Disclaimer: This article provides general legal information under Indiana law. It does not constitute legal advice. Consult a licensed attorney for guidance tailored to your situation.
Detailed Answer
1. Power of Attorney
A power of attorney (POA) lets an elderly individual (the “principal”) designate an agent to make decisions on their behalf. Indiana law recognizes various forms:
- Financial POA: A durable financial POA under Ind. Code § 30-5-2 lets the agent handle banking, investments, taxes and other money matters.
- Health Care POA: Under Ind. Code § 16-36-1, a health care POA allows the agent to make medical and personal care decisions.
- Limited or Springing POA: You can tailor authority to specific tasks or trigger it only upon a certificate of incapacity.
2. Guardianship (Conservatorship)
If the elderly heir lacks capacity and cannot execute a POA, interested parties may petition the court for guardianship or conservatorship under Ind. Code Title 29, Article 3. The court appoints a guardian to manage personal care and a conservator to handle financial affairs. This process involves:
- Filing a petition with the probate court in the county of residence.
- Notifying the proposed ward and conducting a capacity hearing.
- Obtaining medical evaluations and filing required reports.
- Receiving ongoing court supervision and annual accounting.
3. Comparing Options
Powers of attorney offer flexibility and privacy. The principal selects a trusted agent and defines the scope. Guardianship grants court oversight but may involve more time, cost and reduced autonomy for the ward.
Choosing the right path depends on the heir’s current capacity, the urgency of decisions and family dynamics.
Helpful Hints
- Act early: Establish a POA while capacity is clear.
- Choose agents carefully: Select individuals who understand their fiduciary duties.
- Keep records: Document all transactions and decisions.
- Review documents: Update POA forms if circumstances or relationships change.
- Understand court costs: Guardianship can be more expensive and time-consuming.