Taking on the role of a power of attorney (POA) is a serious responsibility that involves making important decisions on behalf of someone else—typically a loved one. Whether it's managing finances, making healthcare decisions, or handling legal matters, being a great agent under power of attorney requires trust, communication, and a clear understanding of your duties. Here’s what you need to know to navigate this role effectively.
Understand the Scope of Your Authority
First things first: know your scope of authority. A Power of Attorney document may be limited or broad, and it’s essential to understand what exactly you are permitted to do as an agent. Are you responsible for financial decisions, healthcare decisions, or both? Is your role active immediately, or does it only come into play if the person becomes incapacitated? Understanding these details helps you act within the boundaries of your role, ensuring you don’t overstep or overlook any responsibilities.
Tip: Review the Power of Attorney document carefully with a Certified Elder Law Attorney and outline your scope of authority and your obligations as a fiduciary.
Prioritize the Principal’s Wishes
As a power of attorney, your primary duty is to act in the best interest of the person who appointed you (known as the principal). This means prioritizing their wishes and values, even if they differ from your own.
For instance, if the principal has specific preferences regarding medical treatments or financial investments, it’s your job to honor those preferences. If the principal is still able to communicate, maintain an open dialogue with them to ensure you’re aligned with their current wishes.
Tip: Keep written records of the principal’s wishes and decisions you make on their behalf as well as financial records. This not only provides clarity but can also serve as important documentation if any questions arise later.
Maintain Clear and Regular Communication
Good communication is crucial when you’re an agent under a Power of Attorney. If appropriate, keep the principal informed about the decisions you’re making.
Aside from the principal there is the question of whether the agent has a duty to stay in touch with other family members or involved parties. While transparency can prevent misunderstandings and foster trust among everyone involved, there may be some situations where privacy must be maintained, and the document itself may provide that the agent has a “duty to account” to limited people. It’s also important to communicate with the principal’s professionals such as doctors, financial advisors, and lawyers. When the principal becomes incapacitated, financial institutions can be challenging in terms of their acceptance of a Power of Attorney even if the document is legally perfect and in full effect. Be sure to contact a Certified Elder Law Attorney if you need guidance.
Tip: Set up regular check-ins with the principal and principal’s advisors. Be sure to establish your role as an agent under Power of Attorney at all financial institutions prior to incapacity.
Be Organized and Detail-Oriented As a power of attorney, you may need to manage various documents, accounts, and legal papers. Staying organized is key to fulfilling your role effectively. Keep meticulous records of every decision, transaction, and communication related to your role. This not only helps you stay on top of your responsibilities but also provides a clear trail of your actions, which can be crucial if your decisions are ever questioned. Tip: Use tools like spreadsheets, digital folders, or apps specifically designed for organizing legal and financial information. Keeping everything in one place can save time and reduce stress. Stay Objective and Avoid Conflicts of Interest When acting as a power of attorney, it’s essential to remain objective. Your decisions should be based on what’s best for the principal, not on personal preferences or emotions. Conflicts of interest can arise, especially if you’re handling finances. For example, if you stand to inherit money or assets, you must be particularly careful to avoid any actions that could be seen as self-serving. Tip: If you ever find yourself in a situation where you feel a conflict of interest might arise, consider seeking advice from a neutral third party, such as a lawyer or financial advisor. Know When to Ask for Help Being an agent under a Power of Attorney doesn’t mean you have to do everything alone. It’s okay to ask for help when you need it—whether that’s legal advice, financial guidance, or emotional support. The role can be overwhelming, especially if you’re managing complex healthcare decisions or large sums of money. Reaching out for professional advice or involving other trusted family members can help you make more informed decisions and share the burden of responsibility. Tip: Understand that Certified Elder Law Attorneys who are members of the Life Care Planning Law Firm Association will have not only legal expertise, but the help of Elder Care Coordinators who can provide peace of mind and ensure you’re making the best possible choices. The Role as an Agent Power of Attorney Is a Privilege Being entrusted as an agent under a Power of Attorney is a profound responsibility and a sign of the trust that the principal places in you. By approaching this role with care, respect, and a clear understanding of your duties, you can honor that trust and provide invaluable support to your loved one during times of need. Remember, it’s not just about making decisions—it’s about making the right decisions in a way that aligns with the principal’s wishes and best interests. Stay organized, communicate appropriately, and never be afraid to seek help when needed. With these considerations in mind, you’ll be well-equipped to serve as a great agent and fiduciary.
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