But what happens if your loved one is already showing signs of cognitive decline and there's no POA yet? In this post, we explain what a POA is, why it's important and what your options are if your loved one can no longer legally grant you one.

While we're covering the basics, this isn't intended to be legal advice. If you're dealing with a POA situation — or a lack of one — consider talking to an estate attorney.

What Is a Power of Attorney (POA)?

A power of attorney, or POA, is a legal document that grants one person decision-making and acting authority on behalf of another. The person who's granted that authority is called the agent or, sometimes, the attorney-in-fact — but they don't need to be an attorney.

You can use POA forms to grant a wide array of authority. For example, a financial POA might allow someone to handle bank accounts and investments and pay bills for another person. POAs can also grant authority related to medical choices and legal paperwork — a POA form might give someone the ability to manage the sale of a home, for example.

Common types of POAs include:

• General POAs, which grant broad powers for legal and financial matters
• Durable POAs, which remain valid even if someone becomes incapacitated
• Medical POAs, which let someone make decisions about medical treatments for someone else — also called health care proxies
• Limited POAs, which grant authority for a specific time period or task, such as selling a piece of property or managing finances while someone is out of the country

The Benefits of a POA for Older Adults and Their Loved Ones

Having a POA in place can provide peace of mind for older adults and their families by ensuring someone trusted is ready to step in and offer assistance when needed — without getting entangled in legal hurdles.

Some benefits you might experience with a POA include:

• Simplified decision-making. POAs pave the way for someone to make critical choices about legal, financial or health matters during emergencies or other times when delays would create poorer outcomes.
• Avoiding court involvement. A POA means you have the power to act on behalf of your loved one without demonstrating why you need this power and getting approval from a court.
• Ability to respect someone's wishes. Good POA processes typically involve communication about a person's desires while they're able to communicate them, making it easier for you to respect and follow through on their wishes later.
• Reduced family conflict. Naming a POA proactively and spelling out their authority in a legal document can mitigate potential disagreements among loved ones later.
• Easier care transition. A POA can make the move to memory care or another level of service easier by assisting with paperwork and managing finances.

Can You Become a POA If Your Loved One Has a Memory Diagnosis?

It depends, as someone has to be legally competent to sign a POA document. A memory diagnosis doesn't automatically mean someone doesn't have the cognitive ability to grant a POA. However, if the person's memory condition has reached a point where they aren't able to understand what a POA is and what powers they're giving, they wouldn't be able to sign the document legally.

A proactive approach tends to be best. If your loved one is in the early stages of dementia or has mild cognitive impairment, they may be able to sign a POA. You can seek a doctor's confirmation of capacity if you aren't sure or want documents to back up the legality of the POA.

What Are Some Other Options If You Can't Get a POA?

If your loved one is already experiencing significant cognitive impairment due to a memory diagnosis or other issue, they likely won't be able to legally authorize a POA. In that case, you may need to explore other options through the court system, which are typically guardianships or conservatorships.

Guardianships provide court-appointed individuals with legal authority to make health care and personal decisions for someone else. If you're appointed guardian, you may be able to make decisions about daily care and medical treatment, including moving into a memory care community.

Conservatorships focus on financial matters. If you're appointed conservator, you can manage income, assets and expenses if your loved one is unable to do so on their own. In some cases, guardians and conservators provide guidance and support rather than making the decisions fully.

When Possible, Have POA Discussions Early

Seeking alternatives through the court can be expensive and time-consuming. If you or someone you love is in the early stages of dementia or a similar condition, consider talking about POA options now while they're still an option.

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