Are you a Power of Attorney or Healthcare Representative for a senior parent? Here’s what you need to know

Being asked to be a power of attorney or healthcare representative for a parent is a scenario that sandwich generation folks are often familiar with.? Many agree to take this on as part of their natural role as son or daughter, but are not aware of what the tasks actually involve or how much work it is when the time comes to act on it.? Here are some pointers so that if you are a power of attorney or healthcare rep, you can prepare a bit in advance and save yourself a lot of stress later down the road.

Who to choose?

Let’s take a step back first and consider whether you’re involved in helping your parents choose who they should name as power of attorney or healthcare rep. ??If your parents have multiple children and are considering which among you or your siblings to choose, you may want to suggest to them the following considerations.?

Location - while proximity is not required for either role, it sure makes things a whole lot easier.? Some of the responsibilities associated with being a power of attorney involve things like checking the mail, paying bills, dealing with the bank, and other household matters.? Being a healthcare rep involves keeping on top of healthcare developments, dealing with doctors and medical professionals, and being present for appointments.? Some tasks can be handled remotely, but usually not all.? Do be prepared to commute, and for those who live in a different province than their parent, this may require a few in-person trips, or setting up things so that you can handle the tasks remotely (such as online banking).?

Time constraints – being a power of attorney or healthcare rep can sometimes feel like a part-time job so consider whether the person named has the time and energy required for the role.? Are they a good multi-tasker, are they organized and good at record keeping?? Do they have some extra time to attend to these matters or are they already working a 60 hour week at work??

Personality and Familiarity – the person named as power of attorney or healthcare rep has to act in the best interests of the senior, and are often making decisions based on their best judgement.? I always advise clients to talk to their family about their specific wishes, so that the family doesn’t have to guess or debate with each other.? This talk doesn’t always happen however, so it is important for the power of attorney or healthcare rep to have a good relationship with the senior, and make decisions in the same way that the senior would for themselves.

I should mention that in some cases, there might not be an appropriate family member to appoint.? There are professionals who can act as power of attorney, such as trust officers and lawyers.? There are some pro’s and con’s when deciding whether to appoint an arms-length party as a power of attorney vs. a family member.? Contact me if you’d like to discuss.

How to Prepare in Advance

The first step in preparation is understanding what your responsibilities are.? A power of attorney is responsible for all financial and legal decisions, and this would include tasks such as paying bills, maintaining assets such as investment accounts, keeping debts in good standing, filing tax returns, renewing insurance, and keeping organized records.?

The main aspect of preparing in advance for either role of power of attorney or healthcare rep is really all about knowing what your parent’s wishes are, having the information you need in advance, or knowing where to find it.? In a crisis your parent may not be able to tell you the information you need.? It may be a good idea to talk to your parent about their wishes regarding home care services vs. moving to a seniors residence, and to also learn more about their financial circumstances (net worth, cash flows, etc.) so that you know whether they can afford private-pay services or need to rely on the government subsidized system.

If you are a power of attorney, here is an information checklist for you to go through with your parent.? This is not intended to be an exhaustive list, but just to get you started:

1. Who prepares their annual tax return and where is last year’s copy?

2. Where are their bank accounts and investment accounts?

3. What are their main sources of income?

4. Do they have any debts and if so, with whom? (mortgage, line of credit, etc.)

5. What are their normal monthly expenses – subscriptions, memberships, credit cards, gardener or other services, etc.

6. What utilities providers do they use for cable, internet, gas, electricity, etc.

7. Who provides their home insurance and when is the annual renewal?

8. Is there a safety deposit box?

9. Are there any other notable assets that need managing, such as real estate or business interests?

If you are a healthcare representative, it would be useful to know your parent’s list of medications, any chronic conditions or illnesses, their medical history and the name of their GP or medical specialists.?

Unexpected events can happen anytime, and having this information in advance will help you be able to act calmly and make good decisions for your parent if they are temporarily hospitalized or require a larger lifestyle change – and ultimately help you avoid a family crisis!