Choosing the Right Person to Make Financial Decisions for You
Who will you trust to manage your finances and make decisions when you can no longer do so? This is one of the most important choices you will make in your estate plan. A Power of Attorney (POA) — sometimes called an “agent” — is the person you legally authorize to act on your behalf. Choosing the right person requires careful thought. Your agent must be someone you trust completely to act in your best interest and protect your financial well-being.
Who Can Serve as Your Power of Attorney
Most people choose a close family member, such as a spouse or adult child, to serve as their POA. If no family member is available, willing, or capable, you can appoint a trusted friend or even hire a professional representative. You may also name co-agents to share responsibilities or designate a backup agent in case the first choice is unable to serve.
Legally, the person you select must meet two criteria:
They must be an adult.
They must not be incapacitated.
There are no legal requirements for financial or legal expertise, but integrity is the most important quality your agent should have.
Questions to Consider Before Choosing an Agent
When selecting your POA, ask yourself:
How does this person handle their own finances and responsibilities?
Are they financially responsible and able to make decisions under pressure?
Will they charge a fee? (Family members usually do not, but professionals like attorneys or financial planners typically do.)
Are they willing to take on the responsibility? Serving as an agent is a serious commitment.
The Scope of Their Authority
You can give your POA broad authority to manage nearly all financial matters, or you can limit their power to specific transactions — such as selling real estate, managing investments, or paying bills. The authority you grant is completely customizable.
If you become unhappy with your choice, you can revoke the POA and appoint someone new — as long as you still have the legal capacity to do so.
Common Misconceptions About POAs
1. You can wait until you are incapacitated to set up a POA.
Unfortunately, you cannot. If you wait until you are incapacitated, it’s too late. In that case, a court may have to appoint someone — known as a guardian or conservator — to act for you. This could be someone you would not have chosen yourself. To stay in control of your future, put a valid POA in place while you are still capable.
2. A POA agent can do whatever they want with your finances.
Not true. By law, your POA agent has a fiduciary duty to act in your best interest. This legal obligation helps protect you and your estate from misuse or mismanagement. You can also appoint different agents for different powers — for example, one for healthcare decisions and another for real estate transactions.
Why Acting Now Matters
Designating a power of attorney is a crucial step in protecting yourself and your loved ones. The right agent ensures your bills are paid, your property is managed, and your wishes are followed — even if you cannot speak for yourself.
We can help you select the right person and draft a legally sound POA that complies with state law.
📞 Call us today at (207) 848-5600 or visit our CONTACT page to get started on securing your future.
