When planning for the future, choosing someone to handle your financial affairs when you cannot is a huge decision. The person you select to become a financial power of attorney (POA) representing your estate will have significant responsibilities.
This is a task you must never take lightly. The following guidelines will help facilitate the selection process.
Understanding the role
Begin by learning what the position entails. A financial POA will handle all your finances, including paying bills, managing investments and making financial decisions on your behalf. Plenty of online resources can provide insight into what this means.
Looking for key qualities
Trustworthiness stands above all other desirable traits. This person will have access to sensitive financial information and be able to make moves affecting your assets. Therefore, you want someone who will act in your best interest no matter the situation. Seek candidates who are reliable and financially savvy.
Considering family dynamics
While relatives are often the first choice, recognize that family members can be sensitive. Selecting one over another could lead to conflict. Assess the connections between kin and contemplate how your choice might impact those relationships. A close friend or trusted advisor might be a better option.
Discussing the role
Before offering the position, chat with the candidate. Explain what the job would entail and why you believe that person is a solid match. Try to figure out whether this individual truly comprehends the gravity of the matter.
Making the decision
After mulling over each variable, determine which nominee best suits the position. Choose the one you feel will best manage your financial affairs with integrity and wisdom.
Take the time to weigh all factors and communicate openly with everyone regarding your thinking. A steady approach will help ensure that your finances remain in good hands should you ever need someone to step in and manage them.
