Power of Attorney forms are legal documents that allow someone you trust to manage your medical or financial affairs if you cannot do so. The forms specify what actions your agent can take on your behalf and can only be legally binding if they follow your state’s requirements.
Signing Requirements
Generally, this document must be signed in the presence of witnesses and notarized. However, even if your state does not require this, it is best practice to do so. Check your state signing requirements here.
POA Forms – By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
POA Forms – By Type
A form that provides additional clauses, and details specific areas you can grant power over in the event you can’t care for yourself (for example, if you had a stroke or fell into a coma).
Durable (DPOA)
A general form that allows you to give general or specific powers to an agent to make financial decisions for you, such as operating a business, buying or selling a property, accessing accounts, and handling investments.
Financial
A POA that allows a designated agent to make financial decisions on behalf of the document’s principal.
General
A form which allows you to give limited powers to an agent for a specific task (such as a single real estate transaction), and typically ends when the task has been completed.
Limited
A type of durable power of attorney that specifically allows an agent to make health care decisions for you if you become incapacitated. These decisions can include what treatment you receive, whether your organs are donated, and if you are kept alive on life support.
Medical (MPOA)
A form that allows you to delegate power of authority to a friend or family member while you're away for training, stationed at a base far from home, or deployed overseas.
Military
Enables individuals or business entities to designate a representative, typically an accountant or tax attorney, to professionally prepare and submit their federal tax returns.
IRS (Form 2848)
Terminating a Power of Attorney
Revocation of Power of Attorney
Cancels or nullifies a previously granted Power of Attorney, terminating the authority of the previously designated agent to act on the principal's behalf.
- POA Forms - By State
- POA Forms - By Type
- Terminating a Power of Attorney
- What Is Power of Attorney?
- When to Use a Power of Attorney
- How to Get Power of Attorney
- How to Sign as Power of Attorney
- State Signing Requirements
- How to Choose an Agent
- How to Write a Power of Attorney Form
- How to Remove a Power of Attorney
- Frequently Asked Questions
What Is Power of Attorney?
A Power of Attorney (POA) is a legal document that gives someone else the authority to manage a person’s affairs. Someone serving as a Power of Attorney can act for someone else in specific financial, health-related, or personal matters.
With a POA, an individual (the “principal“) can choose another person (the “agent” or “attorney-in-fact“) to make confident decisions on their behalf. When completing the paperwork, the Principal will provide the essential details about the agent and what actions they may take on behalf of the principal.
If you become incapacitated without designating an agent, a loved one or family member may need legal guardianship from a court to help with your affairs. [1]
Example:
For instance, an elderly woman named Margaret wants to ensure her financial affairs are managed if she becomes incapacitated. She appoints her daughter, Emily, as her attorney-in-fact through a POA, giving Emily the authority to manage bank accounts, pay bills, and make investment decisions on her behalf.
Statutory Definition
Section 102(7) (page 7) defines as:
‘a writing or other record that grants authority to an agent to act in the place of the principal, whether or not the term power of attorney is used.”
Uniform Power of Attorney Act
Commonly known as the UPOAA was enacted in 2006. The UPOAA was created by the Uniform Law Commission (ULC) in response to the need for a uniform and standardized set of laws governing the creation and scope of a power of attorney.
States That Have Enacted UPOAA
State | Year Enacted | Bill |
---|---|---|
Alabama | 2011 | SB 53 |
Arkansas | 2011 | SB 887 |
Colorado | 2009 | HB 09-1198 |
Connecticut | 2016 | Public Act No. 15-240 |
Georgia | 2018 | House Bill 897 |
When to Use a Power of Attorney
Real-World Examples of When to Use
- Durable POA for Business: A business owner can authorize a trusted employee to sign contracts or conduct financial transactions on behalf of the company when the employee is out of town or unavailable.
- Durable POA for Finances and Healthcare: An elderly person can delegate their finances or medical decisions to a family member or friend if they cannot do so themselves.
- Military POA: A military service member can appoint a representative to a spouse or trusted family member to handle their affairs while deployed overseas.
- Limited POA for Child Care: A parent can authorize medical care for a child to a babysitter or nanny in an emergency while the child is in their care.
- Limited POA for Real Estate: A buyer can delegate closing documents to a trusted personto execute closing documents if they cannot attend the closing.
How to Get Power of Attorney
- Assess Your Needs as Principal
- Choose an Agent (or Attorney-in-Fact)
- Draft the Document
- Review State Laws
- Sign, Notarize, and Distribute Copies of the Document
Step 1 – Assess Your Needs as Principal
Deciding on the type of power of attorney depends on your individual needs and circumstances. Here’s how you might determine the right type:
- Assess your needs – Understand why you need a POA and what areas of your life it will cover (financial, medical, etc.).
- Consider the duration – Determine whether you must last indefinitely or only for a specific period.
- Check state laws – Your state’s laws might influence the type of POA you choose.
If you want someone to manage your financial affairs even if you become mentally incapacitated, you’ll want to use a durable power of attorney. It’s useful for long-term planning.
But if you need to appoint someone to make medical decisions on your behalf, if you’re unable to do so, you’ll want to use a medical one.
➔ Keep Learning: Let’s explore what exactly your appointed agent can do and what are the limitations!
Step 2 – Choose an Agent (or Attorney-in-Fact)
Selecting an agent for your power of attorney is a pivotal decision. The foremost consideration should be trustworthiness; your agent must be someone you trust implicitly.
Alongside trust, capability is crucial. As a principal, you want to choose someone capable of handling the responsibilities of managing your affairs.
Ensuring the person is willing to take on your agent’s role is also essential. Their willingness to uphold your wishes, especially during challenging times, is necessary.
Example:
Jane is considering whom to appoint as her attorney-in-fact. She ultimately chooses her cousin, who has a strong financial background and whom she trusts implicitly, over her close friend, who lacks financial expertise. Jane also discusses her preferences and values with her cousin to ensure that her wishes are carried out as intended.
➔ Keep Learning: How to Choose The Right Agent for Your POA
Step 3 – Draft the Document
You’ll want to draft the document once you decide on the type you need. Use an online form or hire a lawyer to draft the document outlining the powers granted to your agent.
Be clear and specific about the powers you grant and understand how you can revoke the power of attorney if needed. If it’s not durable, specify when it expires.
Also, designate alternate agents in case your first choice cannot serve.
Highly Recommended: Use a fillable POA template specific to the state, which typically includes sections for identifying information, powers granted, and signatures of the grantor, agent, and witnesses.
Step 4 – Review State Laws
Reviewing your state’s specific laws to ensure the document’s validity is imperative. Each state may have different requirements concerning notarization, witnessing, and the language used in the document.
This step ensures that the power of attorney is legally binding and will be honored by courts and institutions, safeguarding the principal’s interests and intentions as outlined in the document.
Step 5 – Sign, Notarize, and Distribute Copies of the Document
Once the document is completed, it is recommended, and sometimes mandatory, to have the form(s) signed in the presence of Witness(es), a notary public, or both. Check the signing laws in your state to learn what is required for your document to be fully executed and legally valid.
The witnessing process provides a level of assurance against fraud, affirming that it’s indeed you signing the document. Notarization further legitimizes it, as a notary public verifies your identity and willingness to sign.
After signing and notarizing the document, distribute copies to your agent, family members, and others who may need to know about the arrangement. All parties should keep copies of the completed form, and the original should be stored somewhere safe.
➔ Keep Learning: How to Sign as POA
How to Sign as Power of Attorney
Once a Power of Attorney is effective, the agent can sign as power of attorney and make decisions on the principal’s behalf.
To have an agent use a general Financial POA, the principal must contact the third party (such as a bank) in advance and show the original signed form (or a certified copy) and the agent’s and principal’s IDs.
Once the agent has been confirmed or added to the account, they can sign for transactions as follows:
[Principal’s name]
by [Agent’s name]
Power of attorney
Some third parties may initially refuse the form if they’re worried about possible forgery. To proceed, the agent may need to sign an affidavit or have their lawyer contact the third party.
Suppose the principal is incapacitated and the POA is durable. In that case, the agent may need to provide additional documents from healthcare professionals that confirm the principal’s capacity before the agent can use the POA and sign on the principal’s behalf.
State Signing Requirements
STATE | DURABLE | GENERAL | MEDICAL | MINOR (CHILD) | REAL ESTATE | TAX | VEHICLE |
---|---|---|---|---|---|---|---|
Alabama | Notary Public | Notary Public | Two Witnesses | Notary Public | Notary Public | Principal Only | Notary Public |
Alaska | Notary Public | Notary Public | Notary Public | Notary Public or Two Witnesses | Notary Public | Principal Only | Notary Public |
Arizona | Notary Public and One Witness | Notary Public and One Witness | Notary Public or One Witness | Notary Public and One Witness | Notary Public and One Witness | Principal Only | Notary Public or MVD Agent |
Arkansas | Notary Public | Notary Public | Notary Public and Two Witnesses | Notary Public | Notary Public | Principal Only | Principal Only |
California | Notary Public or Two Witnesses | Notary Public or Two Witnesses | Notary Public or Two Witnesses | Notary Public or Two Witnesses | Notary Public or Two Witnesses | Principal Only | Principal Only |
How to Choose an Agent
Choosing the right agent with a Power of Attorney is the best way to avoid risk. Remember that you can select multiple agents for different tasks and assign responsibilities based on the agents’ strengths and character.
Many people choose a spouse as their agent. This can create problems for durable and medical powers of attorney if the spouse is similar to the principal, as they may also face age-related health challenges.
Naming adult children is a standard option because they will be younger, but this can create conflict when one sibling is given power of attorney, and another feels they’ve been mistreated. You should never name one of your children as your agent because of fairness if you lack trust in their ability to handle your affairs.
There are no specific qualifications, but choosing someone trustworthy and capable of serving as your agent is essential. Take these points into account when making your choice:
- Needs: The tasks you want to be entrusted to your agent must also be carefully considered. Would you require someone to take charge of your finances, be responsible for your healthcare decisions, or handle both?
- Reliability: This person will act with the same legal authority you would have to manage your financial and medical data, so it’s paramount that you select someone you trust.
- Availability: Make sure they’ll be able to help you when you need it most, so you should avoid those who are often out of town or have other obligations that might prevent them from stepping in for you.
How to Write a Power of Attorney Form
Details are critical in a power of attorney form. Your appointed agent will have the power to make serious financial decisions on your behalf. Clear intentions, limitations, and terms for termination can protect you from legal issues down the line.
This is generally the structure of a power of attorney; however, the structure and necessary provisions vary from state to state.
Step 1 – Designation of Agent
Choose who you want to name as the power of attorney’s agent or attorney-in-fact. This person will handle sensitive financial matters on your behalf, so choose carefully. Select someone who understands the tasks they must manage and can be trusted to act in your best interests. Enter the name and address of your agent and co-agent, if applicable.
Consider adding a successor agent who can handle your financial matters if your primary agent is unable to do so. You may also add a secondary successor.
Appropriate agents may include:
- A spouse
- A close relative
- A close friend
- A professional with an honest reputation
When determining the right agent, ask yourself whether you trust the person to handle your financial matters with discretion. You should choose someone who will understand your perspective and reliably follow your wishes.
![An example of the Designation of Agent section in our POA template.](https://legaltemplates.net/wp-content/uploads/POA-Designation-of-Agent.png)
Step 2 – Grant Of General Authority
On the document, initial next to the authority or powers you want to grant your agent. This may include granting authority over any of the following:
- Real property
- Tangible personal property
- Stocks and bonds
- Commodities and options
- Accounts with banks or other financial institutions
- Operation of entity or business
- Insurance and annuities
- Estates, trusts, and other beneficiary interests
- Claims and litigation
- Personal and family maintenance
- Benefits from governmental programs or civil or military service
- Retirement Plans
- Taxes
If you wish to allow your attorney-in-fact to handle all the above matters, simply initial the last line in the section labeled “(N) All Preceding Subjects.” By initialing these general authorities, the principal grants permission for the agent to act on their behalf in related matters.
![An example of the Grant of General Authority section in our power of attorney template.](https://legaltemplates.net/wp-content/uploads/POA-Grant-of-General-Authority.png)
Step 3 – Grant of Specific Authority (Optional)
While general authority may permit an agent to manage many aspects of your financial life, you must grant special authority for certain acts. These powers can reduce your property or alter its distribution after your death. For the principal to ensure they are protected in such cases, they must specifically grant the authority to:
- Create, amend, revoke, or terminate an inter vivos trust
- Make a gift
- Create or change rights of survivorship
- Create or change a beneficiary designation
- Authorize another to exercise power under the POA
- Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including under a retirement plan
- Exercise fiduciary powers the principal has the authority to delegate
Before you initial one of these items, consider discussing the matter with an estate attorney or financial advisor. They can help you understand the potential risks associated with assigning these powers to an agent.
Step 4 – Limitation on Agent’s Authority
As an added level of protection, a POA form may include a clause limiting the agent’s ability to use the granted authority to benefit themselves or others associated with them. This prevents an unrelated agent from using their access and authority over your financial matters to benefit their family members or others to whom they owe an obligation of support.
Exceptions to this limitation include when the agent is the principal’s spouse, ancestor, or descendant. If your agent is permitted to use property to benefit themselves or others, note the details in the special instructions. Include as much detail as possible concerning the extent and limitations of the agent’s power in this situation.
![An example of the Limitation of Agent's Authority in our template.](https://legaltemplates.net/wp-content/uploads/POA-Limitation-of-Agents-Authority.png)
Step 5 – Special Instructions (Optional)
Special instructions are optional. This is where you indicate any exceptions, limitations, or clarifications to the powers granted above. A power of attorney form is a legally binding agreement that can significantly affect financial well-being. It is in your best interest to include as much detail as possible.
Examples of special instructions include:
- How you want certain matters handled
- Financial limitations on gifts, payments, and other financial transactions
- Instructions on how to operate a business
- Situations that require communication with the principal before acting
- Additional limitations on power and authority
- Time limits or conditions that automatically terminate the agreement
- Conditions that trigger a transfer of the POA to a successor agent or secondary successor agent
- Adding additional co-agents or successor co-agents.
- Instructions for agent compensation.
![An example of where to include special instructions in our POA template.](https://legaltemplates.net/wp-content/uploads/POA-Special-Instructions.png)
Step 6 – Effective Date
Select the date you want your agent to receive power of attorney and begin handling your financial affairs. Choose from the following options:
- Effective immediately
- Effective upon the principal’s incapacity or disability
- Effective upon a specific event or contingency
If you choose a specific event to trigger the power of attorney, such as a military deployment, clearly outline the conditions under which the agreement becomes effective.
Under a conditional or springing POA, your agent must prove the event has occurred so they can take over financial responsibilities. They could have trouble exercising their authority without sufficient detail or documentation to confirm the contingency. For instance, if the power of attorney activates because the principal leaves on deployment, the agent may need copies of the deployment orders.
Springing POAs are not allowed in all states. Check your specific state requirements regarding the types of POAs that are permitted.
![An example of the Effective Date section in our downloadable template.](https://legaltemplates.net/wp-content/uploads/POA-Effective-Date.png)
Proving Incapacity
If your POA becomes effective upon the principal’s incapacity, the agent will need evidence to establish that the principal is incapable of making their own decisions. This evidence typically comes as a doctor’s declaration and may require a court order.
Types of incapacity that could trigger a conditional POA include:
- Alzheimer’s disease or dementia
- Traumatic brain injury
- Loss of vision or hearing
- Severe cognitive impairment or learning disability
- Severe psychological or behavioral disorders
This is not a comprehensive list; every state has different definitions for incapacity. Check your local laws before establishing a POA to understand how the scope of incapacity can affect your agreement.
Step 7 – Termination
When filling out the termination section, you will need to choose between two options:
- Durable Power of Attorney: This option means that the power of attorney will not be affected by your subsequent disability or incapacity, or lapse of time.
- Regular Power of Attorney: This option means that the power of attorney will terminate if you become disabled or incapacitated.
![An example of the Termination section in our template.](https://legaltemplates.net/wp-content/uploads/POA-Termination.png)
Step 8 – Nomination of Guardian (Recommended)
When you complete a power of attorney form as part of an estate plan, you can nominate a guardian for your person and your estate. One person can serve as a guardian for both, or you may recommend separate guardians for each purpose. The appropriate court, usually a probate court, must approve the guardian should you become incapable of caring for yourself. If appointed, the guardian(s) will have the authority to make all decisions about your person and/or property.
![An example of the Nomination of Guardian section in our template.](https://legaltemplates.net/wp-content/uploads/POA-Nomination-of-Guardian.png)
Difference Between Guardian and Power of Attorney
While a power of attorney grants an agent specific powers, those powers are typically limited to the financial and legal authority granted in the POA. The agent may act on your wishes, but you are still the primary decision-maker.
A legally appointed guardian, on the other hand, makes decisions for you, typically because you cannot handle these matters on your own. Your guardian and POA agent may work together to manage your affairs, depending on the circumstances.
If your POA is non-durable, the agent’s power will end when you become incapacitated, and an appointed guardian can take up all responsibilities. Due to the serious nature of guardianship, it is wise to consult with a probate attorney or estate planner when determining who to nominate as a guardian.
Step 9 – Reliance on This Power of Attorney
Include a sentence or clause declaring the validity of the POA form unless the person relying upon it knows that it is terminated or invalid. This section ensures that the POA will be used in good faith by the agent and others who may require the form to conduct business on behalf of the principal.
This clause formalizes the document’s intent and grants the attorney-in-fact permission to rely on the power of attorney if the agreement has not been terminated, suspended, or revoked.
![An example of the Reliance On This Power of Attorney section in our template.](https://legaltemplates.net/wp-content/uploads/POA-Reliance-On-This-Power-of-Attorney.png)
Step 10 – Signature and Acknowledgement
Once the principal signs and dates the POA form, it becomes a legally binding document. Most states require a notary or witnesses to be present for this step, so review your state laws for notarization requirements before signing.
You must sign the document in the presence of the notary or witnesses consistent with your local laws. If you fail to sign before the appropriate witnesses, the document is deemed invalid, and you must complete a new POA form.
![An example of where to sign in our POA template.](https://legaltemplates.net/wp-content/uploads/POA-Signature-and-Acknowledgment.png)
Representative Signature
If you cannot physically sign the power of attorney form as the principal on your own, you may designate a legal representative to do so on your behalf.
If your representative signs, they must enter the following information under the signature and acknowledgment section:
- Representative’s name
- Representative’s signature
- Name of the principal on whose behalf they are signing
- Principal’s address
- Principal’s telephone number
Step 11 – Notary Acknowledgement
Your POA form may include a separate section for the notary public’s information. The notary must typically enter the following:
- State or commonwealth
- County
- Date of acknowledgment
- Principal’s name
- Signature
- Commission expiration date
- Notary seal, if necessary
![An example of the Notary Public section in our power of attorney template.](https://legaltemplates.net/wp-content/uploads/POA-Notary-Public.png)
Depending on your state’s requirements, you may include a separate notary or witness acknowledgment form. The notary or witnesses must verify your identity during the signing. They may ask for identification in the form of a state ID, driver’s license, or passport.
Your POA form must be signed and notarized in accordance with the laws of the state where your representative will conduct business. States may allow you to transfer power of attorney if the POA meets their signing requirements, but not always.
In addition, some financial institutions, businesses, and other organizations will not accept out-of-state POAs.
How to Remove a Power of Attorney
Ending a power of attorney is just as important as creating one. There may be various reasons someone would want to end their power of attorney, including the agent’s incapacity, the agent’s misconduct, or simply because the principal no longer needs assistance.
If you have decided to terminate, there are a few steps you need to follow:
Step 1: Revocation Notice
The first step is to download a Revocation template and provide a written revocation notice to your agent, indicating that you are revoking their power of attorney. The notice should include your name, date of birth, and the date of the previous power of attorney. It should also specify the reasons why you are revoking.
Example:
After granting a POA to her nephew to manage her financial affairs, Linda notices that he has been making decisions that don’t align with her wishes. She decides to revoke the POA by notifying him in writing and informing her bank and other relevant institutions, ensuring that he no longer has the authority to act on her behalf.
Step 2: Notify Third Parties
Once you have informed your agent, you should notify all third parties relying on the power of attorney, such as banks or financial institutions. You should provide them with a copy of the revocation notice and inform them that the power of attorney is no longer valid.
Step 3: File the Revocation Notice
It is advisable to file the revocation notice with the court where the POA was originally filed. This will ensure a record of the revocation and prevent anyone from challenging the validity of the revocation later on.
Step 4: Create a New Power of Attorney
You can create a new POA with a different agent if you still need assistance. Carefully choose your new agent and discuss your expectations and limitations with them.
➔ Learn Further: Delve into who can override a power of attorney!
Frequently Asked Questions
Does a Power of Attorney Need to be Notarized?
YES, in most cases, a Power of Attorney must be notarized. In many states, this document needs to be acknowledged by a notary public to be legally binding.
Check your state laws to determine if your form needs to be notarized.
Does Power of Attorney End at Death?
YES, Power of Attorney ends at death. At this point, a Last Will and Testament becomes effective.
Does Power of Attorney Expire?
YES, Power of Attorney expires. When completing the form, you can set the date when it expires. If an expiration date is not written on the document, the document expires when either:
- the principal dies
- the principal becomes incapacitated (unless it’s durable)
- the agent dies or is declared legally incompetent, and no alternate agent is named in the document.
Can a Power of Attorney Be Changed without Consent?
NO, a Power of Attorney cannot be changed without the principal’s consent. The principal must agree to change the powers given to the agent and then create a new form.
Can a Power of Attorney Change a Will?
NO, a Power of Attorney cannot change a Will. A POA gives an agent authority to make legal decisions on behalf of the principal that is in their best interest, but it doesn’t override a last will.
How do you get power of attorney for a parent?
To get a power of attorney for your parent, you must first ask them to name you as their agent on a POA form and take the necessary steps to ensure that third parties recognize the document.
If your parent is incapacitated and cannot make rational decisions, you can consider pursuing adult guardianship or conservatorship.
What Powers and Liabilities Does an Agent Have?
A Power of Attorney allows you to choose someone you trust to manage your affairs and ensure they’re handled in your best interest.
Powers an agent could have include:
General Powers: To handle a wide range of legal, financial, and business matters on behalf of the principal. This can include managing financial accounts, conducting real estate transactions, filing tax returns, and making healthcare decisions.
Limited or Special Powers: To grant specific powers, such as selling a particular property, handling a business transaction, or representing them in a specific legal proceeding.
Financial Powers: To enable them to manage the principal’s financial affairs like banking transactions, bill payments, investment decisions, and managing assets.
Healthcare Powers: To make healthcare decisions about medical treatments, surgeries, and end-of-life care on behalf of the principal if they become incapacitated or unable to make medical choices themselves.
Real Estate Powers: To allow the attorney-in-fact to buy, sell, lease, mortgage, or manage real property on behalf of the principal.
As a power of attorney, you have a fiduciary duty to act in the best interests of the person who granted you the power. If you breach this duty, you could be held liable for any damages that result from your actions.
What Does a Power of Attorney NOT Allow an Agent to Do?
There are several things an agent can’t do when given power of attorney, including:
- Make decisions for the principal if they die
- Transfer a power of attorney to someone else
- Vote on behalf of the principal in an election
- Change or override a last will
In addition, an agent with medical power of attorney may be able to make health care decisions for a principal when they’re incapacitated. Still, they can’t go against their end-of-life treatment wishes described in their living will.
How Do I Submit a Power of Attorney to the IRS?
To submit POA documents to the IRS, you must complete Form 2848, Power of Attorney, and Declaration of Representative. This form allows you to authorize an individual to represent you before the IRS. You can submit the form electronically or by mail. Make sure to follow the instructions carefully to ensure that your submission is processed correctly.
What’s the Difference Between Power of Attorney and Guardianship?
The critical difference between power of attorney and guardianship is that a court can only appoint a guardian, while the individual can create a power of attorney. This means that setting up a power of attorney is quicker and more private than guardianship, which is a lengthy and less personal legal process.
If an adult becomes incapable of making decisions and hasn’t created a POA, a loved one needs legal guardianship to manage their affairs for them. It’s important to talk to elderly parents about the risks of not having one, the legal costs of getting guardianship, and the stress involved in planning for the future and ensuring their affairs are managed properly.