When do you need a power of attorney?

It can be tough to see a loved one’s mental decline when you're in the thick of it. That makes it hard to know when to step in. Lynn Boger, who has cared for her 91-year-old mother in Rochester, Minnesota for nearly a decade, knows this all too well.

“My mom decided to stop paying her mortgage and her house went into foreclosure,” Boger says. If that wasn’t bad enough, Boger couldn’t help at first. “I couldn't talk to her bank without her permission or legal declaration of incompetency,” she says.

In Boger’s case, a doctor’s statement allowed her to gain authority over her mother’s finances to keep her safe. But without that, things could have gone much differently.

Lesson learned: Having a power of attorney set up sooner rather than later is key. It can be hard to bring up, but a power of attorney can be very useful—even if you don't need it for years.

For Karla Businaro of Chaska, who cared for her mother until she passed away at age 88, a signed power of attorney made the transition to caring for her mother relatively smooth.

“I can't stress how important it is to have a power of attorney signed when the person is aware of what they're doing,” Businaro says.

Margaret Barrett, owner and attorney at St. Paul-based Safe Harbor Estate Law, knows the transition to caregiving can be overwhelming. Her father has dementia. So she can relate to her clients who aren’t sure where to begin.

“Power of attorney gives caregivers the authority to handle the person’s finances and legal matters,” Barrett explains. With it you can:

• Access your loved ones accounts
• See how much money they have
• Pay for their care
• Hire an attorney
• Hire different professionals, like a tax accountant

Especially if the caregiver is the one paying the bills or the assets are not in a trust, it's smart to have the power of attorney, Barrett says. But when in doubt, consult with an elder lawyer. They can help to determine which route is best for your situation.