Navigate Becoming Power of Attorney for an Aging Parent with Confidence

Taking on the role of power of attorney (POA) agent for a parent can feel overwhelming, because it is. It means stepping into their shoes, often during times of vulnerability, and making important decisions about their finances, healthcare, or both. But while it comes with legal authority, it also comes with emotional weight and familial complexity.

Let’s explore what this role actually involves, how to handle it with care, and how American Heritage Credit Union and our Investment & Retirement Center (IRC)* can help you prepare for what’s ahead.

What is Power of Attorney, Really?

A power of attorney is a legal document that allows one person (the “principal”) to authorize another (the “agent” or “attorney-in-fact”) to make decisions on their behalf. The principal must be of sound mind and able to make decisions in the best interests of the agent. These decisions can range from managing bank accounts and paying bills to handling retirement accounts, filing taxes, or overseeing investments.

Common individuals who become power of attorney include:

• Adult children, particularly ones who are close to the parents and live nearby
• Spouses, siblings, or close friends
• If no family member or close relative is available, attorneys or financial advisors may step in

There are different types of POA, including:

• Durable POA, which stays in effect if your parent becomes incapacitated
• Limited POA, used for specific transactions
• Healthcare POA, which covers medical decisions

Make sure you review the document closely and know exactly what decisions you're authorized to make.

Power of Attorney vs. Guardianship vs. Conservatorship

While power of attorney is similar to other arrangements such as guardianship and conservatorship, there are some significant differences. All three deal with managing affairs for a parent or loved one, but each carry some differences in how they are executed.

• Power of attorney is used when the agent is still of sound mind and does not require court involvement. The principal can also revoke their agent at any time, so long as they are mentally competent.
• Guardianship is appointed by the court when no power of attorney has been selected. This arrangement is employed when the individual can no longer make personal or medical care decisions and requires the support of a guardian for these affairs. Guardianship can only be revoked by the court.
• Conservatorship is similar to guardianship, but strictly refers to financial matters. Court involvement is required, and conservatorship can only be revoked by the court.

What Financial Access Really Means

Being a POA gives you access but also accountability. You may be able to:

• Pay bills using your parent's funds
• Manage savings, IRAs, financial investing, or annuities
• Work with financial institutions or tax preparers
• Make investment decisions on their behalf

If your parent is a member of American Heritage, you’ll need to provide proper documentation to access their accounts, even if you’re legally authorized. Our representatives are here to guide you every step of the way. If you need some assistance in getting the process started, contact us at 215.969.0777.

Respect Legal Boundaries and Act Ethically

As agent, you're legally obligated to:

• Act in your parent's best interest
• Keep accurate records of all transactions
• Avoid mixing finances or using their funds for personal use
• Maintain open communication with your parent (if possible) and other family members

There’s a lot that comes with being a parent’s POA agent. You’re not just helping with money; you’re upholding your parent’s values and wishes.

Navigate Family Dynamics with Care

There are bound to be difficult conversations that arise when becoming your parent’s agent. These may cover topics such as which family member would be the best agent, when to present your parent with POA, or navigating your parent’s loss of independence. Be prepared for these conversations and think about the best way to handle them with siblings or close relatives.

Tensions can arise when one sibling is named your parent's agent. Others may question your choices, or emotions may run high during health crises. The best approach?

• Be transparent about decisions
• Share documentation when appropriate
• Involve siblings or other loved ones in big conversations

Open and transparent communication is vital. It’s not just about the finances. It’s about trust, dignity, and family unity.

Get Support from Financial Professionals

Unless you’re in the financial services industry, you may have some questions around your parent’s assets. Being your parent’s agent doesn’t mean you have to become a financial expert overnight. American Heritage’s Investment & Retirement Center (IRC)* can help you:

• Review and manage IRAs and annuities
• Review financial investing options and benefits
• Plan for long-term care or assisted living costs
• Transfer or roll over retirement accounts
• Explore legacy planning options to ensure your parent's wishes are honored
• Attend educational workshops to build your confidence

You can set up a complimentary consultation with an IRC* representative to discuss your parent’s situation and your responsibilities.

You're Not Alone, and You Shouldn't Be

Taking care of a parent’s financial life is an act of deep love, but it can also take a toll. You don’t have to navigate this alone.

Talk to your family, talk to your parent’s lawyer, and talk to us. American Heritage and the IRC team are here to provide the financial insight, personal support, and planning tools you need, whether you’re starting this journey or are already deep in the details.

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed  affiliates. American Heritage Credit Union and The American Heritage Investment & Retirement Center are not registered as a broker-dealer or investment advisor. Registered representative of LPL offer products and services using American Heritage Investment & Retirement Center, and may also be employees of American Heritage Credit Union. These products and services are being offered through LPL or its affiliates, which are  separate entities from, and not affiliates of, American Heritage Credit Union or American Heritage Investment & Retirement Center. Securities and insurance offered through LPL or its affiliates are: 

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