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Many adult children assume that if an aging parent becomes seriously ill or loses capacity, they can simply step in and handle things. In New York, being someone’s son or daughter does not automatically give you authority over their finances.
Without a valid power of attorney, you may be unable to access bank accounts, pay bills from your parent’s funds, deal with insurance companies, manage property, or handle other financial matters on their behalf. If your parent no longer has the capacity to sign one, obtaining that authority can become considerably more complicated—and may ultimately require a court proceeding.
At Pitta & Baione LLP, we help New York City families plan ahead and also help them respond when planning didn’t happen in time. Below, we walk through what changes when there’s no power of attorney in place, what your options look like at that point, and how to set your family up so you’re not caught without authority to help.
What a Power of Attorney Does for an Aging Parent
A general power of attorney is a signed legal document that lets your parent name someone, called an agent, to handle financial matters on their behalf. Once it’s in effect, that agent can pay bills, manage bank accounts, file taxes, or handle real estate transactions without needing separate permission for each task. Without this document, no family member automatically has the legal authority to manage a parent’s finances, no matter how close the relationship.
A power of attorney agent’s job usually goes beyond writing checks. Depending on how the document is written, responsibilities can include dealing with insurance companies, applying for government benefits, or managing investment accounts.
An agent named under a power of attorney has a legal duty to act in the parent’s best interest, not their own. That means keeping accurate records, avoiding conflicts of interest, and using the parent’s assets only for purposes the parent would approve of. These duties exist whether or not anyone is watching closely, which is part of why choosing the right agent matters so much.
What Happens if There Is No Durable Power of Attorney in Place?
If your parent loses the ability to manage financial affairs without a valid power of attorney, the available options depend on what needs to be done and what other arrangements are already in place. In some cases, limited alternatives may be available. In New York, when significant financial or personal decisions cannot otherwise be handled, however, the family may need to seek an Article 81 guardianship. Then, a judge must decide whether the person is incapacitated before a guardian can be appointed.
Delays in Paying Bills and Managing Property
Guardianship proceedings take time, and during that time, ordinary financial life doesn’t stop. Mortgage payments, utility bills, and insurance premiums still come due even while a case moves through court. Families often end up paying these costs out of pocket or watching accounts fall behind because no one has clear authority to act.
Complications with Medical Decisions
Without a health care proxy, your parent loses the opportunity to choose in advance who should make medical decisions if they become unable to decide for themselves. New York law may allow certain family members or others to act as surrogate decision-makers in some circumstances, but relying on those default rules can create uncertainty, particularly when family members disagree about treatment, discharge planning, or long-term care.
How This Affects Families Managing 9/11-Related Benefits
Many of the people who responded to or survived the September 11th attacks are now older adults, and some are managing serious health conditions connected to their exposure, including cancer, respiratory disease, or cognitive decline. As these individuals age, the same capacity issues that affect any aging parent can affect their ability to manage ongoing claims and treatment.
For 9/11 responders and survivors, incapacity can affect more than household finances. A family may also need to communicate with the September 11th Victim Compensation Fund, obtain records, respond to requests for information, address an existing award, or coordinate treatment through the World Trade Center Health Program. A spouse or adult child cannot necessarily take over those responsibilities simply because the claimant is unable to manage them personally.
That makes advance planning particularly important for families who are simultaneously managing serious health conditions, ongoing benefit claims, and ordinary financial affairs.
Coordinating Claims without Authority
When a parent loses capacity without a power of attorney in place, families often discover the problem extends beyond bank accounts. They may struggle to access records, communicate with claims administrators, or make their own decisions about ongoing 9/11-related compensation or treatment programs. Without documented authority, even a well-meaning adult child can be locked out of information they need to help.
Coordinating Incapacity Planning With 9/11 Benefits
Our team works with families to put power of attorney documents in place before these gaps occur, and we help families who are already dealing with a parent’s declining capacity sort out their options. If your family is managing both an aging parent’s medical care and unresolved 9/11-related claims, we can talk through how those pieces fit together.
Choosing a Power of Attorney Before a Crisis
Choosing a power of attorney agent means picking someone your parent trusts to act carefully and honestly with their finances. This is often an adult child, but it can be another relative or trusted friend. The person doesn’t need financial expertise, but they do need to be organized, reachable, and willing to keep clear records.
When to Set Up a Power of Attorney
A power of attorney must be executed while your parent still has sufficient capacity to understand the document and the authority they are granting. A medical diagnosis, including dementia, does not automatically mean a person lacks capacity, but waiting until significant cognitive decline or a crisis develops can make the issue much more complicated.
Working with an Estate Planning Attorney
Our associate Lian Kuang-Maoga focuses her practice on trusts and estates, helping individuals and families plan for aging, incapacity, and the transfer of assets to the next generation. Her work includes powers of attorney, health care proxies, wills, trusts, and related planning, with an emphasis on helping families put the right protections in place before a health or capacity crisis arises.
Lian’s work also reflects the practical realities facing many families today, particularly members of the “sandwich generation”—adults who are simultaneously caring for aging parents while supporting children and managing their own careers and households. This fall, she will speak at the AABANY 2026 conference on the challenges facing caregivers balancing these competing responsibilities.
Working with an attorney who understands both the legal planning involved and the real-world pressures families face can make these conversations more practical, thoughtful, and easier to address before a crisis occurs.
Power of Attorney Form FAQ
Here are answers to some common questions we hear from families dealing with an aging parent and no power of attorney in place.
What Happens if My Parent Has Dementia and No Power of Attorney?
A dementia diagnosis does not automatically mean your parent can no longer sign a power of attorney. The question is whether they still have sufficient capacity to understand the document and the authority they are granting. If they do, planning may still be possible. If they no longer have sufficient capacity, the family may need to consider other legal options, potentially including an Article 81 guardianship.
What Happens if My Parent Refuses to Sign a Power of Attorney?
If your parent has capacity and simply doesn’t want to sign, you generally cannot force the issue. You can talk with them about the risks of leaving no one with legal authority, but the decision has to be theirs. If they later lose capacity without signing, guardianship may become the only path forward.
Can I Manage My Parent’s Bank Account without a Power of Attorney?
In most cases, no. Banks require documented legal authority before they’ll let anyone but the account holder manage funds, transfer money, or view detailed account activity. Being a close family member does not, by itself, give you that authority.
Is Guardianship the Same as a Power of Attorney?
No, guardianship and power of attorney are different tools. A power of attorney is a document your parent signs voluntarily while they still have capacity, while guardianship is a court process used when capacity is already in question and no advance planning exists. Guardianship typically takes longer, costs more, and gives the court ongoing oversight that a power of attorney does not require.
How Long Does It Take to Set Up a Power of Attorney?
Setting up a power of attorney is usually much faster than pursuing guardianship, often taking days or weeks rather than months. The timeline depends on how quickly your parent can meet with an attorney, review the document, and sign it. Getting started early, before any health concerns arise, keeps the process simple.
Contact Pitta & Baione LLP to Schedule a Consultation
If your family is trying to plan ahead for an aging parent, or you’re already facing decisions without a power of attorney in place, the team at Pitta Baione LLP is ready to talk through your situation. Contact us or call us to reach our team. We serve families across New York City and understand the pressure that comes with caregiving, benefit claims, and planning for the future all at once.
