I used to think this too - sign a POA and essentially give someone else power over everything and give up your own. It’s not the case. A POA empowers another to act for her as agent. But if the person lacks legal capacity that’s another matter. When the individual and their agent conflict, yes the individual can revoke the POA.Not correct. The POA gives him the power to act in her best interest. It does not mean he must ask or listen to her. Her recourse if she is still competent is to terminate the POA. If he believes “it” is in her best interest and does not violate fiduciary he can AND SHOULD act accordingly. Then she can fire him and undo it if she wants. There is no duty to listen to her.My point in mentioning a conservatorship was exactly that - if she still has legal capacity, it’s her decision how to invest. The DPOA enables him to act for her but not go off in a different direction from what she wants. I have a lot of ideas about what is best for my relative but I’m not doing those things against her will. I checked with a lawyer early on whether she had legal capacity. It can be a bit fuzzy with some ailments.A conservator would be the last way I'd go. It is an unnecessary and inapplicable legal proceeding. In fact, I doubt one could be obtained because there is no legal need for it. Typically a conservator is for situation where the person has no advance directives (a DPOA), and is incapable of handling their own affairs (like Brian Wilson of the Beach Boys). The court then would provide oversight to the entire process as well. Expenditures would be scrutinized, by the court. In this case, there is a DPOA with an attorney in fact who will be acting in good faith and due care on behalf of the person. The legal paperwork is in place. Mom put in place for a reason.Has a conservator been appointed? Is her dementia mild, moderate or severe? If she still has *legal capacity* to make the decision, and her decision is consistent with her best interests, I’d do that even if it isn’t the best possible course of action. You say she “technically” doesn’t need the cash - however maybe she could benefit from the cash - better food? Better care facility? A buffer for the unexpected or peace of mind?
As agent under a durable POA, you are permitted to act on her behalf, and required to act in her best interests, but the money is still hers and giving her a sense of control may be better for her than investing if investing is new to her.
I’m glad you asked this because my mother prefers CDs. She’s in a relatively low tax bracket and although t bills might have a higher real yield I put her very low yielding savings, after consulting with her and getting buy in, into a 5 percent CD, giving her around an extra $1300/mo, which she can really use given her costs. An index fund might yield more but she’s not familiar with that, there is a risk of loss and her time horizon, which I hope is long, is unknown.
Statistics: Posted by AnnetteLouisan — Tue Sep 24, 2024 7:49 pm — Replies 39 — Views 2534