As an adult, you want to do everything you can to maintain your parents’ well-being. But as your parents age, their financial and legal situation can become increasingly difficult to manage alone, or alternatively, they might simply want to take a step back from managing their finances to make the most of their retirement. Assigning a power of attorney (POA) to a professional fiduciary is a great way to reduce the burdens you and your parents carry. This legal tool grants someone else the authority to act on your parent’s behalf. But many people wonder how to get a power of attorney for a parent.

At Marcia L. Campbell CPA, we have helped countless seniors manage their finances, though we typically use a trust because it is a more flexible option. With us, you and your parents can make the most of their golden years knowing your folks and their finances are in expert, reliable hands. Here’s what to know about getting a POA:

When Do You Need a Power of Attorney for a Parent?

Before getting into how to get a power of attorney for a parent, let’s get into when to get a power of attorney. 

In many cases, people elect to get a power of attorney when they suspect their parent is in a state of cognitive decline or is about to undergo a medical procedure and could potentially be unable to oversee their finances. This could be a result of being incapacitated or having Alzheimer’s or dementia.

But you can also use a power of attorney to help manage your parent’s finances if, for example, they are having difficulty staying on top of their bills or budgeting effectively, or they are too susceptible to financial scams.

Another great but often overlooked use of a power of attorney designation is for when your parents simply want to take a step back from their finances to travel or kick back and relax. Take, for example, a client I worked with who we will call Mr. B.

Mr. B came to me and expressed that he always had a desire to travel the world. And in retirement, he and his wife started going on cruise ships and spending up to three months at a time in different parts of the world.

But he couldn’t truly make the most of these bucket list experiences because he was always preoccupied with making sure his finances were under control back home. 

He made me his POA so he wouldn’t have to deal with any of his finances while he gallivanted around the world. I paid the bills, monitored his income, and when he came back, the POA stopped. It was a perfect set up for him. 

All Mr. B wanted was to have fun and enjoy his months-long trips without having to think about the financial responsibilities he had to take care of, and I enabled him to do that. Because, after all, isn’t that what retirement is for? 

No matter the circumstances, using a professional fiduciary with a power of attorney is the surest way to ensure their finances are taken care of. 

Related Article: How Can a Financial Power of Attorney Help Manage Your Parents’ Finances?

How to Get a Power of Attorney for a Parent in California

Getting a power of attorney for a parent requires several steps. From sitting down and having a conversation to hiring a professional, let’s get into it. Here’s how to get a power of attorney for a elderly parent and how a professional eases the burden on your shoulders.

1. Talk to Your Parent
2. Gather the paperwork
3. Fill out the paperwork (DO NOT SIGN YET!)
4. Meet with a Notary to Sign
5. File the Form Appropriately
6. Use Professional Fiduciary Services

Related Article: Durable Power of Attorney for Management & Seniors

1. Talk to Your Parent

Your parent must be mentally competent to make their own decisions. If they are experiencing cognitive decline, learning how to set up a power of attorney ASAP is crucial. 

If you wait until they lack the mental capacity to make these decisions, they can not legally grant this power. Sit down with them, explain the different types of POA available to them, and decide together what is best for their situation.

There are several POA types available in the state of California, all of which serve different purposes. Types of power of attorney forms available in California include:

• Durable – Also called a financial power of attorney, these POAs only remain in effect if the Principal becomes incapacitated or incompetent.
• General (also referred to as nondurable) – General POAs are the same as durable, except the powers granted to the agent become voided if the person being represented becomes incapacitated (mentally or physically).
• Guardianship (also referred to as parental POA) – A guardianship is a short-term guardian for one or more minor children. This covers the child(ren)’s education, health, and everyday care.
• Limited (otherwise known as a “specific” power of attorney) – A limited POA allows a resident of the state to designate an agent to take care of a specific financial matter on their behalf. The matter can be as small as picking up a car to as big as selling or buying real estate.
• Medical (or “Advance Directive”) – A medical POA is granted for health care decision-making when the parent may not be able to represent themselves.
• Tax – A tax POA is used to allow someone else (mostly accountants) to handle another’s Federal and State income tax filing.
• Vehicle (also referred to as DMV Form REG-260) – This POA permits an owner of a vehicle or vessel located in California to choose an agent to handle a transfer of ownership.

“Approach this conversation with tact. Always keep in mind how difficult it is for your parents to consider having to relinquish control and the possibility of cognitive decline. This reality is never easy to face. Reiterate that this is for their well-being and that you are only trying to look out for their best interests.”

– Marcia L. Campbell, Professional Fiduciary

Working with an attorney from the beginning is crucial to selecting the appropriate POA for your parents and their situation. 

Related Article: How Do You Talk to an Aging Parent About Finances? Pt. I

2. Gather the paperwork

Gathering paperwork is the next step when determining how to get a power of attorney for a parent. You need to find the right paperwork depending on which type of POA you and your parent decide is right for them. 

You can see the California forms we mentioned above at https://powerofattorney.com/california/. You will need to print this document and bring it to your parent to fill out.

Related Article: How to Prepare for Taking Over Elderly Parent’s Finances

3. Fill out the paperwork (DO NOT SIGN YET!)

All the forms should come with printed instructions on how to specify powers. But the basic aspect of this tool that confuses most people is who represents which power. 

If you are taking power of attorney, that makes you the “attorney-in-fact” or “agent.” (No, you do not have to be an attorney to be their power of attorney!) Still, we generally advise against taking on this responsibility unless you have bandwidth, expertise, and time.

Your parent is the “principal,” so you write their name and address on the space labeled “principal.” Before signing the document, we advise working with an attorney to tailor the terms to your parents’ needs. 

“People often fail to realize how flexible this document can be. For example, if your parents just need a Power of Attorney for a short period while they are on a long holiday, in the hospital, or for any other specific period, an attorney can ensure this document reflects that. In other situations, if your parents simply need help managing their finances, you can designate a power of attorney over a specific bank account that holds money so they can pay bills on their behalf, budget for them, monitor expenses, and alert you of any suspicious activity to prevent them from falling victim to scams.”

– Marcia L. Campbell, Professional Fiduciary

Note: Don’t sign yet! You will need to have your signatures witnessed by a notary to make the form valid.

4. Meet with a Notary to Sign

This step is probably the most important, but it can also cause stress if your parent is sick. You will need to have a notary present to sign the documents. 

Most local banks and hospitals have notary services available. Just be sure to call ahead so that you aren’t making a wasted trip. This step of the process is crucial to ensure that the document is legally binding. 

Working with a lawyer will also ensure that you fulfill all necessary California state requirements for a legally valid POA. 

Note: Be sure to bring your parent’s Identification Card, as they will need to identify themselves to the notary present.

5. File the Form Appropriately

Now that you have the documents signed and notarized, print copies for yourself and the legal entity that validates the form (e.g. a bank or attorney’s office). Give the original document to your parent (the principal) and find a safe place to store these forms.

6. Use Professional Fiduciary Services

Also, keep in mind that when you are appointed someone’s power of attorney, it comes with several duties. 

We advise hiring professional fiduciary services as part of the process of figuring out how to get a power of attorney for a parent because this is a full-time job and entails a broad range of tasks that include overseeing responsibilities like: 

• Paying bills
• Budgeting
• Managing income and expenses
• Handling tax issues
• Managing retirement benefits, like Social Security and Medicare
• Record keeping
• Managing retirement accounts
• Overseeing bank accounts
• Resolving credit disputes
• Sign checks
• Balancing checkbooks
• Coordinating with professionals, like attorneys, and CPAs for your parent
• Managing assets
• Protecting your parents from scams and fraud

Imagine how much time and work you will invest in managing your parent’s affairs. The person you choose for this responsibility needs considerable financial expertise and experience to ensure every aspect of this part of their life is taken care of. 

Taking on this responsibility alone results in a tremendous burden that could put a strain on your relationship with your parent, and failure to allocate the proper time and develop the necessary skills is a hazard for your parents. 

Also, complex family dynamics can make it complicated to assign someone with this responsibility, to say the least. Unfortunately, people often use this power for their gain or to put another family member, like a sibling, at a disadvantage. 

However, a professional fiduciary has a legal obligation to act in your parent’s best interest. This is known as their fiduciary duty.

“When you work with a professional fiduciary, they do much more than just oversee your parent’s financial affairs. These individuals foster a bond of trust with you and your parent and support their mental and emotional well-being. Plus, by relieving yourself of this responsibility, you can ensure you make the most of this time with your parents and provide you and your family with peace of mind. You can’t put a price on that.”

– Marcia L. Campbell, Professional Fiduciary

Related Article: How Do You Take Care of Elderly Parents’ Finances? Pt. II

So, Now You Know How to Get a Power of Attorney for a Parent! Need Help With Your Parent’s Finances?

Understanding the process regarding how to get a power of attorney for a parent is essential to provide everyone involved with peace of mind.

To ensure that your parents and their finances are in expert and dependable hands, visit our Contact Page or call our office at +1 (951) 686-3608 to schedule a consultation.