Many adult children discover they’ve been named as their parent’s Power of Attorney (POA) or Successor Trustee. These legal roles come with real responsibilities, but the timing and scope of each can be confusing — especially if you’re trying to respect your parent’s independence while also stepping in to help.

If you’re named in either role (or both), here’s what you need to know, what challenges to expect, and how to prepare before you’re forced to act in a crisis.

Power of Attorney: What It Is and When It Applies

A Power of Attorney document gives one person (the "agent") the authority to make financial or legal decisions on behalf of another (the "principal").

There are two main types:

Durable POA: Effective immediately and continues even if the person becomes incapacitated.
Springing POA: Only becomes effective once certain conditions are met — usually when a doctor certifies incapacity.

The authority under a POA can include things like:

Paying bills and managing bank accounts
Handling taxes and insurance
Overseeing investments
Managing real estate

However, a POA ends when the person dies — it cannot be used to administer an estate, which then falls under the Personal Representative or Executor/Executrix role.

A Growing Challenge: Some Banks Reject POA Documents

Even with a legally valid POA in hand, you may find that banks and financial institutions hesitate or outright refuse to honor it. This is an increasingly common problem.

Why do banks push back?

They worry about fraud or financial elder abuse liability.
If the POA was drafted many years ago, they may treat it as outdated.
Some institutions require the use of their own internal POA forms.
They want to verify incapacity before honoring springing POAs.

What can you do about it?

Get the POA document reviewed and updated every few years, especially if your parent’s circumstances change.
Pre-file the POA with banks or investment firms before it’s needed.
Have your parent add you as a joint owner or authorized signer (where appropriate) for simpler accounts like checking or savings — but be aware of potential gifting, liability, and estate planning consequences.
In complex cases, consider working with a financial advisor or elder law attorney to navigate resistance.

Successor Trustee: What You’re Responsible For

If your parent has a revocable living trust, it likely names them as the initial trustee and you as the Successor Trustee.

As Successor Trustee, your role typically begins:

At incapacity (if defined in the trust language), or
At the initial trustee’s resignation, or
Upon death

Your responsibilities will include:

Managing and distributing trust assets according to the trust terms
Filing tax returns and settling final expenses
Keeping records and communicating with beneficiaries

Unlike a POA, your authority under the trust is limited to assets held inside the trust — anything outside (like IRAs, individually titled accounts, etc.) must be managed under POA or by the estate executor.

When Should You Step In?

Knowing when to act — and how — can be tricky.

Signs it may be time to step in:

Bills are unpaid, or financial mistakes are being made
Cognitive decline is affecting decision-making
You’ve been helping behind the scenes, but it’s becoming clear that stepping in more fully is the best way to make sure your parent’s finances are on track

Just remember: having the legal documents doesn’t automatically give you the right to act. Your parent must be willing to let you help (if competent), or your authority must be clearly triggered by the document terms.

📝 Download the Free Checklist:

Named POA or Trustee? Here’s What to Do Now
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This one-page reference guide walks you through what to review, what to gather, and how to prepare before a financial emergency forces your hand.

How to Prepare Before There’s a Crisis

Here’s what we recommend to every adult child who’s been named:

✅ Ask for copies of the POA and trust documents now
✅ Confirm whether the POA is durable or springing
✅ Clarify which assets are inside vs. outside the trust
✅ Maintain a current list of accounts, advisors, and institutions
✅ Have a financial advisor or attorney review the documents for gaps or outdated terms
✅ Ask your parent to file POA documents with any key banks or investment firms proactively (if competent)

You Don’t Have to Navigate This Alone

Serving as POA or Successor Trustee can feel overwhelming — but you don’t have to figure it out by yourself.

At Stonehearth Capital, we regularly help families organize their parents’ finances, simplify income and cash flow, and coordinate with estate attorneys and tax professionals.

If you’ve been named in one of these roles and want to get ahead of it before it turns into a crisis, we’re happy to walk you through what to expect and help you build a clear action plan.

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We’ll answer your questions and help you think through the next steps based on your family’s situation.

What to Do If You’re Named Power of Attorney or Successor Trustee for a Parent