Most people think that they will always be able to make decisions for themselves, but that’s not always how life works. All adults should think carefully about who will manage their affairs if they’re unable to do so themselves. This person should be given a power of attorney designation.
A power of attorney designation gives the person you name the ability to make decisions on your behalf if you become incapacitated. The powers they can oversee are financial and medical. You can have the same person named to both of those, or you can name a different person for each one.
Understand their responsibilities
Before you can decide who to name as the power of attorney for each of those areas, you need to understand what responsibilities they will have. The financial power of attorney will be able to pay your bills, manage your financial accounts and take care of your assets. They can buy or sell property or assets for you.
The healthcare power of attorney will make all medical decisions for you. Ideally, you’ll have an advance directive, which is a written account of your medical wishes. The person you name as your power of attorney will make decisions that go beyond that written document.
Qualities to look for when naming someone
You need to name a person who will act in your best interests and respect your wishes. They need to be able to advocate on your behalf when you can’t do so yourself. They should be dependable and responsible.
Power of attorney designations are only one part of a comprehensive estate plan. It’s critical to ensure that the other aspects of the estate plan are set in a way that accurately reflects your wishes and are legally conveyed.
