It's common for aging parent to grant power of attorney

Q. We will be listing my mom's house for sale within the next couple weeks. Mom has some memory and dementia issues, though much of the time she understands where she is at and usually has no problems recognizing family and friends. We are concerned, though, that at some critical point in time, she will not be able do what is required. A friend suggested I get a power of attorney.

Can you tell me what is involved and if there is a cost involved?

A. A power of attorney grants power to an individual (known as the agent) to act on behalf of another individual (known as the principal). The power can be general, essentially allowing the agent to take virtually any action on behalf of the principal. The power may also be restricted to certain areas, such as transactions involving real estate or banking transactions, or be restricted to a time period. A separate form, known as a health care power of attorney, addresses issues regarding the health care decisions of the principal.

Given the situation you describe, I believe it would be wise to have mom execute a power of attorney, granting you or perhaps another family member the power to act on her behalf. Be aware that she must be deemed competent to execute such a document at the time it is signed by her. The power of attorney must be witnessed and notarized.

Once properly executed, in the event mom is unable to sign documents or perform any other duty required of her in the transaction, the agent could legally step in and perform the necessary action. Finally, be aware a power of attorney is only viable during the life of the principal.

In regards to cost, the statutory forms are available online and some folks handle this themselves. There are, however, strict requirements in regards to proper execution and if a statutory requirement is not complied with, the power of attorney will be ineffective. Most attorneys will perform this service for a fairly nominal fee.

Q. I lease a small space in a strip mall. The lease calls for me to pay a base rent plus my share of the real estate tax, common area maintenance and insurance.

The first year I was here, the additional costs were in line with what was represented to me when I leased the property. I just received a letter from the management company for the second year and these additional costs have skyrocketed. It is to the point I don't believe I will be able to afford to stay here. Do I have any recourse in this situation?

A. First, read the terms of your lease to determine if there are any provisions that may assist you. Most leases, however, are heavily favored toward the owner, so it's not likely you will find help there.

You are entitled to an accounting, which will indicate the gross amount of these costs and how they were allocated among the tenants. Compare the accounting with the first year numbers to determine where the large increase(s) occurred. I am not aware of your location, but if your property was reassessed recently, that may have contributed to a significant increase in the real estate tax bill. An insurance claim by the owner may have resulted in a jump in the insurance bill. Pay close attention to the maintenance and administrative costs. This is an area where owners will sometimes attempt to pad their profits.

In the event you discover something that doesn't seem right, raise it with the management company. Force them to substantiate these large increases.

• Send your questions to attorney Tom Resnick, 345 N. Quentin Road, Palatine, IL 60067, by email to tdr100@hotmail.com or call (847) 359-8983.