Dementia, Alzheimer’s, or a number of other medical conditions can leave your loved ones unable to manage their own personal affairs. In this difficult situation, a power of attorney or legal guardianship gives someone else the power to handle your loved one’s assets, although there are significant differences. Understanding the distinction between these two options will help you decide which is best for your unique situation.

Legal Guardianship vs. Power of Attorney

What Is a Power of Attorney?

A power of attorney is a legal document giving someone the authority to act on someone else’s behalf. Even if your loved one is suffering from a cognitive disease, they may still be able to sign a power of attorney, empowering you to pay their bills, access their financial records, and manage all their financial affairs. As a less contentious, complex process than legal guardianship, establishing a power of attorney is the preferred option. Both parties must be legally competent to grant power of attorney. 

Becoming a Legal Guardian

Legal guardianship grants family members many of the same abilities as a power of attorney, but the process is typically longer and much more expensive. Courts are generally hesitant to take people’s rights away, so you’ll have to present clear and compelling evidence that your family member is no longer competent to manage their own affairs. Gaining legal guardianship can be an adversarial process, especially if other family members disagree, so the legal fees can quickly escalate. Once you’ve obtained guardianship, the court will require you to seek approval before selling assets, acquire a bond, and submit annual reports to ensure you’re protecting the ward’s interests. Due to the expense and complexity, becoming a legal guardian should be considered an option of last resort.

If you need the authority to manage a loved one’s affairs, Hackworth, Ferguson & Thompson will explain your options and help you choose the approach best suited to your situation. With their background in estate planning law, they’ve provided compassionate support to clients throughout southeast Missouri. Visit their website for an overview of their practice areas, follow their Facebook for more legal tips, or call (573) 223-4247 to speak with an attorney today.