There are many reasons why people may want to draft powers of attorney. A college student leaving home for school may want to empower a family member who lives nearby to handle their affairs in an emergency. Those dealing with chronic or progressive medical conditions may also recognize that they may eventually rely on others for support. Some people even draft powers of attorney as they prepare for retirement to avoid involuntary guardianship.
When a person grants another person authority during a period of incapacitation, it means they give them control over medical care and/or financial matters. Some people may abuse such authority. What steps can people take that will help them select the right person to act as their agent or attorney-in-fact when drafting a power of attorney?
1. Start with a broad list
Choosing the right agent or attorney in fact often requires lengthy consideration. The process is most effective when people consider an assortment of different candidates rather than automatically selecting their closest family member.
Creating a list of a half dozen or more parties who could be capable of handling medical and financial matters during an emergency can help the principal drafting the document more effectively consider their options.
2. Identify red flags early
There are certain characteristics that are beneficial but not necessary for an agent to possess. Lack of connections to close family members or estate beneficiaries can be helpful in some cases but may not be a realistic standard in others.
Other characteristics are crucial and non-negotiable in most cases. An agent or attorney in fact needs to be reliable and trustworthy. They need to be responsible enough to manage complicated financial and medical matters on top of their day-to-day life. Proximity to the principal is also important, as those who are not physically nearby may have a difficult time showing up in an emergency.
3. Discuss the choice with top candidates
Willingness to take on responsibility in an emergency is another key consideration. Someone who is perfectly qualified may believe they are too busy to act as an agent in the event of an emergency.
People need time to contemplate the role and accept on their own behalf. Otherwise, the principal drafting the documents risks having their agent or attorney-in-fact refuse to step up when an emergency occurs.
Selecting the right agent or attorney in fact is an important part of the estate planning process. Powers of attorney are most effective when people are careful about selecting an appropriate agent and updating their documents as their relationships and needs change.