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Power of Attorney for Financial Matters

If you have power of attorney for a relative that allows you to manage their financial matters, keeping track of everything and managing their affairs can get complicated. The key is to keep things separate and organized. Here are some tips, but keep in mind that every bank has its own rules and procedures, so check with your local bank before doing any of the following:

  • Create a bank account in your relative's name: Opening a separate account to handle all the financial matters concerning your relative is the easiest way to keep track of everything and more importantly, to keep everything separate. It's extremely important to keep your power of attorney finances separate from your regular finances in case there questions about your handling of the power of attorney finances down the road. It can be a nightmare to piece together which expenses were related to power of attorney matters after the fact.
  • Whose name should the account be in: Banks differ, but in general get the account in the name of the person you have power of attorney over. Having the account in your relative's name keeps things distinct and since you have power of attorney you will still have access and control over the account.
  • Who do you sign the check as: Find out what your bank prefers, but in general you can sign checks in your relative's name, include the phrase "power of attorney" or "POA" and then include your own name.

Maintaining a separate account for your relative, in your relative's name, makes paying bills and receiving payments much easier. Finally, it will also help come tax time, and save you headaches down the road if the IRS or someone else ever challenges your power of attorney status.

Next Steps
Contact a qualified elder law attorney to help you
and loved ones plan care and address problems.
(e.g., Chicago, IL or 60611)

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