Who Should Make Decisions When You Can’t? Choosing Your Power of Attorney

One of the most important decisions when preparing your will and powers of attorney isn’t about what happens after you pass away – it’s about who will handle your finances if you become unable to do so yourself.

Whether due to illness, injury, or cognitive decline, there may come a time when you can’t manage your own financial affairs. Your power of attorney will have legal authority to pay your bills, manage your investments, handle your banking, and make financial decisions on your behalf.

The question is: who should you choose for this crucial role?

What Makes a Good Power of Attorney?

Financial Responsibility and Common Sense

Look for someone who manages their own money well. They don’t need to be wealthy, but they should demonstrate good judgment with financial decisions, pay their bills on time, and live within their means. If they struggle with their own finances, they’re not the right choice for yours.

Trustworthiness and Integrity

This person will have access to your bank accounts, investments, and financial information. Choose someone with unquestionable honesty who will always act in your best interests, not their own. Trust your instincts – if you have any doubts, keep looking.

Availability and Proximity

Financial matters often require immediate attention. Your ideal candidate should be geographically accessible and have the time to handle your affairs. Someone who travels constantly for work or lives across the country might not be practical, regardless of how much you trust them.

Organizational Skills 

Managing someone else’s finances requires keeping detailed records, tracking expenses, and staying organized. Look for someone who naturally keeps good records and pays attention to details. This isn’t the job for someone who loses important paperwork or misses deadlines.

Comfort with Financial Tasks 

Some people are simply uncomfortable handling money matters or dealing with banks and investment firms. Your power of attorney should be someone who won’t be intimidated by financial institutions and can confidently advocate for your interests.

Consider Age and Family Dynamics

Many people automatically think of their spouse or oldest child, but consider their age and health. If your spouse is the same age as you, they might face their own health challenges when you need help most. Sometimes, a slightly younger family member or trusted friend might be a more practical choice for long-term planning.

Also consider how your choice might affect family relationships. In certain cases, the most financially capable family member isn’t the best choice if it will create conflict or resentment among other relatives.

Don’t Put All Your Eggs in One Basket

Always name a backup (or even two). Your first choice might become unavailable due to their own health issues, family circumstances, or other life changes. Having alternatives named in your power of attorney documents ensures someone you trust can step in when needed.

The Conversation You Need to Have

Once you’ve identified your choice, have an honest conversation with them. Explain what the role involves, where your important documents are located, and what your wishes are for financial decisions. Make sure they’re willing and able to take on this responsibility – never surprise someone with this appointment.

The time to set up your power of attorney is while you’re healthy and capable. Once you’re unable to make these decisions yourself, it’s too late to create these documents. Your family would then need to go through the courts to get authority to handle your affairs – a costly, time-consuming process that could have been easily avoided.

Ready to put these protections in place? Contact TLR Law at (204) 925-1900 or reach out online – we’re here to help you make these important decisions with confidence.