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You may have wondered what happens if your aging parent ends up losing their ability to make financial or health decisions. How will you or other family members help them in these circumstances; how will you know what to do? A power of attorney, or POA, provides the legal ability to decide on another person’s behalf, like a loved one or an aging parent.
A POA is a legal document that provides a person, referred to as the attorney-in-fact or agent, the authority to make decisions and take action on behalf of another person, known as the principal. Depending on the POA’s terms, the agent will have either limited or extensive authority to make a legal decision about the principal’s:
There are certain steps you need to take to create a power of attorney. These include:
There are various types of POAs, including:
Suppose you are incapacitated or take care of a person who has no power of attorney chosen to handle things. In that case, your family will potentially be forced into time-consuming and costly delays. A power of attorney can be reassuring as a way to protect your real estate and financial interests, medical needs, health, and maybe even the manner of your death.