Many Indiana families only find out their Power of Attorney is broken when a bank teller or hospital administrator quietly says, “We cannot accept this.” By that point, someone is already sick or struggling, bills are piling up, and the family assumed the signed and notarized form in the folder would be enough. That sinking feeling is what we want you to avoid.
For many adults in Indiana, a Power of Attorney looks like a simple checkbox in an estate plan. They download a form, list a trusted child or friend, sign it, and put it away. The real test, however, comes years later when that document meets a bank’s legal department, a long-term care admissions office, or a careful medical provider. If the wrong powers are missing, or the wrong person is in charge, the family can quickly end up in court for a guardianship.
At Rice & Rice, we have spent more than 50 years focused on elder law and estate planning, serving over 12,000 families across Indiana, Illinois, and Michigan. We see the same preventable Power of Attorney pitfalls again and again, especially for older adults in Indiana. In this guide, we walk through the most common ways Powers of Attorney fail in practice and how thoughtful planning can make sure your document actually works when your family needs it.
Why Power of Attorney Pitfalls Matter So Much in Indiana
A Power of Attorney is supposed to be the tool that keeps your family out of court when you cannot manage things yourself. In Indiana, a financial Power of Attorney lets a trusted person pay your bills, manage your bank accounts, handle insurance and investments, and deal with property while you are alive. Separate healthcare documents cover medical decisions and end of life choices, so that doctors know who can speak for you and what you want.
When these documents work, they allow a spouse or adult child to step in smoothly. Mortgages and utilities are paid on time. Retirement accounts are handled correctly. Nursing home or assisted living paperwork gets signed promptly so care is not delayed. Family members spend their energy on visits and support instead of scrambling for court dates and legal authority.
When they fail, the consequences are expensive and emotional. A bank in Indiana might freeze access to accounts. A facility may refuse to admit your loved one or ask for a court-appointed guardian before they will move forward. Siblings can end up in conflict because they do not agree who should be in charge or what the document allows. The difference usually is not luck. It is whether the Power of Attorney was drafted and updated in a way that fits your situation, your family, and Indiana practice.
Because our work at Rice & Rice centers on elder law, long-term care, and estate planning, we see how Powers of Attorney perform in the real world, not just on paper. That experience shows that most POA problems are predictable and preventable, which is why taking the time to understand these pitfalls can save your family significant stress in the future.
Relying on Generic Forms Often Leaves Indiana Agents Powerless
One common failure point we see in Indiana is the generic form problem. A client walks in with a Power of Attorney printed from a national website or copied from a friend in another state. It may look official and even be notarized. Yet, when an adult child tries to use it at an Indiana bank or investment firm, staff hesitate or refuse because the language is vague or does not align with their internal policies.
Generic documents often miss key Indiana expectations. A durable financial Power of Attorney must clearly state that it remains effective if you become incapacitated. Some templates bury that language or omit it entirely. Others use broad phrases like “all powers allowed by law” without spelling out specific authorities that Indiana institutions look for, such as the power to make gifts, manage retirement accounts, or sign contracts related to long-term care.
There is also a practical side that legal forms alone do not capture. Banks and financial companies in Indiana are understandably cautious. If they cannot easily read and understand your POA, or if it does not look familiar to their legal team, they may send it for review, ask for additional affidavits, or decline to rely on it. That process can take days or weeks at exactly the wrong time. A document that is technically valid under Indiana law can still be functionally useless if third parties do not accept it.
Another blind spot with generic POAs is coordination. A one size fits all form that is not drafted with your other documents in mind can work against your will or trust. For example, if your estate plan uses a revocable trust, your Power of Attorney often needs to give the agent power to transfer assets into that trust or work with the trustee. If those powers are missing, your agent may not be able to carry out the strategy your plan depends on, especially for long-term care or tax planning.
In our free consultations at Rice & Rice, we review many existing POAs and often find that generic or out-of-state forms do not line up with how Indiana banks and care providers operate. Tailoring the document to Indiana law and to your specific plan is not about adding fancy legal language. It is about giving your agent clear, recognizable authority so institutions can say “yes” when it counts.
Choosing the Wrong Agent, Or Too Many Agents, Creates Family Gridlock
Even a well-drafted POA can fail if the wrong person is in charge. Many Indiana parents feel pressure to be fair and name all their children together as co-agents. On paper, this seems like a way to avoid hurt feelings. In practice, it often creates delay and conflict. Financial institutions may require every co-agent to sign every document, which slows simple tasks. If siblings disagree about a decision, such as whether to sell the house or move a parent into care, the stalemate can stop everything.
There is also a difference between trusting someone and expecting them to manage complex responsibilities. An agent under a financial Power of Attorney may need to understand account statements, talk with financial advisors, track bills, and keep records. For healthcare decisions, an agent may need to absorb medical information quickly and communicate calmly with doctors and family members. A child who is loving and honest but overwhelmed by paperwork or conflict may not be the right fit.
Availability matters as much as character. An adult child who lives several states away, travels constantly, or has their own health challenges may struggle to respond quickly when a crisis hits. In those cases, it can make sense to name that child as a backup and choose someone closer or more flexible as the first agent. Thinking through who can realistically show up, not just who you love equally, makes it more likely the POA will be used effectively.
Another frequent pitfall is overlooking successor agents. If the only person named in your Indiana POA dies, becomes ill, or declines to serve, there may be no one with valid authority. Families then often end up in probate court asking a judge to appoint a guardian. That process is public, can be costly, and may lead to someone you did not intend managing your affairs.
Because our practice is family-focused and grounded in long-term relationships, we spend time with clients talking through family roles and dynamics. Our goal is to help you choose agents and backups who can handle the responsibility, preserve relationships, and carry out your wishes, rather than simply listing names to keep the peace today and leaving future conflict to chance.
Vague Or Missing Powers Can Block Crucial Financial And Care Decisions
Another major failure point is the content of the powers themselves. Many standard POA forms rely on broad, sweeping language, such as giving the agent authority over all financial matters. That sounds comprehensive but often is not enough. In Indiana, financial institutions and care providers frequently look for specific powers spelled out in the document before they will allow an agent to take certain actions.
For example, long-term care planning and Medicaid planning often involves changing how assets are held, adjusting beneficiary designations, or making certain gifts within legal limits. If your POA does not clearly authorize your agent to make gifts, handle retirement accounts, or work with life insurance and annuities, the agent’s hands may be tied. They may see a planning opportunity that could protect more of your assets for a spouse or disabled child but be unable to carry it out.
Housing and care decisions can also be affected. Admissions offices for nursing homes or assisted living communities in Indiana will often review the POA before allowing an agent to sign admission agreements, financial responsibility forms, and care contracts. If the document is vague on contract authority or silent on residential and healthcare related powers, staff may insist on a court-appointed guardian instead. That delay can leave a patient in limbo at the hospital or rehab facility.
Overly broad language can create another problem. If a POA appears to give very wide powers without clear limits or context, institutions may be more nervous about possible abuse. They may hold the document for legal review or ask for additional assurances. Meanwhile, bills are not getting paid and decisions are stalled. The goal is not to restrict your agent so tightly that they cannot act, or to give such unlimited authority that everyone hesitates. It is to grant the specific powers they are likely to need, in clear terms, with a framework that matches your goals.
Because Rice & Rice focuses on elder law, asset protection, and long-term care, we pay close attention to these details. When we draft POAs, we talk with clients about whether they want to allow gifting, what role retirement accounts play in their plan, and how they feel about giving authority for major transactions. This does not guarantee a particular outcome with any bank or facility, but it significantly reduces the risk that your agent will be blocked from acting at a critical moment.
Springing Powers And Outdated POAs Often Fail At The Worst Moment
Timing is another area where Powers of Attorney can break down. Some documents in Indiana are drafted as springing POAs. This means the agent has no authority until a certain event occurs, usually a formal determination that you are incapacitated. In theory, this sounds like a safeguard. In practice, it can create delays and disputes about whether the trigger has been met.
To rely on a springing POA, banks or healthcare providers may demand written statements from one or more physicians, or ask for specific language about incapacity based on Indiana law. Family members may not agree on whether you are truly incapable of making your own decisions, especially if your condition fluctuates. While these debates play out, no one has clear authority to handle everyday tasks like paying the mortgage or securing a bed in a memory care unit.
Document age adds another layer of risk. It is common for someone to sign a POA in their 50s and never look at it again. Years later, an Indiana bank or title company is presented with a document that predates current statutes or internal policies. Even if the law does not automatically invalidate older POAs, institutions often treat very old documents with extra caution. They may insist on legal review or prefer more recent documents that reflect current standards.
Health changes, moves between states, and life events like divorce or death of a spouse can also make an older POA unreliable. The person you named as agent might no longer be the right choice, or even alive. Powers that seemed unnecessary in earlier years, such as authority to sign long-term care contracts, may become crucial as you age. Relying on an outdated document can be almost as risky as having none at all.
At Rice & Rice, we encourage clients to treat their estate plans, including POAs, as living tools. Through our educational workshops and ongoing relationships, we remind families to review and update documents after major changes and at reasonable intervals. Refreshing your POA so it reflects your current wishes and Indiana practice does not guarantee smooth sailing in every situation, but it greatly improves the chances that institutions will accept and follow it without unnecessary delay.
Ignoring How Your POA Fits With Your Indiana Estate Plan
A Power of Attorney does not stand alone. It is one piece of your broader plan for what happens if you become incapacitated and after you die. Ignoring how your POA interacts with your will, any trusts, and your beneficiary designations is another quiet pitfall that often shows up years later in the form of confusion and conflict.
During your lifetime, your financial POA is the main tool your agent uses to manage assets in your name if you cannot. Your will generally has no effect until after your death. If your POA instructs an agent to handle finances in a way that conflicts with the structure of your will, your family and advisors can end up pulling in different directions. For example, if the POA encourages selling a family home while you are alive, but your will assumes that home will be left to a particular child, both documents cannot be carried out exactly as written.
Trust based plans create additional coordination needs. Many Indiana families use revocable living trusts to avoid probate and streamline asset management. For those plans to work, assets often must be retitled into the trust or managed in coordination with the trustee. If your POA does not give your agent authority to fund the trust, work with the trustee, or manage trust-related property, important pieces of your plan may never be put in place, especially if incapacity happens before you complete all transfers yourself.
Beneficiary designations on retirement accounts, life insurance, and payable-on-death accounts also interact with POAs. An agent who is not clearly authorized to adjust those designations may be stuck watching outdated or inappropriate beneficiary choices play out, even if they no longer match your family situation or your current goals. On the other hand, if you do grant authority to change beneficiaries, you want that power shaped by clear guidance so it supports, rather than undermines, the rest of your plan.
Our approach at Rice & Rice is to view the POA as part of a coordinated Indiana estate and elder law plan. When we review or draft Powers of Attorney, we look at your will, any trusts, and key account designations to make sure they work together. The goal is consistency. Your agent, your personal representative under your will, and any trustee should be able to follow your documents without running into contradictions that invite disputes or court involvement.
How Working With An Indiana Elder Law Firm Helps You Avoid POA Pitfalls
Power of Attorney pitfalls in Indiana tend to fall into a few predictable categories. Generic or out-of-date forms that do not match Indiana practice. Agent choices based on fairness instead of capability and availability. Vague or missing powers that block important financial and care decisions. Timing issues created by springing documents or long-neglected forms. Poor coordination between the POA and the rest of the estate and long-term care plan.
Addressing these issues usually does not require exotic legal maneuvers. It requires someone who understands how Indiana families age, how banks and healthcare providers actually respond to POAs, and how Medicaid and long-term care planning work. In our work at Rice & Rice, we sit down with clients to talk through their family dynamics, financial picture, health concerns, and faith and value priorities. From there, we craft Powers of Attorney and related documents that fit those realities instead of relying on a one-page template.
Because we have focused on elder law and estate planning for more than 50 years and have guided over 12,000 families, we have seen how both strong and weak POAs play out. That experience helps us flag red flags you might not think about, such as co-agent arrangements that are likely to deadlock, or missing powers that could affect long-term care strategies. Our Martindale-Hubbell AV Preeminent Rating and A+ rating with the Better Business Bureau reflect the high ethical and professional standards we bring to these very personal planning decisions.
If you already have a Power of Attorney, this is a good time to ask whether it might contain some of the pitfalls described here. How old is it? Who did you name as agent and successor? Does it clearly grant the powers your family would need to manage your finances and care in Indiana today? If you are not sure, you do not have to guess. We offer free consultations where you can bring in your existing documents, ask questions, and learn what updates, if any, make sense for your situation.
Thoughtful planning now can mean that, if the day comes when you cannot manage things yourself, your family has clear, usable authority instead of an unpleasant surprise at the bank or hospital. To talk with our team at Rice & Rice about reviewing or creating a Power of Attorney that fits your Indiana estate and long-term care plan, call us to schedule your free consultation.