Deciding who will handle your affairs if you become incapacitated is one of the most important decisions you’ll ever make. The agent (also known as your attorney-in-fact) you choose in your power of attorney (POA) document will be entrusted with significant responsibility. This role should not be taken lightly. Depending on the type of POA the agent may be managing your finances, making healthcare decisions on your behalf, and ensuring your wishes are carried out. In this blog, I will discuss some of the criteria I think you should consider when choosing an agent.

When I work with clients on estate planning, I always emphasize the gravity of the POA decision. The POA document is often overlooked or under-appreciated in the estate planning process. Creating a POA isn’t just a legal formality – it’s about selecting someone you deeply trust to act in your best interests, even in the most challenging of circumstances.

So how do you go about choosing the right person for these critical roles? I am going to discuss two different types of power of attorney documents. Some factors apply to any type of power of attorney, while other factors will apply to a specific type of agent.

 

Factors to Consider When Choosing an Agent for Any Type of Power of Attorney

Above all else, your agent must be someone of the utmost honesty and integrity. They will be privy to sensitive information, and you need to have complete confidence that they will make decisions aligned with your values, interests, and wishes, not their own self-interest.

Being an agent requires a significant time commitment, especially if you become seriously ill or incapacitated. You need someone who is willing and able to devote the necessary attention to managing your affairs, whether that’s paying bills, communicating with doctors, or representing your wishes.

Geographic proximity is something to consider. If your agent lives far away, it may be more difficult for them to quickly respond to issues that arise and fulfill their duties. Choosing someone local, or at least within your region, can be beneficial.

For many, naming a close family member as an agent is the natural choice. Be mindful of any family dynamics or interpersonal conflicts that could complicate the process. In some cases, an objective third party may be a better option in some cases. There are public and private fiduciaries that can act as an agent for you.

Consider the age and health of your potential agent. If they are elderly or have health issues, they may not be in a position to act on your behalf when needed. It’s important to choose someone who is likely to be able to fulfill their responsibilities for the duration of your POA.

Ultimately, the “right” agent for your POA is the person you trust implicitly to honor your wishes and act in your best interests, no matter the circumstances. It’s a weighty responsibility but choosing carefully will give you invaluable peace of mind.

 

Choosing an Agent specifically for your “General Power of Attorney”

A general power of attorney is used to appoint an agent to handle financial decisions and assets, granting them authority to manage various financial matters on your behalf. Therefore, it’s essential to choose someone with a good understanding of finances who is comfortable handling money and assets. If your agent lacks financial knowledge, consider providing them with resources or support, as they may also be responsible for overseeing complex matters like tax filings, investment management, selling real estate, and debt payments.

Many of my clients find themselves in the position of managing a parent’s or loved one’s finances, often unexpectedly. In some cases, this responsibility is temporary, but in many instances, it becomes permanent due to conditions such as dementia, Alzheimer’s, or other forms of incapacity. Understanding the legal and financial implications of stepping into this role is crucial to ensuring compliance with fiduciary duties and protecting the interests of the incapacitated individual.

 

Choosing an Agent specifically for your “Healthcare Power of Attorney” 

When it comes to healthcare decisions, having a trusted advocate by your side is crucial. Appointing a healthcare agent through a healthcare power of attorney (HCPOA) ensures that your medical wishes are respected and carried out when you are unable to communicate them yourself. This decision requires careful consideration, as your healthcare agent will be responsible for making potentially life-altering decisions on your behalf. This may be the same person named in the general power of attorney, or it may be someone different.

Healthcare decisions can be incredibly stressful, especially during emergencies or serious health crises. Your agent should possess the emotional strength and composure to make tough decisions under pressure. Consider whether the individual can remain calm and focused during difficult times, as their ability to handle stress will significantly impact their effectiveness as your advocate.

Effective communication is vital for a healthcare agent. They must be able to articulate your wishes clearly to medical professionals and engage in discussions with family members. Choose someone who is comfortable expressing your preferences and advocating for you, even in challenging conversations.

I had a client who was appointed as the agent under his brother’s healthcare power of attorney (HCPOA). Following a car accident, the brother fell into a coma and remained unresponsive for over three months. During this challenging period, my client faced a significant burden of responsibility, as he was tasked with making numerous critical decisions on behalf of his brother. These decisions were often difficult and emotionally fraught, requiring him to navigate complex medical situations while adhering to his brother’s wishes and best interests.

It is Best to Have Two or More Options

Once you have decided on an agent for your general POA and one for the HCPOA, you should also consider a backup agent for each. It’s wise to name a successor or backup agent in case your primary agent is unable or unwilling to serve when the time comes. This ensures that your affairs will be managed without interruption. Having a backup or two provides an additional layer of security and peace of mind.

If you have any questions or would like guidance on the selection process for your POA, I’m here to help. Just click below to schedule a consultation.