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POA adult child w/DPOA Was added to parent’s SAVINGS & CHECKING ACCOUNT? POA had credit issues and has been unable to get a credit card of their own. CAN POA BE AN AUTHORIZED USER ON principle’s CREDIT CARD? Peers to be that there are too many blurred lines and possibly a conflict of interest. Maybe I’m wrong but it just doesn’t make sense.

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I was POA for a friend I helped. I got the POA before the Dementia set in. I got added to her checking account. It really helped when paying her monthly bills when she was in and out of the hospital after surgeries and time spent in nursing homes. When she passed away, it made paying final bills so much easier. There definitely has to be a high level of trust and respect between both parties. In my case, it worked out well.
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Ohwow323 Sep 2023
Could not have said it better!
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EllaW222: Pose these questions to an elder law attorney especially since the principal has dementia. Was the principal of sound mind when the DPOA was drawn up?
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Ask your parent’s bank. They deal with the legal as well as transparency issues and set these “guardian “ accounts up for their depositors.
as others have stated. - if you CO mingle her money with your account or if you use her money for your expenses then you will have a tax liability- as if that money is yours = another “income”.
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Just a quick suggestion. You should use a debit card not credit card. When I got the POA paperwork in for my Dad at his bank, they issued me a debit card on his checking account and it has my name and signature on it. Then no question on it being accepted and you know the money used was specifically for him.
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taimedowne Sep 2023
I am curious what bank this was because I was POA at two large banks (USAA and Wells Fargo) and neither one would issue a card or checks in my own name, although it would have been useful at times if people needed to see an ID when using the card.
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You can open a checking account with anyone you want on it whether they are a POA or not. I’m fact, if you are NOT the POA then it is simply a joint account. If you ARE the POA then you don’t get added to the account per se you just have the ability to conduct transactions on behalf of the account holder. To illustrate the difference, if it is a joint account you will get your own ATM card but if you are POA then you will not. You will continue to use the ATM card of the account holder.

As for credit card, the same thing is true but slightly different. If you are an authorized user then the account still belongs to the account holder BUT you will be issued your own credit card. People often do this for their children.

So the answer to your question is “Yes” but it is not clear what you are trying to do or what motivates your question.

Are you wanting access to pay bills for the principal or to use for your own purposes? If the former then just acquire POA on the accounts. If the latter, I would not advise commingling funds and transactions.
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These matters need to be clarified with an elder / estate / trust attorney.
And, call the credit card companies, although do not rely on them for legal authorization.

Gena / Touch Matters
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MrsJim Sep 2023
Yes.
I did.
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These questions really need to be directed to the financial institutions involved.
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It is legal for a parent to add you to their checking and saving accounts if the parent is of sound mind. You and your parent have to go in person to do this transaction. After making my daughter DPOA, we went immediately to my bank to add her to my account so she can transact any business for me if I become incapacitated.

However, for anyone to be an authorized user on your parent’s credit card your parent MUST approve this with the credit card company and the parent must be of sound mind to do this.
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angela1973 Sep 2023
What’s a DPOA
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Yes. I had to send the financial institutions POA proof, and in some cases go to the institution to add me. Took months, but if you need to access those funds for their care and they have dementia and cannot consent, you must be listed on the account. Checks signed by you are followed by “POA” in the signature line of their name is on the check.
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Confer with Elder Law Attorney for your and everyones protection.
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Guess I did not read the second question. IMO to be on the card would mean you only use it for buying things for the person who assigned you POA. You buy nothing for yourself. The debt is the principle credit card holders responsibility. I am the only one authorized to add someone to my card.

Are you sure you should be handling the principles financial matters?
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Depending how the DPOA is worded, yes the bank can add you as a joint account holder. My mom’s bank wanted to add me (their reason was sound) but I said no because I don’t want any questions from anyone about WHOSE money it is. Instead, I was added as the POA on her bank accounts. While she’s alive, I can sign checks for her and do all financial transactions on her behalf. Her CC is hers, not mine. We use it only to pay for her goods and services. And I keep a file with receipts, invoices, etc. With your question on the CC, I don’t think someone else can be authorized. My mom’s bank actually issued me my own debit card on her checking account, because they did not want me to use her debit card to take out cash (for her) at the ATM. On her CC, they were ok with my using it to pay her bills but they would not add me as POA to that card, so I cannot see her CC statements online. But I CAN receive her CC statements by mail. It’s weird.

Talk with her bank. They’ll advise what can and can’t be done.
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I was on my Moms account. Not sure how it was worded. The big thing is never co-mingle your money. When Medicaid gets involved any bank acct with the recipients name on it is considered the recipients. Then you have to prove what is the other persons.
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The titling of the accounts can be fine. Joint accounts can be an estate planning tool if someone doesn’t have a lot of money and needs the joint owner to be able to pay their final expenses, otherwise authorized as POA may be better.

The important thing is to be clear that no commingling of funds is occurring. It needs to be reasonably easy to see that the parent’s funds are being used to pay for the parent’s needs. All receipts should be retained and reconciled with the monthly statements.

The POA as authorized credit card user keeps them from personal responsibility for paying the parent’s bill, which is fair, since only the parent’s expenses should be included on the bill.
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See an elder law attorney. Adding a name to account as co-owner of that account is INCORRECT management as POA. The POA should be added only as a POA and the POA is accountable TO THE COURTS for every single penny into and out of an elder's account.

If you suspect a POA is unaware of their fiduciary responsibility or is unable to do it, then you should see an elder law attorney with your evidence and should file a request that the court examine the records of the POA.
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Tinaejs Sep 2023
That's when you're Conservator, not POA.
My husband was Conservator for his father (he had a mental illness). He had to account for absolutely everything and report it all to the courts.
I am POA for my parents, the rules are much more relaxed. I am on their checking account and have a credit card in my name on their account (and have since before I was POA) and my attorney says it's fine.
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My mom hands over her credit card to any of of my siblings running errands or picking up groceries for her. No one has ever been questioned about it.
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akababy7 Sep 2023
Momma was doing this but siblings would go shopping on mommas credit card and run up a couple of hundred dollars or more and not tell her. Since I am POA and pay her bills I noticed it. They were taking advantage of her. I lowered the cc limit because every month her bill kept going up and up. I have her cc now since she is in assisted living and I use it for her needs only.
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As I understood this in my state, the expenditures made by the POA were made, and MUST be made, solely for the care and benefit of the person originally granting the POA.
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Yes, a POA can authorize themselves and become a user on the credit card account (and bank accounts) of the person they have POA for.
If the POA is active.

If the POA is not active because no one is incapacitated, anyone with good credit can make someone else an authorized user on their credit card by calling the credit card company and doing that.

They will then issue a card with the other person's name on it.
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Are you the POA in question? If not, who is?

I am joint on my mom's checking account but I don't spend any of her money on myself. Now that the DPOA is activated due to incompetency, I sign her checks as her DPOA.

Did mom give POA a credit card before she became incompetent? If so, I guess it's OK. I doubt that it's illegal but the POA should be keeping good records as they may be called upon the carpet to prove that they paid for their expenses and not your mom. So it can be pretty messy and kind of a nightmare to keep track of. I would not recommend it and would try to change this situation.

Good luck.
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BurntCaregiver Sep 2023
@again

Mom doesn't have to give the POA a credit card. If the POA is active because she's incompetent or incapacitated, the POA can put themselves as an authorized user on the credit card accounts.
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