Table of Contents

1. What is Power of Attorney?
2. How Do I Know if My Elderly Parent is Competent?
3. What is Required for Power of Attorney in California?
4. What to Do When Elderly Parent is Mentally Incompetent?
5. How Do I Take Over My Parents’ Finances?

What is Power of Attorney?

Power of attorney is a legal document that gives someone permission to make decisions on behalf of another person, often for medical or financial matters. The person granting the power of attorney is known as the grantor, and the person receiving the power of attorney is known as the agent or attorney-in-fact. In the context of elderly parents, the grantor is typically the parent, and the agent is typically the adult child.

How Do I Know if My Elderly Parent is Competent?

It is important to determine whether your elderly parent is mentally and physically fit to grant power of attorney. A mental health assessment by a healthcare professional is the best way to determine the mental competency of an elderly parent. In California, the person granting power of attorney must be of sound mind, meaning they must have the capacity to understand the nature of the document they are signing.

What is Required for Power of Attorney in California?

In California, power of attorney must be in writing and signed by the grantor in the presence of two witnesses who are both competent to testify in court. The witnesses must also sign the document. The power of attorney must specify the powers the agent is granted, and those powers must be in accordance with California law.

What to Do When Elderly Parent is Mentally Incompetent?

If your elderly parent is mentally incompetent and unable to grant power of attorney, the only other option is to have a court appoint a guardian to act on behalf of your parent. The court may appoint a guardian if it finds that an individual is unable to manage their own affairs. The court will typically appoint a family member as guardian if possible.

How Do I Take Over My Parents’ Finances?

If your elderly parent has granted you power of attorney, you will be able to take over their finances. You will need to provide documentation of the power of attorney to banks, investment firms, and other financial institutions. With the power of attorney in hand, you will be legally allowed to make decisions and access accounts on behalf of your parent.

In addition to the power of attorney, you may need to provide other documents such as a will, trust, or healthcare directive as well. It is important to be aware of all of your parent’s financial obligations, including any debts they may have. You will also need to familiarize yourself with your parent’s financial accounts and ensure that all bills are paid on time.