How powerful is my DPOA?

Question

How powerful is my DPOA?

Follow

Share

I have DPOA for my mother. Can I put myself on her bank account? Her dementia makes her believe if she adds me that I'm going to clean out her account. Of course, with DPOA I could already do that, but that's not going to happen. I'm more worried about getting to her money to bury her and pay off her final bills once she passes. What happens to the money in her bank account if I can't get added?

Power of Attorney (POA)

This question has been closed for answers. Ask a New Question.

18 Answers

Most
Helpful Newest
First Oldest
First

The DPOA Stops the day your mom passes away. So does your access to her accounts if your not on them or the Executor of her will. In my case all her accounts were included in her trust and I was the surrogate trustee. Had I not been I wouldn't have had access to her funds for final payments of bills. Also, she had a Safe Deposit box (which was outside of the trust) as her DPOA I had access UNTIL she passed away. If your mom has a safe deposit box, I highly suggest removing the contents befor she passes away.

Helpful Answer (4)

Report

Kashi60 - the reason the bank asked for a doctors letter is that a DPOA - Durable power of attorney takes effect when the person becomes incompetent - so the bank needed to know that in order for the DPOA to be effective she had to be declared "incompetent" by a dr. The DPOA however, must be signed by the person when they are still competent; the attorney and/or notary will ask the person questions to make sure they are in fact competent. A POA or Power of Attorney is used while the person is competent. If you would have presented the bank with a POA instead of a DPOA they would NOT have needed a doctor's note. Both the POA and DPOA end as soon as the person dies. I had both for my mom and needed to use them both. Also a POA does not have to be for an elder, it can be used on a temp basis for designating someone to sell your home in another state, or to do a business transaction in your behalf when you can't be there, etc.. It would state that it was only for that particular transaction and have an ending date. I would suggest everyone have a POA & DPOA along with a health care surrogate form, DNR (if the person wishes that) and a living will. Makes things a whole lot easier.

Helpful Answer (4)

Report

You need to review the DPOA with the attorney that prepared it. There is, in some states, check with the state in which it (DPOA) was written, a difference in POA, AIF, and DPOA. The limitations of the document 'should be' clearly defined, though we laymen, especially me, are sometimes not so well versed.

That would be a good starting point. I know that when the situation was dropped in my lap, thanks brothers & sister, it was a mess. Still I am trying to get a handle on it and it's not an easy task. Guess that's what I get for being the eldest.

Let us know what you find out, it may help others here. God Bless & good luck.

Helpful Answer (3)

Report

With your DPOA, go to the bank and simply add your name and signature. Let them know you will be handling all financial affairs in the future. Period. Your DPOA acts as if you were your mother. You need to set up a trust to avoid probate because if you don't, that's where her money will go to pay court costs. Set aside money now for burial, funeral costs if that is what she wants, and just do the best for her in the remaining time. She trusted you, that's why she made you her power of attorney. Durable means it is really legally binding and will stand up in any situation.

Helpful Answer (3)

Report

I have DPOA of my mother's account but someday when she passes I cannot get into her account unless my name is on the account which it is not. My sister is on the account. My mom is 95 and just made all the arrangements for her funeral and prepaid for it so her children don't have to do it.

Helpful Answer (2)

Report

The best advice that anyone could offer is that you talk with an elder law or estate planning attorney in your state. The laws governing Durable Power of Attorney vary in each state, and you and your mother will benefit from knowing the rules that apply where you live.

You mentioned your concern about having access to your mother’s funds when she passes. That is an important concern, because the power in a Power of Attorney ends when the person dies.

In my home state, Massachusetts, there are laws allowing jointly owned bank accounts to be distributed to the other joint owner(s) upon death. Other Massachusetts laws allow you to designate beneficiaries on retirement accounts, stock brokerage accounts, insurance policies, or accounts with financial institutions. The beneficiaries listed on the records kept by the insurance company or financial institution determine who gets those assets upon your death.

People in Massachusetts can avoid probate of assets by using bank forms to designate an account ITF (In Trust for), TOD (Transfer on Death) or POD (Payable on Death). Massachusetts even has a law that allows survivors to have access to small bank accounts without probate.

Your mother’s concern about losing control of her funds is legitimate. If a person becomes joint owner, the funds become exposed to any of their financial problems. And another caregiver here posted about the complications with Medicaid eligibility caused by changing account ownership, and that’s another reason to consult an elder law attorney. If you call on an elder law attorney near you, you may also learn about home care assistance programs that can help your mother, and you as a caregiver.

Helpful Answer (2)

Report

In California, a conservator can revoke a DPOA. Therefore, if your mother is conserved by a professional fiduciary or family member, your DPOA may be rendered useless. If you are concerned about the vulnerability of your mom, perhaps you should check into conservatorship and becoming mom's conservator of the person and estate but be careful, one unintentional wrong move on your part and the courts will replace you with a professional fiduciary and then the problems will really begin. Also, some banks will either not accept DPOA's or make it very difficult for you to use one so check with the bank about their policies. Money left in bank accounts will be probated. After the long process of probate, any money left will be distributed by an administrator or the executor named in the will to the heirs named in the will. If there is no will, any leftover money will go to the heirs.

Helpful Answer (2)

Report

In the state of New Mexico I had to go to the bank with my mother and have myself added to her checking account. We were having theft issues concerning a niece and the bank manager was very helpful with this. My mother was required to be there. We eventually closed that one and opened another at my bank, a joint account.
I did the same thing with my father's account.
When your mother passes away so does the DPOA.

You need to see an elder law attorney. Some will usually offer a 30 minute consultation free of charge to see if they can help you. If they can, then retain one.

Helpful Answer (2)

Report

If you have a durable power of attorney in most states you can pay her bills and enter into contracts if needed. However, if challenged in court you need to show your actions were for the benefit of your mother and not yourself. If you think you will need to place your mother in a NH then you need to contact a good elder law attorney to learn the ins and outs of spending down her funds before she enters the NH. Generally they advise you to provide for her funeral costs in a prefunded arrangement etc.

If you are not her sole heir, you need to care for her but not do anything the other heirs (who may not do a thing for your mother) could object to and tie up in the court system for yrs. If you are the sole heir your focus can remain solely on the parent's needs--where they should be anyway. Being the only child and sole heir , I didn't have to contend with a "peanut gallery" of relatives "advising" me --just kept the parent informed of what we were doing and why and got his consent in addition to the DPOA. If he objected to anything, I did what he wanted because it was his estate.

Good luck, try to stay focused on what is best for the elder? What would I want if I was in his/her position and I don't think you will go too far wrong.
It is a big responsibility.

Helpful Answer (2)

Report

Present your DPOA to the bank so they know who you are. You don't need a joint account to sign her checks for her. What happens to the money depends on whether or not she is in a nursing home and what bills are left to pay. Assuming some cash is left, the Executor of her Will is supposed to distribute it according to the Will. Do NOT sign any checks to yourself, that gets really messy and leads to charges of Fraud or Conflict of Interest.

How powerful is my DPOA?

18 Answers

Recent Questions

Popular Questions

Related Questions