This question comes up often when an aging parent adds an adult child to a bank account so that adult child has access to pay bills on the parent’s behalf. Many simply stop the estate planning process here thinking that since they can pay the bills, they have set up all the protections they need. This is a huge mistake because a person’s financial affairs extend way beyond simple bill payment.
A durable power of attorney permits the adult child to sign legal documents on the parent’s behalf to take other financial steps as necessary. For instance, the parent may need to access other accounts such as retirement savings or annuities. Having a durable power of attorney allows the adult child to alter any investments or to withdraw funds as needed from the annuities or the cash value of the life insurance policies on behalf of the parent.
To learn more about creating a durable power of attorney that includes all the functions you may need to adequately care for a loved one’s financial affairs, please call 443-470-3599 to schedule an appointment.
