Creating a Power of Attorney is an important part of planning for the future. But preparing the document is only one part of the process. You also need to decide who you trust to act on your behalf if you’re unable to manage certain matters yourself.

For many people, the natural instinct is to choose a spouse, an adult child, or another close relative. While that person may ultimately be the right choice, the decision should be based on more than your relationship alone.

What Does Your Agent Do?

Under a Power of Attorney, the person you appoint is commonly referred to as your agent. Depending on the authority granted in the document, your agent may be responsible for handling important financial and legal matters on your behalf.

That can include managing bank accounts, paying bills, dealing with property, handling certain transactions, and taking other actions permitted by the document.

It’s a position of significant responsibility, so choosing someone you trust completely is essential.

What Qualities Should You Look For?

Trustworthiness should be at the top of the list. Your agent may have access to sensitive financial information and significant authority over your affairs. You need to feel confident that they will always act with your best interests in mind.

Reliability is equally important. Someone may be trustworthy but disorganized, difficult to reach, or uncomfortable handling paperwork. Your agent should be someone who can follow through on responsibilities and keep accurate records when necessary.

You should also consider the person’s financial responsibility and judgment. They do not necessarily need to be a financial expert, but they should be comfortable dealing with financial matters and understand the importance of seeking professional guidance when needed.

Finally, think about whether the person can make difficult decisions under pressure. Family situations can become emotional, particularly during an illness or period of incapacity. Your agent may need to remain calm, communicate with family members and professionals, and make decisions based on your wishes rather than pressure from others.

Should You Name an Alternate?

Naming an alternate agent can provide an additional layer of protection.

Your first choice may be perfectly capable of serving today, but circumstances can change. They could become ill, move away, experience their own personal difficulties, or simply be unable or unwilling to serve when the time comes.

Choosing an alternate means there is someone else you trust who can step into the role if necessary.

Common Mistakes to Avoid

One common mistake is automatically naming the oldest child or closest relative without considering whether they are genuinely suited to the responsibility.

Another is choosing someone simply because you are worried about hurting another family member’s feelings. Your Power of Attorney is intended to protect you. The decision should be based on who is best equipped to carry out your wishes responsibly.

It is also important to review your choice periodically. Relationships and circumstances change, and the person who was right for the role ten years ago may not necessarily be the right choice today.

Have the Conversation Beforehand

Before naming someone as your agent, talk to them.

Explain why you have chosen them, what the role could involve, and make sure they are comfortable accepting the responsibility. This conversation also gives you an opportunity to discuss your priorities and wishes before a situation arises where they may need to act.

A Power of Attorney can be an invaluable part of a comprehensive estate plan, but the person you choose matters just as much as the document itself.

Lee Carr II and the team at Carr Law Group can help you understand your options, prepare the appropriate documents, and make informed decisions about who should be trusted to act on your behalf. Planning ahead today can provide greater clarity and peace of mind for you and your family in the future.