Powers of attorney provide people with protection in situations where they cannot manage their resources effectively. The agent or attorney-in-fact they appoint can access financial accounts, manage resources, pay bills and even conduct business transactions on behalf of the principal.
An agent can protect a person who is unable to manage their own affairs from future economic hardship. Nominating the right person to hold this important form of authority requires a careful evaluation process.
Who can serve as an agent?
Technically, any competent adult can potentially act as an agent on behalf of another person with valid power of attorney paperwork. However, not everyone can readily manage complex financial matters competently.
Additionally, some people might abuse their authority for personal gain, which can have devastating consequences for the principal who drafted the documents. Many people who might be trustworthy and competent live too far away, have serious medical challenges or have personal obligations that might prevent them from effectively acting as an agent.
Choosing people who live nearby, who have a history of responsible behavior and who are healthy enough to realistically offer support for the indefinite future may require a careful evaluation of friends and family members. It is also important to discuss the decision with the potential agent to ensure they agree to take that authority if their support ever becomes necessary.
Working with a lawyer when creating powers of attorney can help people ensure their documents offer them adequate protection. The agent nominated in the paperwork is one of the most important elements of powers of attorney.