Choosing Your Power of Attorney Agent – Important Things to Consider
Choosing Your Power of Attorney Agent Important Things to Consider
The Power of Attorney agent you choose will have complete legal authority to make decisions about your affairs. For this reason, it is crucial that you choose someone who is trustworthy and keeps your best interests in mind. Here are some common sense guidelines to follow when choosing your Power of Attorney agent:
Pick someone who you really trust. They can be either a close relative or someone you have known for a long time. Don't trust your affairs to anyone who you think might not follow your wishes.
Consider the cost. If you choose an attorney or accountant as your agent, there is usually a fee. Family members will usually perform agent duties for free.
Choose someone with financial smarts. Your financial affairs will probably be better managed by someone who manages their own financial affairs carefully and effectively.
Choose someone who agrees to do the job. Acting as your Power of Attorney agent is a big responsibility, and if the agent does not agree and understand the importance of the task, it might not be done well or the agent may back out later. Discuss the issue with your potential agent first and express your values and wishes with regard to how your affairs should be handled. This also gives the agent an opportunity to consider and communicate to you whether he or she is willing and able to handle the responsibilities.
Note: a Power of Attorney agent, sometimes referred to as an Attorney-in-Fact, does not have to be an attorney. The agent can be any adult that you trust and who is competent to handle your affairs. An agent can also be someone other than an individual, including a bank.
If you ever doubt your agents trustworthiness or if a conflict of interest arises, you should terminate the agents authority to act for you by using a Revocation of Power of Attorney document. As a follow up, you should also contact other parties who may have been relying on the authority of your agent such as banks. You may also appoint an alternate agent would become your primary agent if your first choice can not perform the duties when the time arrives. It should also be noted that a separate Power of Attorney must be created for each person. A "joint" Power of Attorney is not valid.