Quick answer
A power of attorney (POA) is a legal document in which your parent (the principal) names someone (the agent) to act for them. A financial POA covers money and property; a health care POA, often called a health care proxy or durable power of attorney for health care, covers medical decisions. A "durable" POA stays in effect if your parent loses capacity. Your parent must be able to understand what they're signing, so plan early. Rules vary by state; an elder law attorney can help.
The main types
| Type | What it covers |
|---|---|
| Durable financial power of attorney | Banking, bills, property, benefits; continues if your parent loses capacity |
| Health care power of attorney | Medical decisions if your parent can't make them |
| Limited or specific POA | One task or a set time |
| Springing POA | Takes effect only when a set event happens, such as incapacity |
Many families also put in place a living will or advance directive.
When to set it up
While your parent can understand and sign. After capacity is lost, the family may need to go to court for guardianship or conservatorship, which takes longer and costs more.
What an agent does
- Acts in your parent's best interest, not their own.
- Keeps your parent's money separate from their own.
- Keeps records of what they do.
- Follows the document's limits.
The Consumer Financial Protection Bureau publishes free guides for people managing someone else's money.
How to get started
- Talk with your parent about who they trust.
- Use an elder law attorney or your state's approved forms.
- Store copies safely and give them to the agent, doctors and banks as needed.
- Review the documents every few years.
Planning ahead for a parent?
We can point you to local resources while you plan care and housing. Free.
Questions families ask
What is a durable power of attorney?
A power of attorney that stays in effect if the person loses the ability to make decisions.
Can I get power of attorney if my parent has dementia?
Only if your parent can still understand what they're signing. Talk to an attorney.
What's the difference between POA and guardianship?
A POA is chosen by your parent; guardianship is set by a court when no valid POA exists.
Does a POA let me make medical decisions?
Only a health care POA covers medical decisions.