Choosing a power of attorney is a key component of creating a comprehensive estate plan. The person you select may be responsible for making financial, legal or healthcare decisions on your behalf if you become unable to do so yourself.
Selecting the right individual requires careful thought. Trust, reliability, availability and family dynamics can all influence whether someone is well suited for this role. The right choice can help ensure your wishes are respected and your affairs are managed according to your intentions.
In this guide, we’ll discuss what to look for in a power of attorney and how to make a decision that provides confidence and peace of mind.
Understanding the Role of a Power of Attorney
Before choosing an agent, it helps to understand what that person may be asked to do. A power of attorney gives someone you trust legal authority to act on your behalf in specific situations.
The scope of that authority depends on the document. A financial power of attorney may allow your agent to pay bills, manage accounts or handle property matters. A healthcare power of attorney may allow your agent to make medical decisions if you are unable to communicate your wishes.
Understanding these responsibilities can help you choose someone who is prepared for the role and capable of carrying out your wishes.
Factors to Consider When Selecting a Power of Attorney
Choosing a power of attorney is a deeply personal decision. The right person should be someone you trust to act in your best interests and carry out your wishes when it matters most. When evaluating potential agents, consider the following qualities:
- Trustworthiness: This person should be willing to follow your wishes, even if they would make different decisions themselves.
- Reliability: Your agent should be dependable and capable of handling important responsibilities when needed.
- Emotional Stability: Difficult decisions may arise during stressful situations, making a calm and level-headed approach important.
- Financial Responsibility: If the agent will manage financial matters, they should be comfortable handling money and making sound financial decisions.
- Availability: Consider whether the person is likely to be accessible and able to act when necessary.
Who Should Be My Power of Attorney?
There is no universal answer when deciding who should be my power of attorney. The right choice depends entirely on your unique family dynamics, personal relationships, and long-term planning goals.
For many people, the best person to be power of attorney is someone who is deeply familiar with their values and daily life. This could be a partner, a sibling, or a lifelong friend who understands your vision for your family.
As you explore your options, remember that different family structures may require unique legal planning.
Can a Spouse Be a Power of Attorney?
Yes. For many people, a spouse is a natural choice for a power of attorney because they are often the person most familiar with their finances, healthcare preferences and long-term goals.
Naming your spouse can help ensure someone you trust is able to make important decisions on your behalf if you become unable to do so. In many cases, a spouse is already involved in day-to-day financial and household matters, making the transition easier if they need to step into this role.
Can an Adult Child Serve as a Power of Attorney?
Yes. An adult child can serve as your power of attorney as long as they meet your state’s legal requirements, which typically include being at least 18 years old.
Age alone does not determine whether someone is the right choice. Before naming an adult child, consider their maturity, reliability, financial responsibility and ability to make difficult decisions under pressure.
Can More Than One Person Serve as Power of Attorney?
You can name more than one person to serve as your power of attorney, but it requires careful coordination. Co-agents can be structured to act together (jointly) or independently (severally).
Naming co-agents can share the emotional burden of decision-making, but it can also lead to delays if they disagree. An alternative approach is to divide responsibilities by strengths.
For example, you might choose one sibling who works in finance to manage your estate, and another who works in healthcare to oversee medical decisions. This division ensures that each aspect of your future is handled by the person best suited for that role.
Can You Name a Backup Power of Attorney?
It is highly recommended to name at least one backup, or successor, power of attorney. This individual can step in if your primary agent is unable or unwilling to serve.
Without a designated successor agent, your loved ones may need to seek court involvement to establish legal authority to act on your behalf. Naming an alternate agent helps ensure your wishes can still be carried out and provides continuity if circumstances change.
Talk With Your Potential Power of Attorney Before Naming Them
Before signing any legal documents, have an honest conversation with the person you plan to name as your agent. This discussion helps ensure they understand the role and are willing to accept the responsibility.
Take time to explain the decisions they may be asked to make on your behalf and discuss your healthcare preferences, financial priorities and personal values. Providing this guidance in advance can help your agent act with confidence and make decisions that align with your wishes.
Mistakes to Avoid When Choosing a Power of Attorney
Even well-intentioned decisions can create challenges if the wrong person is chosen. Some of the most common mistakes include:
- Choosing Someone Out of Obligation A spouse, child or close relative is not automatically the best choice. Focus on who is most capable of carrying out your wishes.
- Overlooking the Skills Required for the Role: Your agent may need to manage finances, communicate with healthcare providers or make difficult decisions under pressure. Choose someone who is equipped to handle those responsibilities.
- Failing to Discuss the Role Beforehand: Make sure your chosen agent understands the responsibilities involved and is willing to serve if needed.
- Neglecting to Name a Backup Agent: If your primary agent is unable or unwilling to act, a successor agent can help ensure your plan remains effective.
Avoiding these mistakes can help you choose a power of attorney who is prepared to act in your best interests and carry out your wishes when the time comes.
Review Your Choice as Life Changes
Choosing a power of attorney is not a one-time decision. As your life changes, it is important to revisit your selection and confirm that your chosen agent is still the right person for the role.
Consider reviewing your power of attorney after major life events such as marriage, divorce, relocation, significant changes in health or the addition of new family members. Changes in your relationship with your agent, their availability or their ability to serve may also warrant an update.
Regularly reviewing your estate plan can help ensure your power of attorney continues to reflect your wishes, circumstances and long-term goals.
Make This Important Decision With Confidence
At Foster + Bloom, we help individuals and families create personalized estate plans that reflect their unique circumstances and long-term goals. Whether you are selecting a power of attorney for the first time or updating an existing plan, our experienced attorneys can help you make informed decisions with confidence.