by Kristen Ishihara and Chris Parker with Ishihara & Parker Law Firm PLLC

When it comes to planning for the future, power of attorney (POA) is one of those topics that can be confusing, yet it’s incredibly important. Whether you’re thinking about appointing someone as your agent or you’ve been named as one, there are a few key things you need to know.

Should You Have Co-Agents?

Imagine this scenario: A husband and wife are getting older, and one of them may need extra care in the future. The wife might say, “Hey, if something happens to my husband, I’d like some help taking care of him.” That’s where co-agents come in.

In some families, having an adult child serve as a co-agent alongside a parent can be helpful. It takes the pressure off the spouse, who may already be overwhelmed. That said, this setup isn’t right for everyone. It’s just something to consider when planning your POA.

What Can an Agent Actually Do?

Let’s say your mom names you as her financial power of attorney. Does that mean you can sell her house, move her to assisted living, or tell her to stop spending money on Amazon? Not exactly.

Here’s the deal: As her agent, you are only allowed to do what she has instructed you to do or what you know she would want if she couldn’t make decisions herself. Mom is always the boss. If she decides to buy a car and you disagree, she still has the final say.

Also, if your parent changes their mind and wants to remove you as their agent, they can do so in writing at any time. If you find yourself in a situation where your parent is refusing help, but you believe they need it due to a medical condition, you may need to pursue guardianship instead. That’s a different legal process altogether.

Institutions May Not Accept Your POA

Just because you have a power of attorney document doesn’t mean every institution will accept it. For example, if you take it to a bank, they’ll do a legal review before allowing you to act on your parent’s behalf. Some places, like the Social Security Administration and the VA, don’t accept POAs at all. Instead, they have their own processes for appointing representatives.

So, what should you do? If you’re named as someone’s financial POA, go with them to their bank and financial advisor while they are still capable of handling their affairs. Some institutions may require additional forms to be completed, so it’s better to get that sorted early rather than dealing with roadblocks later.

The Importance of Having a Medical POA

A medical power of attorney is just as important as a financial one. However, it only becomes effective if the person is unable to make their own medical decisions. If you’ve been named as a medical POA, you should make sure the document is on file with your loved one’s doctors and healthcare providers. This can save a lot of hassle down the road.

Also, if you’re not in the medical field, you might want to familiarize yourself with your loved one’s medications and conditions. Medical decisions can be overwhelming, and having some knowledge in advance can help you make informed choices if the time comes.

Final Thoughts: What Should You Do Now?

If you’ve been named as someone’s power of attorney, here’s your to-do list:

1. Get a copy of the POA document. You can’t act if you don’t have it!
2. Understand the details. Is it effective now or only if the person becomes incapacitated? Where are you in the order of agents?
3. Make sure the right people have the document. Banks, financial advisors, and doctors need to be aware of it so that if and when you need to step in, there are no surprises.

At the end of the day, power of attorney is a fantastic tool for avoiding court involvement and ensuring someone you trust is there to help. But it only works if you take the right steps ahead of time. If you’re the chosen agent, do yourself (and your loved one) a favor by making sure everything is in place before it’s needed.

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