Estate Planning Lawyers for Cleveland, Ohio

A power of attorney does not take away the decision-making authority of the principal. It appoints someone to act on behalf of the principal as provided in the document, but not to the exclusion of the person granting the power. If your mother granted power of attorney to you it allows you to act on her behalf, but she can also still act on her own. If she wants to revoke the power of attorney she can do so at any time, but given her diagnosis that may not be wise. It's likely the document will be needed again at some point in the future. The only proceeding that removes decision-making ability is a guardianship, which is done in the Probate Court (this is different than a power of attorney). Hope that helps!

When a policy owner takes out a loan against a life insurance policy’s cash value, that loan is secured entirely by the policy itself. It’s not a personal liability of the policy owner, and it doesn’t become a debt of the estate. The insurer tracks the outstanding balance and deducts it from the policy’s value. In your situation, your mother was the owner of a policy insuring your sister’s life. She borrowed against its cash value years ago. Because she wasn’t legally required to repay the loan during her lifetime, the obligation doesn’t shift to her estate. As executor, you don’t treat that loan as a claim against estate assets. The only impact is on the policy itself: the loan plus interest reduces the cash value if surrendered, or the death benefit if your sister eventually dies while the policy is still in force. What Happens After the Owner Dies Since your mother has passed and the insured (your sister) is still alive, the policy itself becomes part of the estate unless a contingent owner was named. That means you may have temporary control as executor. At this point you have several options: 1. Maintain the policy by continuing premiums if required. The loan remains in place and will keep accruing interest, which reduces the policy’s value. 2. Transfer ownership to your sister or another beneficiary under the will or intestacy laws. The new owner takes the policy subject to the outstanding loan. 3. Surrender the policy for its remaining net cash value, which will already reflect a reduction for the loan balance. 4. Allow the policy to lapse by discontinuing premium payments, though that wastes any remaining value. The right choice depends on the estate’s circumstances, your sister’s wishes, and whether preserving coverage has practical value. Executor’s Responsibilities Your duty as executor is to collect estate assets, pay valid debts and expenses, and distribute the remainder under the will or state law. Since policy loans are not debts of the estate, you don’t repay them out of general funds. The insurance company enforces repayment internally by adjusting the policy value. The only estate-level question is whether to hold, transfer, or surrender the policy itself. Review the Policy Contract You should review the actual policy contract to confirm ownership and rights after your mother’s death, as terms can vary. If the estate inherited the policy, the insurer will require documentation before you can act. For guidance on transferring ownership and managing the policy, it’s best to consult an estate attorney in your jurisdiction. Contracts Counsel can connect you with experienced estate attorneys who can assist with this process.

You can create your own power of attorney so long as it meets all the necessary requirements.

You can create your own will. However, having an attorney draft it for you will ensure that your wishes are carried out in all circumstances. Doing it yourself without having any experience may cause many problems after your demise.

I'm not a fan of either term as I find they just confuse things. Durable usually is referring that it remains effective after incapacity. Sometimes general is looked at as terminating at becoming incapacitated. Another term which comes up is springing which this one makes more sense where it isn't effective immediately but upon a date or occurrence (usually someone being deemed incapacitated). I don't think I'd ever create a POA where it terminates at incapacity since that's when I'd need it to work. Now you say your mother has dementia. Will she understand what she is signing and the purpose of the document? If not, she doesn't have the required mental capacity to establish a POA and will have to have a guardian appointed by the court.