How to Discuss Power of Attorney with Elderly Parents

Many baby boomers are now facing a critical time in their lives. Not only do they have to face the health and well-being of their elderly parents, they are staring their own old age squarely in the face. Several weeks ago, the first "baby boomer baby" applied for a social security check! Many programs exist now to help keep the elderly living as independently as possible, however there are still difficult decisions to make in dealing with aging parents and with your own age issues.

Often, the most difficult tasks you face when discussing issues with your parents will revolve around money. The World War II generation almost universally played their finances close to their chests. In many cases the husbands were almost exclusively responsible for the household's financial information. Many elderly widows now have to learn how to balance a checkbook or where all the insurance and bank account information is. This isn't meant to be sexist, it is merely a reality of the situation that you may find yourself in. This is where the Power of Attorney can really help a situation.

With a Power of Attorney, you have the right to make certain decisions for your elderly parent(s). This can include simple day to day tasks such as paying bills, or even more important decisions around investment goals and even account closures. You are not obligated to do these things of course, but the option exists for you to lend a hand in case of need. This is the difference between guardianship and power of attorney. In a guardianship situation you become obligated to directly manage the situation for your parents. This can often lead to resentment and anger from both parties. Power of Attorney is more like a joint checking account.