Assigning someone the financial power of attorney, or POA, is a big deal. This person will handle your financial affairs should you become incapacitated. Completing this step ensures your finances will be taken care of even if you are unable to make decisions for yourself. Due to the brevity of this responsibility, you should make sure you choose the right person when you sign a POA.
Allowing someone else to handle your finances is an important yet weighty decision. Keep reading for tips for choosing a trustworthy individual.
The person responsible for your finances should possess the following qualities:
- Understanding of the duties and commitment to them
- Attention to detail
- Ability to collaborate with accountants and attorneys
- Understanding of financial affairs and business
In addition, you should be able to trust this person. The best person for the role is someone who understands your values and commits to acting in your best interest.
Choosing the right person
If you have an idea of who you want to choose but are not quite sure yet, you should have a conversation with this person. It might be a child, relative or close friend. Having a conversation with this individual in which you discuss the duties, responsibilities and scope of your financial situation will help you determine whether this person is the right fit.
Benefits of choosing the right person
Giving financial POA to someone who is trustworthy and has the right characteristics comes with various advantages. You can give your POA the ability to handle investments, property, taxes, business operations, mortgage payments, daily expenses and hire legal counsel.
While you do not want to wait too long to assign someone the responsibility of financial POA, you should also not rush. Take your time when choosing someone. The first person who comes to mind may not be the right one. For help making this choice, consult an estate planning attorney.