Creating a power of attorney is an important step in protecting your future, but the document is only as good as the person you choose to act as your agent. Your agent (also called an attorney-in-fact) will have significant authority over your finances, healthcare, or both. Choosing the wrong person can lead to mismanagement, financial loss, or decisions that do not reflect your wishes. This guide will help you evaluate potential agents and make a confident, informed decision.
Why Your Choice of Agent Matters So Much
Your agent is the person who will step into your shoes and make decisions on your behalf when you cannot do so yourself. In a financial power of attorney, this means they could be paying your bills, managing your investments, selling your property, or running your business. In a medical power of attorney, they could be deciding whether you undergo surgery, what medications you receive, or how end-of-life care is handled.
The authority granted in a power of attorney is substantial. An agent who is careless, dishonest, or simply overwhelmed can cause serious harm. Conversely, an agent who is trustworthy, organized, and aligned with your values can provide invaluable protection and peace of mind.
Courts rarely intervene in an agent's actions unless someone files a complaint. This means your first and best line of defense is choosing the right person from the start.
Essential Qualities to Look For
When evaluating potential agents, consider the following qualities carefully.
Trustworthiness
This is the single most important quality. Your agent will have access to your money, your property, and potentially your most intimate healthcare decisions. They must be someone you trust completely to act in your best interest, even when no one is watching. Look for someone with a consistent track record of honesty and integrity in their personal and professional life.
Financial Competence
For a financial POA, your agent needs to be comfortable managing money and making financial decisions. This does not mean they need to be a financial advisor, but they should be someone who manages their own finances responsibly, understands basic banking and investment concepts, and can handle administrative tasks like paying bills on time and keeping records.
Emotional Resilience
For a healthcare POA, your agent may need to make difficult medical decisions under stressful, emotional circumstances. They should be someone who can remain calm under pressure, communicate clearly with medical professionals, and make hard choices while honoring your wishes, even if those choices conflict with their own preferences.
Availability and Proximity
Consider whether your potential agent lives nearby or at a distance. While many financial tasks can be handled remotely, some situations require in-person action, such as visiting a bank, attending a real estate closing, or meeting with your doctors. An agent who lives far away may face practical challenges in fulfilling their duties.
Willingness to Serve
Being an agent is a significant responsibility, and not everyone is willing to take it on. Before naming someone as your agent, have an honest conversation with them about what the role entails, the time commitment involved, and whether they are comfortable accepting the responsibility.
Common Choices for Agent and Their Pros and Cons
Spouse or Partner
Many people choose their spouse or domestic partner as their agent. The advantages are clear: they typically know you best, share your financial picture, and are invested in your wellbeing. However, there are situations where a spouse may not be the best choice, such as if they are aging alongside you and may face their own health challenges, if there are marital difficulties, or if they lack the skills needed to manage complex finances.
Adult Children
Adult children are another common choice. They often have a strong personal interest in your wellbeing and are familiar with your values and preferences. However, choosing one child over others can create family tension. If you name multiple children as co-agents, decision-making can become complicated, especially if they disagree. Consider whether your children have the maturity, financial skills, and emotional resilience needed for the role.
Other Family Members
Siblings, nieces, nephews, or other relatives can be good choices if they have the right qualities and are willing to serve. The advantage is a pre-existing relationship built on trust. The potential downside is that family dynamics can complicate things, especially if there are disagreements about your care or finances.
Trusted Friends
A close, reliable friend can be an excellent agent, particularly if they have relevant skills (such as financial expertise or healthcare experience) that your family members lack. The main consideration is whether the friendship will endure over time and whether they will remain willing and able to serve when needed.
Professional Fiduciaries
In some cases, hiring a professional fiduciary, such as a licensed fiduciary, accountant, or trust company, can be the best option. This is particularly worth considering if you have complex financial affairs, if no suitable family member or friend is available, or if you want to avoid potential family conflicts. Professional fiduciaries charge fees for their services but bring expertise and impartiality.
Safeguards to Build Into Your POA
Regardless of who you choose, consider building safeguards into your power of attorney document.
Name successor agents. If your primary agent is unable or unwilling to serve when the time comes, a successor agent can step in. Name at least one backup, and ideally two.
Require accountings. You can include a provision requiring your agent to provide periodic financial reports to a designated family member or other trusted person. This creates accountability and transparency.
Limit the powers granted. You do not have to grant your agent unlimited authority. If you are concerned about certain types of transactions, you can exclude them from the POA or require the agent to get approval before taking certain actions.
Name a monitor. Some people appoint a separate individual to oversee their agent's activities. This person can review records, ask questions, and raise concerns if they see anything problematic.
Consider co-agents carefully. Naming two people as co-agents means they must act together, which provides a check on each agent's actions. However, it also creates practical complications if the co-agents disagree or if one is unavailable. Co-agents are generally not recommended unless there is a specific reason for the arrangement.
Having the Conversation
Once you have identified your preferred agent, have a thorough conversation with them. Discuss why you are creating the POA and why you chose them. Explain the powers you plan to grant and any limitations or conditions. Share your values, preferences, and priorities, especially regarding healthcare decisions. Let them know where the document will be stored and who else will have copies. Ask if they have questions or concerns about serving as your agent.
This conversation is also an opportunity to gauge their reaction. If they seem reluctant, overwhelmed, or uncomfortable, it may be better to choose someone else. An unwilling agent is unlikely to be an effective one.
Review Your Choice Periodically
Your choice of agent is not permanent. Life circumstances change, and the person who was the perfect choice five years ago may not be the right fit today. Relationships evolve, people move, health situations change, and financial circumstances shift. Review your power of attorney every few years and whenever a major life event occurs, such as a marriage, divorce, death, relocation, or falling out with your agent.
If you need to change your agent, you can revoke your existing POA and create a new one with a different agent named. The process is straightforward in most states.
Choose Wisely, Plan Confidently
Selecting the right agent is arguably the most critical decision in the power of attorney process. Take your time, evaluate your options honestly, and do not be afraid to have difficult conversations. The right agent will give you confidence that your affairs will be handled responsibly and your wishes will be respected.
When you are ready to create your power of attorney, mypoa.ai helps you through every step of the process, including guidance on structuring the powers you grant to your agent. Your download includes jurisdiction-specific instructions for proper signing, witnessing, and notarization.