Tips for Choosing Who Will Act as Power of Attorney

 Posted on December 12,2022 in Estate Planning

Most people wrongly assume that drafting a will is all there is to estate planning. However, there are several other estate planning instruments that can be greatly beneficial in the event of incapacitation or death. A power of attorney is one such instrument. A power of attorney is a document that grants someone else the authority to handle your financial and medical affairs in the event of your incapacitation. If you suddenly became extremely ill, who would you want to speak on your behalf? Answering this question is rarely easy, so it is important to weigh your options and choose carefully.

Power of Attorney for Finances

Appointing a person as power of attorney for finances authorizes them to make financial decisions on your behalf. This could mean anything from writing checks, to accessing bank accounts and making investments. When selecting someone to be your agent in this capacity, consider the person’s trustworthiness, ability to manage money responsibly, and willingness to act in your best interests. Choose an individual who will be able to competently manage your finances, pay bills on time, make responsible decisions regarding investments, and communicate with financial institutions on your behalf if needed.

Power of Attorney for Healthcare

A power of attorney for healthcare grants someone the authority to make medical decisions on your behalf in the event that you become incapacitated. When selecting an agent for this purpose, choose someone who is knowledgeable about you and understands your wishes regarding end-of-life care. It is important to select a person who will respect your wishes even if they conflict with their own personal beliefs. It may also be useful to select a person who is familiar with the healthcare system, so they can make decisions quickly in an emergency.

In either case, it is important to discuss your wishes with the person you choose as your agent and ensure that you both understand what will be expected of them should circumstances require them to act. You should also make sure that your agent understands the limits of their authority and how you want them to prioritize decisions. Furthermore, it is important to keep your power of attorney documents updated in the event that you wish to change or revoke any provisions.

Contact our DuPage County Estate Planning Lawyer

Setting up a power of attorney is one of the smartest things you can do to prepare for the future. For sound legal guidance regarding all of your estate planning needs, contact our Wheaton estate planning attorneys at Stock, Carlson & Asso. LLC. Call 630-665-2500 for an initial consultation to get started.

Source:

https://www.investopedia.com/terms/p/powerofattorney.asp