Many nursing homes will draft a power of attorney for their residents. Doing so is often framed as saving money. However, if a power of attorney is done without an examination of the circumstances, it can cost many times more money than it saves.
A power of attorney gives someone you trust the power to sign financial documents for you. If you lose the ability to make financial decisions or you are away on vacation or business, your agent can act for you.
We find many of our clients have powers of attorney but they are old. Now, more than ever before, it is time to update your power of attorney. Here are 5 reasons to do so.
For elderly parents, once simple tasks become harder to accomplish. One of those tasks is financial management. Without help, a parent can become confused and derail his or her retirement plan. Bills go unpaid. Dividend checks get lost. Duplicate checks to the same charity or vendor begin to appear. The situation begs for children to step in and organize the parent’s finances.
If your parent is in this situation, you need to take these five steps:
