Many California children have to help their parents manage their finances as they get older. This can be a complex task, and there are many financial and legal factors to consider. It can be beneficial to consider certain types of estate planning documents, such as a power of attorney, to help with this process and reduce the chance of complications.
Even if an elderly person is still physically capable of signing paperwork and making decisions, it can be beneficial to go ahead and draft documents in case things change in the future. A durable power of attorney can give a child the legal right to make financial decisions and take care of certain transactions on behalf of his or her parent. A durable power of attorney is a document that names a specific person to perform certain tasks, such make health care decisions or do financial tasks.
A durable power of attorney is effective, even if a person is not disabled. Meaning, drafting this document can allow an adult child to help a parent even if the parent is still capable of doing certain things for himself or herself. This can be a smart step in many situations and can give a California family peace of mind for the future.
Estate planning can be a complex process, and what a person needs to complete his or her plan depends on goals and objectives for the future. If an adult child is helping an elderly parent, a durable power of attorney can be beneficial. It may be helpful to seek an evaluation of the individual situation in order to understand what estate planning steps may be smart.