If you’ve taken the step of getting a financial power of attorney (POA) in place for a parent, you’ve already done something important. A POA allows you to help manage your parent’s finances if they become unable to do so—or even just need a hand as they age. But many adult children walk away from signing the documents and wonder: Now what?

Here are some practical steps you can take to make sure the POA is actually usable when the time comes, and to help your parent now if they’re open to it.

1. Submit the Power of Attorney to Banks and Financial Institutions

Bring the signed power of attorney (POA) to your parent’s bank, sit down with a banker, and get it recorded on their system. This step is often overlooked, but it’s key.

Personal note: I recently did this for my own dad. He’s 90 and still mentally capable, but it gave both of us peace of mind knowing I’d be able to step in quickly if needed.

2. Use the Power of Attorney to Set Up a Separate Spending Account

If your parent tends to overspend or struggles with managing money, consider setting up a smaller account for day-to-day expenses. You can transfer a set amount each month, while keeping larger funds in an account you manage. This gives them some autonomy while protecting their savings from impulsive decisions.

3. Start Paying Bills or Reviewing Finances

With the POA in place and on file, you can begin handling bills or reviewing financial statements, if your parent is willing. You can have bills sent directly to you (or go paperless). Letting you stay ahead of late payments, missed notices, or suspicious charges.

4. Consider Freezing Their Credit

If you’re concerned about scams, aggressive salespeople, or new credit cards being opened, freezing your parent’s credit is a low-cost way to prevent new accounts. It won’t impact existing credit cards, but it creates an extra hurdle for anyone trying to open new lines of credit.

5. Watch for Hoarding or Overspending

If your parent’s behavior is shifting. If there’s hoarding, making unnecessary purchases, or giving money away impulsively; there could be deeper issues going on. Aging, cognitive decline, or even loneliness can play a role. This is where a conversation with a doctor, social worker, or geriatric care manager can be helpful.

6. Consider a Revocable Living Trust

If your parent’s situation becomes more complex, or you find the POA isn’t enough, you might consider setting up a revocable living trust. Unlike a POA, a trust allows the trustee (you) to directly control and manage assets. It can provide more structure, especially if your parent is no longer able to make sound decisions, and avoids the need for court involvement in many cases.

Final Thought
Having a POA is a good start, but it’s just the beginning. The above next steps will ensure you’re ready when help is needed. Giving your parents support that’s both respectful and practical.

If you need help putting any of these pieces in place or want to discuss whether a trust might be appropriate, feel free to get in touch.