In 2022, roughly 4 percent of adults 65 and over received a dementia diagnosis. That percentage increases with age, becoming 13.1 percent by age 85.
Dementia is a progressive disease that worsens over time. What starts as forgetfulness can become very debilitating and lead to a lot of confusion for the senior and their loved ones. It’s important to establish some external control over their healthcare and finances.
Here’s how a power of attorney document can help and why you’ll want one.
What is a Power of Attorney?
A power of attorney is a legal document that grants another person the authority to make decisions on behalf of another person. The principal is the person who gives this authority to the other person, also known as the agent.
It serves as a type of estate planning tool for seniors who may eventually need assistance with their financial, medical, or legal affairs.
A lawyer should draw the power of attorney document to meet a person’s specific circumstances. You may need witnesses and a notary to finalize the agreement.
Whoever is chosen to act as the agent can make certain decisions without the need to speak with the principal. That means they can help find a senior community on behalf of someone with dementia or handle healthcare appointments.
Types of Power of Attorney
Not all power of attorney documents are made equal. Some focus more on the financial side of a person’s life while others cover more general areas. A lawyer can help a family decide what kind is right for their loved one and their needs.
General Power of Attorney
General power of attorney gives the agent broad authority over another person’s financial decisions and legal matters. It’s a comprehensive option that usually goes void when if the principal becomes incapacitated.
A senior might utilize this if they want assistance with complex financial or business matters.
Durable Power of Attorney
A durable power of attorney is one of the most common options for seniors. It remains in effect even if they become incapacitated and is a good option for those concerned about future cognitive decline.
In addition to covering financial matters, a durable power of attorney also allows a person to make healthcare decisions.
Healthcare Power of Attorney
Seniors may opt for a healthcare power of attorney if they specifically want their agent to make healthcare decisions on their behalf. These are often paired with a living will or an advance healthcare directive.
You may want one of these if you’re preparing for a serious surgery and want to authorize a spouse or adult child to make medical decisions.
Limited Power of Attorney
A limited power of attorney gives the agent authority over a specific task or series of tasks. Seniors may utilize this option if they need help with something like selling a house or handling a major investment transaction.
As such, this is one of the easiest powers of attorney to create and use. Once the task is completed, the POA becomes void.
Springing Power of Attorney
Seniors who are concerned about their future incapacity can establish a springing power of attorney. This kicks in when a specific event happens, such as the principal’s incapacitation.
A senior may choose this type of document if they want to retain their rights for as long as possible.
Rights and Limitations
The agent’s rights will vary depending on the type of POA they have. However, there are certain legal limitations to consider.
First of all, the POA cannot transfer to another agent at any time. The principal would have to dissolve the initial power of attorney and establish a new one.
The POA becomes void after the death of the principal. Instead, the executor of the estate would take over.
Finally, the power of attorney cannot use the principal’s assets or money as their own. They can only use those assets as outlined in the agreement.
Why Power of Attorney Matters for Seniors
Not every senior will agree to give someone power of attorney. It’s a big decision, and some may see it as giving up more of their independence. However, there are various benefits to a POA that every person should know.
Financial Security
A power of attorney ensures that someone can manage your finances, even when you’re unable to. That means paying bills, handling property, and making important financial decisions. It’s especially important if a senior has some kind of memory issues.
Healthcare Decisions
By creating a healthcare power of attorney, seniors can ensure that they are taken care of throughout their medical journey. If they are unable to communicate their wishes, their agent can do so for them. The power of attorney acts as a guide so families know what their loved one would want.
Avoiding Guardianship
In the case of a senior becoming incapacitated, their family may struggle to get guardianship over them. Assigning a power of attorney means that they can prevent the need to petition the court for guardianship. Instead, the POA will already have the authority to make these important decisions.
Senior Legal Considerations
When a senior creates a power of attorney, they need to consider elder law in Voorhees, NJ. They should choose an agent they trust and consult with an attorney. The attorney can provide legal advice for seniors in NJ or whatever state they’re in.
Never use a POA you found online. Always have one made to fit your specific needs and desires. The principal must have the legal capacity to create a POA.
Finally, living in a retirement community does not give up their rights. Neither does relying on a caregiver for daily tasks.
Follow This Power of Attorney Guide
The entire purpose of a power of attorney is to hand over some of your responsibilities to another person so they can handle things when you can’t. For some, that means making better financial decisions. Others may rely on a POA to protect themselves when they’re incapacitated.
If you’re in need of independent living with supportive services, look no further than Seaton Voorhees. Our retirement community provides personalized care and service so you can live more comfortably. Reach out with any questions or to set up a visit.
