21 Nov Why Your Elderly Parents Need a Financial Power of Attorney

From title fraud to telemarketing scams, there are all kinds of ways for criminals to steal  from the elderly. According to the FBI, elder fraud robs seniors of more than $3 billion dollars every year. Scammers are getting more and more sophisticated, and they can sound very convincing. They often target elderly people, hoping that they will be more easily confused or ready to give in under pressure.

Taking steps like setting up a financial power of attorney can help you protect your parents from criminals that prey on the elderly. Here’s a story we recently heard from one of our clients that explains how a POA can help.

Brenda’s Story:

“I stopped by to visit my dad one day when he was in the middle of a phone conversation. I interrupted him to ask who he was talking to, and he said it was tech support helping him unfreeze his computer. Suspicious of hackers, I asked if I could take over. I could tell right away that I was talking to a scammer. I hung up and immediately shut down his computer.”

“I am just so relieved that we set up a power of attorney,” said Brenda. “I was able to freeze my dad’s accounts and change all his financial passwords before the scammers could steal anything.”

How to Protect Your Elderly Parents from Scammers

• Make sure your parents are aware of the latest types of scams.
• Sign up for security alerts with a credit reporting agency like Experian.
• If they own real estate, sign up for title alerts with the County Recorder’s Office.
• Change their phone settings so that only contacts will ring through.
• Get listed as an authorized user on their credit cards and bank accounts.
• Set up an irrevocable trust to protect their most valuable assets.
• Get a financial power of attorney that names you as their agent.

How to Get Financial Power of Attorney for an Elderly Parent

Step 1: Ask your parent to consent to a power of attorney.

Ultimately, this is their decision and theirs alone. Many people are hesitant to sign a POA, because they think it means giving up complete control of their finances. But that’s not the case at all – the terms can be as specific as they like. They can also choose to revoke their POA at any time. 

Step 2: Decide on the terms of the agreement. 

Power of attorney does not automatically grant the agent or “proxy” full control. The terms can be arranged so that the proxy is only allowed to access specific accounts or perform certain actions. For instance, their duties might include managing the main bank account, making mortgage payments, and paying household bills.

Step 3: Meet with an estate planning attorney.

Trying to DIY legal documents is never a good idea. A lawyer can draw up the correct documents according to the terms you agreed on, and notarize your signatures to make the POA valid. They can also advise you on every legal detail and offer the reassurance of an expert’s perspective.

Please note:

It’s important to draw up these documents while your parent is still of sound mind. As long as you have a durable power of attorney, you can act on their behalf if they are ever incapacitated in any way. However, some lenders choose not to recognize POA agents. 

If your parent is suffering from dementia or is otherwise incapable of handling their own finances, further legal steps may be necessary. Unless you are already listed as an authorized user on your parent’s accounts, you may need to pursue other options like guardianship or conservatorship in order to gain access.

Estate Planning Services in Scottsdale

If you’re thinking about getting a power of attorney for your elderly parents, why not schedule a meeting with us? We’ll answer all of your questions and your parents’ questions in detail, so you can make a confident decision together. We can also advise you on the best ways to protect your family’s assets and preserve more wealth for the next generation.

To schedule a free consultation, please contact our office in Scottsdale or the Phoenix Valley location nearest you.

Photo by Vitaly Gariev on Unsplash used with permission under the creative commons license for commercial use 11/11/25.