You have started putting your estate plan together, but you find it hard to decide on a power of attorney. Your decision puts a single person in charge of your health and your finances should you ever become incapacitated. How do you decide who should have such influence over your life?
Kiplinger may have the information you need. Learn how to complete this aspect of estate planning with full confidence.
Think about your candidates’ financial habits
When deciding on your financial power of attorney, think about the person’s current financial health and habits. Someone struggling financially or who makes poor decisions about money may not be the best person to put in charge of your finances.
Consider the person’s age and mental faculties
Age and mental capacity are two additional factors to consider. Choosing a power of attorney close to your age could result in that person becoming physically ill or mentally incapacitated him or herself when you need that person to step up. On a related note, your power of attorney should be someone known for making sound, well-informed decisions.
Let the person known about your decision
Once you decide on a power of attorney, let that person know about your decision and why you chose him or her specifically. Let the individual know what being a power of attorney involves, and be sure to gain the person’s express consent to act in this specific role.
Take your time when choosing a power of attorney. This person may one day hold your physical and financial lives in her or his hands.