I've Been Appointed My Aging Parents' Power of Attorney but What Now?

We see recurring confusion about what it means to be appointed with authority over money in a Durable Power of Attorney (DPOA) for aging parents.

A durable power of attorney is frequently signed by aging parents. However, sometimes the elderly can misunderstand exactly what that entails, especially when it comes to the authority of the person given decision-making powers.

The person appointed (called the agent or attorney-in-fact) is also typically an adult child. Nevertheless, he or she may be unaware of the appointment or does not grasp what is permitted and when it is permitted. It can be very confusing.

Here are three frequently asked questions:

Can a parent with dementia revoke a previously signed DPOA and appoint a different child?

Perhaps. Medical evaluation is necessary to determine if the parent retains financial capacity. If capacity is confirmed, revocation is possible. However, if the parent lacks mental capacity, they cannot legally revoke the document.

If the parent is incapacitated, when can an appointed agent use their authority?

The agent may assume financial control immediately, provided the DPOA document’s requirements are met. Some documents require physician certification of incapacity; others become effective immediately.

Can an agent prevent the parent from making imprudent financial decisions?

Yes. The DPOA typically grants the agent comprehensive authority over all financial matters.

Contact our office today to schedule a consultation.