Very good advice. We got my mom's done years ago while she was still completely alert and healthy. We don't need to wait until she is stroked out in the hospital for the thing to come in handy. She is now very confused about everything paper related. I am able to use the power of attorney for such mundane things as signing her taxes, making changes with utilities and her insurance policies, and so on, where it would just be very inconvenient, confusing, time consuming and painful for everyone involved getting her to sign that sort of stuff.
So it's not just for catastrophic complete guardianship. Once in place you can gradually use it as needed for anything that comes up.
At that time she also took me to the bank and put me on all her accounts as joint owner, so I have total ability to spend on her behalf. It makes it very easy for me to handle all her bills. I am not sure that's the best way to do it in every case. It is the easiest and most straightforward to care for her, but also allows me to access and blow it all on gambling or whatnot. If you have a child you trust 100% like my mom does me, and the other children don't mind, it works. Not only do my siblings not mind, they're happy to let me handle all this PITB stuff. But there is probably a more legally sound way of doing that with your cash accounts, some sort of trust or something. The way we do it though, I keep meticulous records that my siblings can examine at any time should they suspect me of foul play, but technically, I am not legally required to provide that. I AM legally required to provide that to her lawyer when I exercise the PoA to access some asset not jointly owned by me.
The other down side to doing it this way is the right of survivorship. When she dies the cash is mine. Technically it won't be in her estate to divide between all her children. But I wouldn't dream of screwing my siblings out of their inheritance. I'm the executor anyway, so upon her death I will throw it in the pot and distribute accordingly. But again, if you don't have that level of trust in your child, this isn't the best way to do it. And no one can predict what behaviors can ensue upon a death even in the most loving of families so complete aboveboard record keeping is a must.
Banks and accounts and state laws differ not to mention family dynamics so YMMV. Consult your own lawyers and accountants.
I have to warn you. When she passes you will have NO access to the account. My mother did this exact same thing, EVEN checking with the bank, telling them "if something happens to me I need my son to be able to use the funds" which they claimed was ok. On top of this she did a trust naming me executor. The bank was a large bank in the Midwest.
The moment she passed, needed money to do all the things associated with burial, etc. and at that point the banks compliance officer said "no way". It was a terrible time, and we went back and forth on this. A joint account, when someone dies is no longer available to the other apparently.
It's painful to recall, though I do recall clearly that the first person I spoke with at the bank assured me it all would work as we agreed, but shortly after she said the compliance officer stopped it. She more than hinted this woman was a terrible person, that was retiring soon and everyone at the branch was going to celebrate when that happened.
In the end, unexplicably, I had to set up a bank account (I was at her home in Florida), get an EIN number, and fill out a lot of stuff, and this was weeks afterwards, and they finally cut a check for the balance in the account and sent it via DHL. Honest to god, I was needing that for her memorial, and bills, etc. and one morning found the DHL envelope on my (mothers houses) doorstep. Just laying there on the mat.
It was a nightmare. And no amount of "but we checked with you for exactly this situation, and were advised by X at the time that this was workable"
The EIN number was as I recall to do with the trust, and though I couldn't write checks on the joint account, or withdraw or even put in money into it, again they could close it and send a check for balance.
Sorry I don't recall it all, but I felt I had to warn you (and anyone else) that you have to check further, as exactly when something happens, they can and do screw you.
