An estate plan helps prevent conflict among family members when a testator dies. Documents can provide practical support for children and others who are vulnerable. Additionally, estate plans can protect people when they are personally vulnerable.
The documents that a person puts in place while they are healthy can protect them if they ever experience a debilitating medical emergency. Powers of attorney (POA) allow those who are healthy to designate a person they trust to act as their agent or attorney-in-fact. If they ever become incapacitated, possibly due to a stroke or a car crash that puts them in a coma, the agent they selected previously can manage their finances or make medical choices on their behalf.
Selecting the right person is critical to the protection of those establishing a POA. How do principals choose the right person(s) to manage their affairs if they become incapacitated?
Capability and availability are critical
There are two main categories of considerations that may influence the selection of an agent or attorney-in-fact. The first is the availability of the parties that the principal considers. Where someone lives, how demanding their career is and even the age of their children can influence their ability to serve as another person’s representative in an emergency situation.
Their health and age are also important factors to consider. People who are the same age or older than person assigning them to have this responsibility may experience their own medical challenges that could leave them incapable of assuming that responsibility in an emergency situation. Finally, their living arrangements influence the best options, as those who live far from the principal may not be able to be present on demand when an emergency arises.
The second set of considerations relates to an individual’s capabilities. Can they manage stress well? Are they organized enough to handle complex financial matters? Are they honest enough to control another person’s resources without feeling tempted to misappropriate anything?
In many cases, those designating others to have authority under a POA may want to create a list of several potential candidates. They can then discuss the matter with each of those parties to see who is willing to accept that authority. They can also potentially name an alternate in their documents. The person selected to act as agent or attorney-in-fact can have a profound impact on the principal’s health and finances if their support is ever necessary.
Having experienced estate planning guidance can make it easier for people to cut through personal bias and family drama to select the right candidate to act as their agent. Powers of attorney are critical inclusions in estate plans and require careful consideration for the protection of the principal.