Choosing the right person to serve as your Power of Attorney (POA) is a crucial decision, as this individual will have the authority to make financial, legal, and medical decisions on your behalf if you become incapacitated. Here are some key factors to consider when selecting a Power of Attorney:
1. Trustworthiness
- Integrity: The person you appoint should be someone you trust completely, as they will have significant control over your financial and personal affairs.
- Honesty: Choose someone who is known for their honesty and reliability, as they will be responsible for handling important decisions and transactions.
2. Competence and Decision-Making Skills
- Judgment: The person should have good judgment and be capable of making sound decisions in your best interest, especially under potentially stressful circumstances.
- Problem-Solving Ability: Look for someone who is skilled at problem-solving and can handle complex situations that may arise.
3. Financial Responsibility
- Financial Acumen: While not required to be a financial expert, the person should have a basic understanding of financial matters and be able to manage assets and obligations responsibly.
- Handling Finances: Ensure they have a history of managing their own finances well, as this can be indicative of their ability to handle yours.
4. Availability and Proximity
- Time Commitment: The Power of Attorney may need to manage your affairs frequently, so the person should be available and willing to dedicate the necessary time.
- Location: Ideally, the person should be geographically close to you, especially if they need to handle local matters or attend meetings on your behalf. However, in some cases, a trusted individual who lives farther away might still be suitable.
5. Communication Skills
- Effective Communication: The person should be able to communicate effectively with healthcare providers, financial institutions, and other relevant parties.
- Handling Disputes: Good communication skills are also important for managing any potential disputes that might arise among family members or other interested parties.
6. Understanding of Your Wishes
- Familiarity with Preferences: The person should have a clear understanding of your values, preferences, and wishes regarding medical and financial decisions.
- Respect for Your Wishes: Ensure they are willing to act in accordance with your wishes and not their own preferences.
7. Family Dynamics
- Neutrality: Consider how the choice of Power of Attorney might affect family dynamics. Sometimes, choosing a neutral third party, such as a family friend or professional, can help avoid conflicts.
- Avoiding Conflict: If appointing a family member, choose someone who is respected by other family members to minimize potential conflicts.
8. Health and Age
- Physical and Mental Health: Ensure the person is in good health and mentally capable of performing the duties of a Power of Attorney.
- Longevity: Consider whether the person is likely to be available and capable of serving throughout the potential duration of your incapacity.
9. Legal and Ethical Considerations
- Ethical Standards: The person should adhere to high ethical standards and avoid any actions that could be perceived as self-serving or unethical.
- State Laws: Be aware of any legal requirements in your state regarding who can serve as a Power of Attorney. Some states may have specific restrictions or qualifications.
10. Backup Choices
- Alternate POAs: It’s wise to appoint an alternate Power of Attorney in case your primary choice is unable or unwilling to serve when needed.
- Successor POA: Consider designating a successor POA who can step in if the primary and alternate POAs are unable to fulfill their duties.
11. Professional Option
- Financial Advisor or Attorney: For more complex estates or situations, you might consider appointing a professional, such as an attorney or financial advisor, as your Power of Attorney. This can provide expertise and objectivity but may involve additional costs.
Conclusion:
Choosing your Power of Attorney is a significant decision that requires careful consideration of the person’s trustworthiness, decision-making skills, financial responsibility, and understanding of your wishes. This individual will play a vital role in managing your affairs if you become incapacitated, so it’s important to select someone who can fulfill these responsibilities effectively and with integrity. Discussing your choice with the person you are considering and consulting with an estate planning attorney can help ensure that your selection is appropriate and that your POA document is properly drafted to meet your needs.