When does someone become a Power of Attorney (POA)? It is when a person is alive but unable or unwilling to handle financial obligations. Power of Attorney documents do not expire. Therefore, this obligation terminates once a person designates another person to be their POA or can manage their finances or the person dies.

When becoming a Power of Attorney, you must understand a person’s income, assets, and liabilities. First, a POA needs to know how everything is listed. For example, how are the income, assets, and liabilities listed? Are they in the person’s name or a Trust name? Understanding this is essential since a person cannot use a Power of Attorney document to manage assets in a trust. The following checklist will help the POA understand the person’s financial situation.

Power of Attorney Checklist – Person’s Information and Trust’s Information:

• Does the POA have an adequately completed Power of Attorney document?
• What is the Estate Planning Attorney’s name and contact information?
• Confirming the person’s legal information, such as
  • The person’s legal name.
  • Social Security Number (SSN):
  • Date of birth:
• You need the Trust’s name and tax ID number if a person has a trust and wants the POA to handle the Trust. Contact the estate planning attorney for legal documents required for a trust.

Income Resource and Amount:

POAs need to confirm all income the person receives. Therefore, see if the person qualifies for any of the following:

• Social Security Income (disability, retirement)
• Pension(s)
• Annuity
• Charitable Gift Annuity
• IRA(s)
• 401K(s)
• Business income
• Rental Property Income
• Dividend Income
• Interest Income
• Royalty Income, including terms and payment plan
• Personal Loans, including who is paying, payment plan, and terms of the loan
• Sale of an item’s terms and proceeds

Assets:

POAs need to understand a person’s assets. Accordingly, POAs need to figure out all accounts a person has, such as:

• Checking Account(s) – Financial Institution Name(s), Address and Account Number
• Savings Account(s) – Financial Institution Name(s), Address and Account Number
• Money Market Account(s) – Financial Institution Name(s), Address and Account Number
• CD Account(s) – Financial Institution Name(s), Address and Account Number
• Investment Account(s) including Financial Advisor(s) name, firm’s name, account number(s), and types of accounts:
  • Retirement accounts
  • College savings account
  • Stocks
  • Bonds
  • Mutual Funds
  • Cash
• Do they own Property? POA will need to know all the details of any properties owned and which is their primary residence.
• Do they own a car(s)? If yes, POAs will need the car details, including ownership, make, model, and year.
• Does the person have high-value personal items (jewelry, watches, art, furniture, etc.)? What is it? Where is it? Has the high-value personal item been appraised, and is it insured?

Liabilities:

Moreover, a POA needs to understand a person’s bills.

• How are bills paid – through auto-pay, written check, or paid online?
• How are home bills (gas, electric, phone, internet, cable, and trash pick up) paid, and when are they due?
• Does the person have a Visa / Mastercard / Discover / American Express credit card? If yes, what is the financial institution, contact information, card number, and how is the payment made?
• If they own an automobile, when is their registration due, and how do they pay for it?
• If they have an automobile, do they have car payments? If yes, what are the terms of the payments, and how are they paid?
• Do they have any leases or loans? If yes, include the vendor’s name, contact information, lease/loan number, and the terms of the lease/loan, including scheduled payments.
• Do they have a Safe Deposit Box? If yes, the POA will need the Box location, including bank name, address, box number, Box key location, who is authorized to go into it, how paid, and when it is due.
• Does the Principal owe any rent or mortgage? If yes, how much, how is it paid, and when is it due? 
• If they own any property, property taxes will be due, and the POA will need to know when they are due, who to pay, and how to pay.
• Do the properties have HOA fees? If yes, then what is the amount? Who to pay? When are they due, and how are they paid?
• Are there additional expenses, such as a housecleaner, gardener, caregiver, or help? If yes, how do they bill, and how are they paid?

Personal Insurances:

Knowing a person’s assets and liabilities is essential for a POA, but understanding a person’s insurance coverage is equally important. Plus, the POA must understand each policy’s premium and payment schedule: annually, semi-annually, quarterly, or monthly. Furthermore, how is the premium paid – auto pay, by check, or online? Here is a list of policies a person may have:

Homeowner’s Insurance for each Property, including

• Carrier & contact info
• Policy number
• Policy period
• Premium information

Rental Insurance

• Carrier & contact info
• Policy number
• Policy period
• Premium information

Auto Insurance for each car

• Carrier & contact info
• Policy number
• Policy period
• Premium information

Umbrella Policy

• Carrier & contact info
• Policy number
• Policy period
• Premium information

Annuity

• Carrier & contact info
• Policy number 
• Terms of the policy
• Payment plan – Is there a premium owed, or does the policy payout include the payment schedule and amount?

Long Term Care

• Carrier & contact info
• Policy number
• Premium information, if applicable
• What is the waiting period before the policy pays the claim?
• What are the policy terms, including the monthly maximum for paid claims? Is there a cap on the total payments the policy will make?

Life Insurance (list all policies)

• Carrier & contact info
• Policy number
• Policy terms (Could this policy be a resource while the person is alive?)
• Premium information

Health Insurance (primary and excess policy(s) if applicable)

• Carrier & contact info
• Policy number
• Premium information

Dental Insurance

• Carrier & contact info
• Policy number
• Premium information

Eye Insurance

• Carrier & contact info
• Policy number
• Premium information

Checklist for Power of Attorney – Additional Information Needed:

Beyond gathering all the information listed above, POAs should consider the following:

• Tax Specialist Name, Address, and Phone Number for history and annual tax filing
• What are the usernames, passwords, and recovery devices for online accounts?
• The POA will need additional information if the Principal has any rental property or businesses.
• Consider putting a credit freeze on the person to avoid identity theft.

Becoming a POA is vital since one acts on behalf of another person. A lot of information needs to be gathered. STAGES, a resource for helping people in the aging community, developed this checklist to help you with this process.