Tips for Choosing a Power of Attorney

Choosing a power of attorney (“POA”) is a critical part of estate planning. A POA is a legal document that grants someone you trust the authority to make decisions on your behalf if you are unable to do so. There are two main types of POAs: financial and health care. Each role is unique, and while the same person you have in mind may work well for both roles, it is okay to have different persons with different skill sets and temperaments serving for each type of POA. Here are some tips for selecting the right person for each role:

Financial Power of Attorney

A Financial Power of Attorney is responsible for managing your financial affairs if you become incapacitated. This includes paying bills, managing investments, and handling other financial transactions. When choosing a financial POA, it’s important to select someone who is:

• Financially Sound: The person should have a good understanding of financial matters and be capable of managing money responsibly. You want to avoid a person who is in a crisis or near crisis financial situation in which they see your money as their ticket out of their current situation.

• Trustworthy: This should go without saying, but this person will have access to your financial assets, so it is essential that you trust them implicitly.

• Asks for Help: They should know how to reach out to professional advisors, such as accountants or financial planners, when needed to ensure your finances are managed correctly. Do not pick a stubborn or obstinate person who is unwilling to ask for help when the need arises—from professional experience, this path does not end well for anyone.

Health Care Power of Attorney

A Health Care Power of Attorney, also known as a medical POA, is responsible for making medical decisions on your behalf if you become incapacitated. This includes decisions about treatments, surgeries, and other medical interventions. When selecting a health care POA, consider someone who is:

• Patient Advocate: Choose someone who will be a compassionate advocate for your health care needs. This person should not be afraid to ask questions of medical providers or push back against decisions they believe are not in your best interest.
  
• Assertive: You don’t want a passive person for this role. The individual should be confident in making decisions and communicating your wishes.
  
• Knowledgeable (Optional): While medical knowledge or expertise is a plus, it is not a requirement. Certainly, that child or other family member who has formal training as a doctor or nurse may be a great choice, but practical experience in serving as a patient advocate for a parent, grandparent, or spouse qualifies, as well. The most important qualities are advocacy and assertiveness.

Final Thoughts

Choosing the right person for both financial and health care POAs is essential for ensuring your affairs are managed according to your wishes if you are unable to do so yourself. Take the time to carefully consider the attributes and capabilities of potential candidates, and I strongly encourage you to discuss your expectations and wishes with them in advance. By selecting the right individuals, you can have peace of mind knowing that your financial and health care decisions will be in good hands.