So--now I've got DPOA for Dad. What do I do next?

1. Cancel them
2. Read the LTC policy carefully, avoid mistakes.
3. If you are going to ignore the lawyer, you might regret it later.
4. Home Equity---again, read the terms carefully, avoid foreclosure. If the house is going to be sold, the loan will be paid off at the closing. Your lawyer will get a closeout figure and take care of that.
5. I hope your name is on there only as a signatory and not as a joint account. If it is joint, his bad credit rating could become your bad credit rating.

I wouldn't cancel his credit card as you may need to buy something for him, particularly since at this point his status is somewhat unclear. You may need the credit card for payment of bills or other things not provided in the care center. And given that your stepmother has cancer, you may also need the credit card if you have to pay bills for the house, even if she's handling them now. (I don't want to be maudlin, but cancer could change her own status and ability to maintain the house).

Paying the card down and off would be the right thing to do, if the funds exist to do so. To cancel, call the number on the credit card statement and tell the customer service representative that you want to cancel the card. If you're an authorized signatory, the issuer should be able to accept that direction.


Since you're joint on the checking account, you should be able to just deposit the insurance check in the account. But do you want to cash it, as in get it in dollars, or do you want to deposit it? I'd deposit it; you never know when the funds might be needed.

Having a trust checking account depends on how the trust is funded, whether it receives regular income, and who the joint or successor trustee is. Given that your father likely wouldn't be considered able to manage the funds, the successor trustee should have signatory authority to open the account (read the POA terms), unless succession occurs only on death.

If there are any funded assets producing income now, you will need a specific trust account for depositing them. We went through that. The bank will want a copy of the trust and ancillary documents (such as Certificate of Trust Existence and Authority). Banks are particular about segregating trust and nontrust funds.

You might find that there are overlaps between your authority as POA proxy and Successor Trustee. It wouldn't hurt to clarify these with your attorney, but if the documents are clearly drafted and funds segregated between trust and nontrust funds, this issue might not be problematic.

The home equity loan payments raise an interesting question. If the house was funded into the trust (i.e., retitled in the name of the trust), then payments probably should be made from a trust savings or checking account.

If the house was NOT retitled, and therefore not funded into the trust, the HELOC payments should be made from the checking account and not from trust funds.

If this doesn't make sense, just say so. Sometimes it's hard sorting out these issues mentally. I have to go over our own issues a few times to make sure I've gotten them straight!
The same issue may apply to property taxes, another reason to keep the credit card if the taxing authority takes credit card payments (some do, some don't).

Keep the credit card, but if you cannot find the actual card, report it lost so you can get a new card and ensure nobody else is using it.

My elder attorney says that trusts MUST have their own active financial account. For a trust to be taken seriously and the house is in the trust, you must show that the taxes paid on it and normal maintainance come out of the trust account. Please do not ignore your attorney. Sure it sounds like unnecessary paper work, but later you may be glad you did it. Additionally, you always need a good legal advocate! (He can coach you and BACK YOU UP while straightening all these things out!)

Adambravo- my experience is that they won't deal with you on the phone until they have a copy of the DPOA agreement - and even then some still won't. So first you initiate action by calling and explaining, they ask you to send the papers and they put a note in your file - after giving time for them to receive and process the DPOA call back. I'm surprise about the bank requiring your dads signature - given that is the purpose of DPOA. I didn't have any problems there - but I did eventually move my mothers checking/saving to the bank I use to make it easier overall. Social Security doesn't recognize DPOA/POA so you should call or go to a local office and get the forms they use that will allow SS to work with you regarding you dad. Tip: I always had extra copies of moms DPOA on me when I was doing her business - just made things easier as everyone wants their own copy.

When I was POA for my father, he had one credit card with about $40.00 on it. I paid the full bill and while under my father's login sent a message stating that he had paid off the card and wanted the account closed. I could have done it with the POA, but found it much easier to go this route. This way, I didn't have to worry about fraud on the card. He had a debit card that we could pay online payments if needed, so there was no need for the credit card. The less to worry about managing - the better.

I'd keep a credit card too. Just 1 to pay for things not covered and it will make it all easier to track for expenses. Stuff is going to come up......

Just remember, Power of Attorney ends at death. So being on the checking account is good, but think - is there anything else you may need to handle that you won't have access to, once the power of attorney is over?

We are in similar circumstances with my Dad. Mom had tried to involve him in their financial tasks, but he was unable to grasp the concepts involved and consequently my husband and I began helping Dad shortly after Mom passed 10 years ago. At first, he actually participated along with us. Later on he only asked to see balances, but with lessening frequency. Due to his advancing dementia, he is now totally oblivious to anything connected to deposits, bills, expenses, statements, balances, etc. I'm quite sure that it is just as well.
As a matter of fact, 6-7 years ago he started to take some of his coin collection to the bank to cash them in! When he actually closed out his accounts (forgetting about his SS direct deposit), we were lucky that he "fessed up" and were able to open new accounts with myself as joint owner. He then added me to his 1 remaining credit card account (authorized signatory only). And fortunately, we were able to contact an elder care attorney to obtain DPOA/MPOA before it became too late.
This attorney advised us, before it becomes a critical issue, to consider "spending down" remaining assets for things like funeral expenses, home repairs/appliance replacements, safety measures and anything else that might make Dad's home a safer or more comfortable environment. Done!
We also keep additional copies of DPOA/MPOA at the ready for un-anticipated circumstances when that info might be needed.
At this point, with Dad's advancing dementia and declining bank balance, he will be rapidly approaching Medicaid intervention should any additional health issues require care in addition to what we are able to provide and we are confident that there will be few complications, if any.
Although we try to keep a step ahead on medical and financial issues, we find that there are surprises at every turn. It is comforting to know that we are in good company and not alone in trying to keep Dad safe, healthy and as happy as he can be at this time in his life.

Cancel all accounts in his name and put all others in the trust's name. In order to get social security, you will need a form filled out by his doctor making you "Representative Payee" as they do not recognize any forms of powers of attorneys. The line of credit for the home is like another credit card. Pay it.

Acting as POA, Ann can use the money for your benefit even if Betty is a co-owner. If your POA is the "springing" type, Ann would only be able to access your accounts if you have been declared incompetent, thus activating the POA. If there is a significant amount of money involved, you should consult an attorney for a way to achieve what you want.