Caring for a loved one can mean transporting them to appointments, managing their meds, doing household chores, or helping them with daily activities. It can often mean managing their finances too.

Caring for a loved one often means taking on their transportation to appointments, managing their medication, completing household chores, or helping them handle their daily activities. But it can often mean managing their finances as well.

Studies show that the ability to perform simple math problems, as well as to handle financial matters, can be among the first skills to become more difficult as people age. No one wants to think of a time when their parent or a loved one may need them to step in and make decisions for their care when they are unable. But it’s important to learn about crucial financial and legal considerations before you truly need to know what your loved one’s wishes may be.

A Power of Attorney is a legal document that allows a person (called the "principal") to appoint someone else (an "agent") to act for them should they become unable to manage their own affairs, either because of age, illness, or injury. The agent is expected to place the principal’s interests ahead of their own, which is why it is important for you and your loved one to pick someone you trust. There are multiple types of decisions that the agent can be given the power to make, including the power to:

* Make financial decisions

* Make gifts of money or other property

* Make healthcare decisions, including the ability to consent to giving, withholding, or stopping medical treatments, services, or diagnostic procedures. (Note: your loved one can also make a separate “health care power of attorney” to give only this power to another individual.)

* Recommend a guardian

There are four primary types of Power of Attorney, each with its unique purpose:

GENERAL POWER OF ATTORNEY. In this situation, the agent can perform almost any act as the principal, such as opening financial accounts and managing personal finances. A general POA arrangement is terminated when the principal becomes incapacitated, revokes the power of attorney, or passes away.

DURABLE POWER OF ATTORNEY. This arrangement designates another person to act on the principal’s behalf and includes a durability clause that maintains the POA after the principal becomes incapacitated.

SPECIAL OR LIMITED POWER OF ATTORNEY. In this instance, the agent has specific powers limited to a certain area or certain time frame, for example, a POA that grants the agent authority to sell a home or other piece of real estate.

SPRINGING DURABLE POWER OF ATTORNEY. In some states, a “springing” Power of Attorney is available and becomes effective when a specified event occurs, such as when the principal's treating physician certifies that the principal has become incapacitated.

It’s helpful to have these conversations in happy times, when your loved one is well so you can determine their wishes for their financial security and healthcare should a time come when they are unable to make the choices for themselves. If you or a friend, family member, neighbor, or co-worker have questions about Powers of Attorney, give us a call at 253.858.5434 to see how we can help. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.