Choosing a Power of Attorney can seem like a daunting task, but it is a crucial step in planning for the future. Your Power of Attorney (POA) will have the power to legally handle your financial and legal affairs in the event that you become incapacitated or are no longer able to make decisions for yourself. When you choose your Power of Attorney, there are a couple of things you should keep in mind.
1.) If you own your own business or have substantial business interests your Power of Attorney will become responsible for, you may want to consider choosing a person that has a thorough understanding of your business or business interests.
2.) If you have someone in mind you want to name as your POA, it might be beneficial to have a conversation with that person to discuss what their responsibilities would be and the depth of their financial and legal knowledge.
In addition to the above considerations, there are also certain characteristics and qualifications that your Power of Attorney should possess. When considering potential POA’s, make sure the individual possesses most, if not all, of these qualifications.
Your Power of Attorney should be someone who:
- Will act in your best financial and legal interest.
- You trust and who understands your values.
- Has legal or financial experience.
- Has a comprehensive understanding of their duties.
- Will commit to taking those duties seriously.
- Is able to collaborate with attorneys and accountants.
Knowing how to choose your Power of Attorney starts with knowing what your POA’s responsibilities will be. Before making your decision, sit down with your lawyer to discuss the potential duties of your Power of Attorney. Once you’ve outlined these duties, you can begin the decision-making process.