Why experts say you should have a durable power of attorney

(Aging Untold) — Most older Americans rank independence as a top priority, but many never complete the necessary paperwork that can help maintain it.

Only 33% of people 55 and older have designated a durable power of attorney — a legal document that ensures a person’s wishes are followed should they become incapacitated, a study by Merrill Lynch and Age Wave found.

Experts said the document is not exclusive to older adults.

Gerontologist Sam Cradduck said anyone 18 or older should have their affairs in order.

“You never know when the accident’s going to happen,” Cradduck said. “We don’t call them ‘on purposes.’ We call them accidents.”

Why people delay — and why that’s a problem

Cradduck said younger people often believe they are invincible and don’t plan ahead, while older adults sometimes resist because they fear giving up control.

She said that perception is a misconception. When the crisis happens, you’re not giving up control.

“You’re actually protecting yourself and you’re protecting your assets, and you’re protecting your family members from all of the pain and suffering they’re going to go through,” Cradduck said, “And you’re not coming home to your electric shut off, your house being repossessed, because nobody paid the bills.”

Dr. Rhea Rogers, a board-certified physician, said a durable power of attorney is one of the most misunderstood legal tools. The definitions vary and many people don’t fully understand what the document covers.

How durable power of attorney works

Aging expert Amy O’Rourke explained that the “durable” designation is the key distinction.

Depending on the state, the document might take effect immediately upon signing or become active only when the person is deemed unable to make their own decisions.

O’Rourke said a critical and often overlooked detail is that the person being designated does not sign the document — the person granting the authority does. So, she urged people to inform the designee.

She said she encountered a case in which a nephew in Washington learned he had been named his uncle’s power of attorney without ever being told.

O’Rourke said the nephew told her, “I didn’t know it. I don’t even know what I’m supposed to do.”

Choosing and updating your designee

Aging-well coach Katherine Ambrose advised that the person designated must be strong, willing, qualified and able to stand up to other family members or other people involved if necessary.

“And they have to look out for that person and that gives the protection, prevents abuse, and look out for them more than they’re looking out for themselves,” Rogers said.

The panel said choosing the right person requires careful thought — not simply selecting the loudest or most vocal family member, but the most responsible one. They also recommended naming a successor in case the primary designee is unavailable.

And regular reevaluation is essential, O’Rourke said.

She noted that a designee’s circumstances can change — including age, health or a divorce — which could affect their ability or impartiality.

“Did you get a divorce and you forgot to update your paperwork? And your ex is the one that’s in charge of everything?” Cradduck said.

Capacity, conservatorship, and financial institutions

Cradduck warned that waiting too long to sign the document can result in losing the legal capacity to do so. If that happens, a court may appoint a conservator instead.

“The difference between conservatorship and you having a choice is you doing your paperwork on time,” Cradduck said.

O’Rourke also advised that power of attorney holders proactively register the document with every financial institution the person uses, noting that many banks require their own separate form in addition to the legal document.

Cradduck noted that a durable power of attorney becomes void upon the person’s death, at which point an executor takes over.

“This isn’t about facing your mortality. This is just about having your ducks in a row and so things go your way and you will save money and trauma by taking care of these things in advance,” Ambrose said.

The hosts said early planning covering finances, medical decisions and end-of-life matters is essential for people at any life stage.