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What if I Don't Have Anyone to Serve as My Financial Power of Attorney?
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Addressing the question of who will manage your affairs if you become incapacitated is essential. In a previous blog post, I discussed selecting a Medical Power of Attorney. This article focuses on the process of choosing a Financial Power of Attorney.
Spouse: Typically, your spouse is the most logical choice for your Financial Power of Attorney. They are intricately involved in your financial matters, and most financial decisions impact both of you significantly.
Family: Your next consideration should be family members. If you have adult children, carefully consider who among them would be most suitable. You might also consider appointing them as co-Powers of Attorney.
Caution: Avoid appointing a family member with a history of substance abuse or gambling addiction. While it may seem like there are no other options, doing so could potentially place them in a position where they might commit a crime. For instance, if your child misuses your funds leading to government-paid care, they could face charges of exploiting an elderly person.
Friends: A close friend who genuinely cares about your well-being can be a good choice. Discuss with them the possibility of handling your finances, and consider compensating them for their time.
Professionals:
Financial Advisor: While a financial advisor might seem like an ideal choice, many are restricted from acting as a POA by their brokerage firms. Discuss this option with them if you're considering it.
CPA: Your CPA could be a strong candidate for your Financial POA. Their expertise in accounting and access to trained staff can ensure prudent management of your affairs.
Attorney: I have personally acted as a financial power of attorney for several clients. With a large staff, I can delegate much of this responsibility. However, not all attorneys provide this service, so it's important to consult with your attorney first.
Corporations: Some corporations offer financial power of attorney services, typically at a substantial fee. This can be a viable option if no suitable individual is available. To explore this, search for "Financial Power of Attorney Services.
Selecting the right person or entity to act as your Financial Power of Attorney is a critical decision. Carefully weigh your options to ensure your financial matters are in trustworthy hands.