Powers of attorney can fulfill several important estate planning roles. People can name someone they trust to run their business and pay their bills in an emergency. They can designate a medical agent in case they become incapacitated. They can even draft durable powers of attorney to appoint someone trustworthy to serve as their long-term guardian if they become permanently incapacitated due to extreme medical challenges or advanced age.
Powers of attorney are some of the most important inclusions in estate plans. People need to consider how they could become vulnerable and the support that others can provide for them in a difficult situation. They also have to make sure that they empower the right people to act as their agents or attorneys-in-fact. An agent has significant authority when powers of attorney take effect.
How can people choose someone capable of managing that crucial role in an emergency or during long-term incapacitation?
Consider availability and proximity
The right individual to serve as an agent largely depends on whether they can be available in an emergency scenario. Where they live, how demanding their career is and even their family circumstances can influence whether or not they are capable of acting as an attorney-in-fact. Choosing those who live nearby and who are readily available is typically in the best interest of those concerned about being vulnerable as they age or after an emergency.
Review the behavior and beliefs of candidates
There are those who might abuse power of attorney for selfish purposes when given control over another individual’s daily life or finances. Therefore, it is important for those drafting powers of attorney to evaluate the regular conduct of the candidates they consider. Statements about their personal values and beliefs can also provide an indicator of how they might behave when given authority over another person’s day-to-day life.
Discuss any potential complications
Before naming someone as an agent or attorney-in-fact, the principal drafting the documents should discuss that decision with the person they want to empower. People may not have gone public with health concerns, for example, or a pending divorce. Factors including their future medical status can influence their ability to act as an effective agent should an emergency arise.
Taking the time to select the right candidate can help people ensure that powers of attorney protect the principal when they need help the most. The selection of an agent requires careful consideration and may make occasional estate planning revisions necessary.