Care of Parents Means Care of Finances - Underscoring the Need for a Power of Attorney
In a companion piece to "How to Talk Money with Mom and Dad" , in Money Magazine this month, the New York Times has an article "Taking Care of Parents Also Means Taking Care of Finances".
The article illustrates that "care" goes beyond health and safety - caregivers also have to look to where the money is coming from and how they, as caregivers, can have access to it. I appreciate the article emphasizing caregivers to READ and UNDERSTAND their parents General Durable Power of Attorney.
As an Elder Law Attorney, I believe that a General Durable Power of Attorney is the single most important document for seniors to have and to update. A General Durable Power of Attorney allows you to name an person to make financial decisions for you if you cannot.
- Without any General Durable Power of Attorney should you become incapacitated, a court supervised Guardianship proceeding must take place (trust me, a circumstance to be avoided at all costs).
- Without a complete and current General Durable Power of Attorney, a Guardianship may still be necessary because your attorney-in-fact is not clearly authorized to take some action (making gifts is a big one here in NJ).
- Without looking at State law, a General Durable Power of Attorney may be new and done, but not address all the issues of agency law in that state. New York just substantially changed its General Durable Power of Attorney laws this month, and out of state forms (or Internet generated forms) may not be effective.
The article ends with great advice - search the National Association of Elder Law Attorneys Website for a attorney who can advise you if your General Durable Power of Attorney is working for or against you.
