoint someone to make decisions
- Requires petition, medical evidence, hearing
- Costs $2,000-10,000+ in legal fees
- Takes weeks to months
- Court oversight of guardian's actions
- May be contested by other family members
Limited Options Without Legal Authority
- Banks may add you to accounts (with their cooperation)
- Social Security can assign a representative payee
- VA can assign a fiduciary
- Some states have simplified procedures for certain situations
- Emergency guardianship for immediate medical decisions
Guardianship is expensive, time-consuming, and removes your parent's legal rights. POA documents signed while they have capacity avoid all of this. If your parent has early dementia, they may still have capacity to sign—have an attorney assess immediately.
Using Power of Attorney
Tips for Using Financial POA
- Bring the original document and your ID
- Some banks require their own POA form—start early
- Keep detailed records of all transactions
- Act in their best interest, not yours
- Keep their money separate from yours
- Be prepared for resistance from institutions
Tips for Using Healthcare POA
- Know their wishes before you need to act
- Bring copies of the document to all medical appointments
- Ensure it's in their medical file at all providers
- Communicate with medical team about your role
- Consider their values, not just what you would want
Related Documents
Living Will (Advance Directive)
Specifies what medical treatment they do or don't want at end of life. Works with healthcare POA but provides written guidance.
HIPAA Authorization
Allows you to access their medical information. Healthcare POA usually includes this, but a separate form can be helpful.
Will
Handles what happens after death. POA ends at death—the executor then takes over.
Trust
Holds assets and may avoid probate. Can work with or instead of POA for some purposes.
Get Organized
Our Estate Planning Workbook helps you identify what documents you need and organize the information attorneys require.
Get the Complete Caregiver Kit- POA must be signed while your parent has mental capacity—act now
- You need both financial and healthcare POA
- Make sure documents say "durable" so they survive incapacity
- Consider using an elder law attorney for complex situations
- If they already lack capacity, you'll need guardianship (expensive)
- Distribute copies to banks, doctors, family members
- POA ends at death—then the executor takes over
Frequently Asked Questions
What type of power of attorney do I need for an elderly parent?
You typically need a Durable Power of Attorney for finances (handles money, property, legal matters) and a Healthcare Power of Attorney (makes medical decisions when they cannot). 'Durable' means it remains valid if they become incapacitated. Some states combine these; others require separate documents. A Durable POA is essential for managing affairs if dementia develops.
Can I get power of attorney if my parent has dementia?
Your parent must have mental capacity when signing the POA—they must understand what they're signing. Mild dementia doesn't automatically disqualify someone, but moderate-to-severe dementia likely does. If your parent lacks capacity, you'll need to pursue guardianship or conservatorship through the courts, which is more expensive and time-consuming. This is why getting POA early is so important.
Does power of attorney give me access to bank accounts?
A properly drafted Durable Financial Power of Attorney typically grants authority to manage bank accounts, including writing checks, transferring funds, and paying bills. However, banks may have their own POA acceptance procedures. Some require their own forms. Bring the POA document to the bank before you need to use it to ensure smooth acceptance.
When does power of attorney end?
Power of attorney ends when the principal (your parent) dies, revokes it while mentally competent, or a court revokes it. It also ends if the agent (you) dies, becomes incapacitated, or resigns. Some POAs are 'springing' and only activate upon incapacity. After death, the POA has no authority—the executor of the estate takes over.