Aging is not much fun. Along with physical or mental decline comes the loss of personal freedom and social independence. Some of us come to rely on family members or close friends to handle our affairs, including finances and medical issues. But sometimes a person who is acting in our best interests is unable to proceed past a certain point. He or she may be told that current laws prohibit various agencies from providing information or completing transactions with the presence or signature of a disabled family member. Delays can lead to difficulties in handling business matters for those who are unable mentally or physically to sign documents and get the work done.

Frustrations like these can be avoided when a debilitated person assigns his or her power of attorney to a trustworthy relative, friend, or business associate. This form, when duly executed, allows the designated person to act on behalf of the one who is transferring authority. Even a healthy person can choose to empower someone else to represent his or her interests in business or medical matters, including buying and selling decisions and duties.

What is a power of attorney?

A power of attorney lets a designee manage things like real estate transactions, loans, property repairs, investments, and any kind of banking needs. In addition, a medical power of attorney allows the representative to make decisions related to the health and well being of the other person, including life-and-death matters that can occur suddenly, and thus must be prepared to carry out the wishes of the person who has conveyed representation on the POA. Situations demanding such decisions can occur suddenly, for example, when an accident occurs or if an ill person’s condition declines sharply. Inserting or withdrawing a feeding tube, surgery consent, and life support will depend on the POA’s decisions, which hopefully represent those of the person who has handed over personal representation to the family member or friend with power of attorney.

Often the person with power of attorney must arrange home care or nursing care for an elderly person, which can be stressful and challenging. In managing a sick person’s medical and material needs, the caregiver who has been designated as power of attorney will act as a liaison between the family member and other entities, including banker, social worker, physician, investment officer, and sometimes bill collectors or the landlord. Upon producing a certified copy of the form, the POA earns the right to represent the person whose name appears on the document in just about any type of formal proceeding.

How can you make POA arrangements?

How do you get a power of attorney form? These can be found on the Net or purchased at legal supply stores. Many people make an appointment with an attorney to take care of this business. It will cost more when you meet with a lawyer, but you can rest easy knowing that the process was conducted properly through appropriate channels. Costs will vary, so check with your attorney beforehand to avoid surprises.

Two kinds of POA forms may be executed: one covers business and financial transactions while the other provides the designee with authority for governing medical decisions in addition to business matter. Of course, it helps with the older or disabled person also has prepared a Living Will and a Last Will and Testament to coincide with the power of attorney. The person assigning power of attorney and the person who has agreed to take this role should spend some time discussing the form and all the terms described therein to make sure both parties understand all that is entailed. In some cases the form may be altered to add or limit the POA’s authority. Usually such changes are made with an attorney’s assistance. Both persons will need to sign the form before a notary public, which can be found at most banks, who will verify their signatures. The notary then adds his or her signature and seal as a witness. A notary’s service is usually quite reasonable depending on where you live. Many banks provide this service free of charge when you have an account there.

Make it official

The next step is to file the Power of Attorney form at your county Recorder's Office. Be sure to get three certified copies, which many financial institutions will request when you attempt to represent your loved one’s interests. The person assigning power of attorney as well as the person accepting this role should get a certified copy of the document.

As soon as you receive a certified copy, you are entitled to conduct business on behalf of the assignee, or person who has asked you to serve as power of attorney. It is important to work in tandem with the person who has assigned this right. Two people working blindly from the same checkbook or other documents can create chaos in a very short time.

It is a good idea to have an estate planning or probate attorney look over the documents if he or she does not prepare them to be sure that everything falls into place and relays the assignee’s wishes. If possible, try to get the assignee’s family members to accept the power of attorney’s role to avoid later misunderstandings or disputes. Try to get everyone informed up front as to what is going on so no one will be unpleasantly surprised later.

Does the POA automatically become the executor of the disabled person’s will?

An executed power of attorney form does not carry over to the role of "executor" or "administrator" of the person's estate upon death. The person's "will" handles business and legal matters after someone dies, and an attorney opens an "estate" on behalf of the deceased. The power of attorney ceases upon either person’s death or the POA’s inability to continue representing the loved one.

When the named power of attorney cannot continue in the role or wishes to step down, the older person may wish for two people to share the duty. Another option is that the power of attorney can be transferred from one person to another for any number of reasons. For specific questions, contact an attorney to be sure your family member has adequate representation and protection.