Choosing Your Power of Attorney: Key Considerations

Understanding the Role of Power of Attorney

A POA (Power of Attorney) is a legal document that gives one person (the agent or attorney-in-fact) the power to act for another person (the principal). The agent can have broad legal authority or limited authority to make legal decisions about the principal’s property, finances, or medical care.

Trustworthiness

The person you appoint as your POA will have considerable control over your affairs. Hence, it’s crucial that this person is someone you trust implicitly. They should demonstrate honesty, integrity, and a strong understanding of their duties and your wishes.

Financial Savvy

If you’re granting financial powers, the person should have some financial acumen. They need not be a financial expert, but they should understand basic financial concepts like budgeting, investment, and tax considerations.

Location

The person you choose as your power of attorney should ideally live close to you. They may need to handle real estate transactions, visit banks, and make medical decisions, activities that require their physical presence.

Willingness and Ability to Serve

Being a POA can be time-consuming and stressful, especially when it involves making healthcare decisions. Ensure the person you choose is willing and able to undertake this responsibility.

Reliability and Organizational Skills

Your POA should be someone who is reliable and can keep your affairs organized. They should be able to keep accurate records and maintain the documentation related to your assets and care.

Harmony with Family and Loved Ones

The person you choose should be someone who can communicate effectively with your family members and loved ones. If disputes arise, this person will need to navigate the tensions and make decisions that uphold your best interests.

Consider Appointing Co-agents or Successors

In some cases, appointing two co-agents can provide an extra layer of protection, as they’ll keep each other in check. Alternatively, you could appoint a successor POA, who will take over if your first choice can’t or won’t serve.

Finally

Choosing your power of attorney is a significant decision. By considering the factors above, you can select someone who will respect your wishes and act in your best interest. Keep in mind, the laws regarding power of attorney vary by location, so it’s wise to consult with a legal professional to understand the implications fully.