Which is best lasting or Enduring Power of Attorney?

Who is the best person to be a power of attorney?

The best person for a Power of Attorney (POA) is someone you trust implicitly, who understands your values, is responsible, emotionally stable, and willing to take on the significant commitment of managing your affairs (finances/healthcare) in your best interest. Common choices are spouses, adult children, or trusted friends, but professionals (lawyers, fiduciaries) can also serve, especially if family dynamics or complexities exist. The ideal agent is organized, communicates well, and can make logical decisions, with proximity being a plus, but trust and integrity are paramount. 

How do I protect my elderly parents' bank accounts?

To protect your elderly parents' bank accounts, start with open, respectful conversations, then implement practical steps like setting up a Durable Power of Attorney (POA) for financial management, adding a Trusted Contact Person at their bank for suspicious activity alerts, and automating bill payments while securing logins and educating them on scams. Consolidating accounts, freezing credit, and ensuring beneficiaries are listed also help prevent fraud and ensure smooth asset transfer, say experts from Visiting Angels, U.S. Bank, and Bank of America. 

Can a POA withdraw money from a bank account after death?

No, a power of attorney (POA) automatically ends at the principal's death and grants no authority to withdraw funds from a bank account; the bank will freeze the account, requiring the executor (named in the will) or administrator (appointed by court) to provide the death certificate and court documents to access funds for the estate. Only joint owners, POD (Payable on Death) beneficiaries, or court-appointed representatives (like an executor) can access funds after death, not the former POA agent. 

What are common POA mistakes to avoid?

Common Power of Attorney (POA) mistakes to avoid include choosing the wrong agent, failing to clearly define powers and limitations, not making the POA durable if needed for incapacity planning, neglecting to update it regularly, and waiting too long to create one, often leading to issues like banks not accepting generic versions or outdated instructions. 

Which is better, power of attorney or durable power of attorney?

A general power of attorney gives someone wide legal authority. However, it ends if the person giving it becomes unable to make decisions. In contrast, a durable power of attorney stays in effect even if the person loses mental capacity. Both types are important for different situations.

How much do lawyers charge for a power of attorney?

A lawyer's cost for a Power of Attorney (POA) typically ranges from $200 to $600 for simple documents, often with a flat fee, but can go higher for complex situations, with average flat fees around $300-$500 and hourly rates between $250-$350. Costs vary based on document complexity (financial, medical, limited), attorney experience, location, and if it's part of an estate planning package.
 

Who is the best person to have power of attorney?

Choose your attorney

• a relative.
• a friend.
• a professional, for example a solicitor.
• your husband, wife or partner.

What is better than power of attorney?

What's considered "higher" than a Power of Attorney (POA) is usually a court-appointed Conservator (or Guardian), which has broader authority over someone deemed incapacitated, or an Executor/Personal Representative, who manages affairs after death, with the court giving them formal authority (Letters Testamentary/Administration) to override a POA's lifetime authority if needed. A POA is private and ends at death, while conservatorship is court-supervised and an executor's role begins at death. 

What's the best power of attorney to have?

The "best" Power of Attorney (POA) is usually a Durable POA (for finances) and a Medical POA (for healthcare), often combined as a Springing POA that activates upon incapacity, because it ensures trusted agents can manage your affairs (money, medical care) if you become unable to, preventing court-appointed guardianships. A Durable Financial POA is crucial for ongoing financial management during incapacity, while a Medical POA handles healthcare decisions, ensuring your wishes are followed. The key is tailoring it to your needs and choosing trustworthy agents, ideally with an attorney. 

Can a POA access bank accounts?

Yes, a Power of Attorney (POA) can grant an agent authority to access bank accounts for deposits, withdrawals, and bill payments, but banks might require specific forms or appearances due to fraud concerns, and the POA must be valid and follow state laws for the agent to act. The POA agent acts on behalf of the account holder (principal), but the authority ends when the principal dies, at which point the POA document becomes invalid. 

How often should I review my enduring power of attorney?

This is a costly, lengthy, stressful — and avoidable — process for your loved ones. This is why we recommend that if you have an existing power of attorney, that it be reviewed for accuracy every three to five years.

What are the six worst assets to inherit?

The 6 worst assets to inherit often involve complexity, ongoing costs, or legal headaches, with common examples including Timeshares, Traditional IRAs (due to taxes), Guns (complex laws), Collectibles (valuation/selling effort), Vacation Homes/Family Property (family disputes/costs), and Businesses Without a Plan (risk of collapse). These assets create financial burdens, legal issues, or family conflict, making them problematic despite their potential monetary value.
 

What are the dangers of POA?

Agents and conservators may make decisions that conflict with your values and preferences, leading to a loss of autonomy in critical matters such as healthcare, finances, and property management. Without proper checks and balances, this can leave you vulnerable to manipulation and undue influence.

Am I responsible for my parents' debt if I have power of attorney?

No, having Power of Attorney (POA) does not automatically make you personally responsible for your parents' debts; their debts belong to their estate, not you, unless you co-signed a loan, are a joint account holder, or breach your fiduciary duty. As a POA, you manage their finances using their money, but you should not use your own funds to pay their debts, and you must sign documents clearly indicating you are acting as an agent (e.g., "[Parent's Name], by [Your Name], Attorney-in-Fact") to avoid personal liability. 

Is it better to have a POA or joint bank account?

A Power of Attorney (POA) lets you authorize someone to act for you, maintaining your control and protecting assets, while a joint account gives the other person equal ownership and access, risking misuse and interfering with your estate plan. A POA creates a fiduciary duty for the agent (acting in your best interest), whereas a joint owner can legally use the money for themselves, making POAs generally safer and more flexible for financial management.
 

Why do you not tell the bank when someone dies?

You shouldn't always tell the bank immediately because it can freeze accounts, blocking access for paying bills or managing estate funds, and potentially triggering complex legal/tax issues before you're ready, but you also risk problems like overpayment penalties if you wait too long to tell Social Security or pension providers; instead, gather documents, add joint signers if possible, and get professional advice to plan the notification strategically. 

What not to do immediately after someone dies?

Immediately after someone dies, avoid making major financial decisions, distributing assets, canceling crucial services like utilities (until an attorney advises), or rushing significant funeral arrangements, as grief can cloud judgment; instead, focus on securing property, notifying close contacts, and seeking professional legal/financial advice to prevent costly mistakes and family conflict.
 

Should I put my name on my elderly parents bank account?

Opening a joint bank account with an elderly parent can help you streamline their finances and keep an eye on their account. Sharing a joint bank account may be a convenient option for paying a parent's bills and care costs if you're charged with managing their finances.

How do you make assets untouchable?

If you already have some legal experience, you might see how an asset protection trust is excellent for protecting assets from litigation and creditors. By removing ownership of the valuable assets in question away from you and your immediate family members, you make those assets practically untouchable…

What happens to senior citizens when they run out of money?

Old people with no money often rely on government programs like Social Security and Medicaid for basic income and healthcare, but can face difficult choices like continuing to work, downsizing, moving in with family, or potentially facing homelessness, hunger, and increased vulnerability, with the state stepping in as a last resort if they become wards for lack of capacity, often leading to public guardianship and potential institutionalization if they can't manage.