Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Power of Attorney
In Tennessee, you can grant a durable power of attorney to appoint an agent to handle financial decisions. Under Tenn. Code Ann. § 34-6-201, you must sign the document in the presence of two witnesses or a notary public (Tenn. Code Ann. § 34-6-201). You can specify broad or limited powers, such as managing bank accounts, paying bills, or selling property. A durable power of attorney remains effective if the principal becomes incapacitated, unless you include a termination clause.
For health care decisions, Tennessee’s Medical Power of Attorney lets you authorize an agent to make medical choices if you cannot. The form and execution requirements appear at Tenn. Code Ann. § 68-11-201 (Tenn. Code Ann. § 68-11-201).
Guardianship and Conservatorship
If an elderly heir lacks the capacity to appoint an agent, you may pursue guardianship. Under Tenn. Code Ann. §§ 34-6-101 to 34-6-109, any interested party can petition the probate court for a guardian of the person and/or a conservator of the estate (Tenn. Code Ann. § 34-6-101). The court appoints a guardian only after clear and convincing evidence of incapacity and may require bond, periodic reports, and annual accountings.
Representative Payee
If the heir receives Social Security or SSI benefits, the Social Security Administration can assign a representative payee to manage benefit payments. You can apply online or contact your local SSA office. This option allows benefit management without court intervention.
Advance Directives and Trusts
Consider other tools like living wills, health care advance directives, or revocable living trusts. A successor trustee can step in to manage finances under a trust without court oversight. Always tailor documents to the heir’s needs.
Helpful Hints
- Obtain a professional capacity evaluation before seeking guardianship.
- Keep thorough records of financial and health care decisions.
- Regularly review and update documents to match changing circumstances.
- Work with a Tennessee probate or elder law attorney to navigate forms and court processes.
- Communicate plans with family to reduce disputes and confusion.