Making important decisions about your future is never easy, especially regarding who will manage your affairs if you cannot do so yourself. For many, choosing a power of attorney (POA) is as simple as selecting a spouse, child, or sibling. However, this process can be more confusing for those who do not have immediate family to rely on.
What Is a Power of Attorney?
A power of attorney is a legal document that lets you choose someone to make decisions for you if you ever need help. They can manage your money, make medical choices, or handle other essential tasks. This person, called your “agent,” has the authority you give them, depending on the type of power of attorney you set up.
Types of Power of Attorney
Since there are several types of POAs, your specific needs and circumstances will influence the type you choose.
Durable Power of Attorney
A durable power of attorney gives someone you trust the right to make decisions for you if you’re ever unable to do it yourself. This is a smart choice for long-term planning, especially if you’re worried about health problems in the future. It ensures you have someone you trust ready to help with important decisions when you can’t handle them yourself.
Limited Power of Attorney
A limited POA grants authority for specific tasks or a set period of time. For example, you might give someone permission to sign documents on your behalf while you’re out of the country.
Medical Power of Attorney
A medical POA provides a specific person with the authority to make healthcare decisions for you if you become seriously ill or injured. This ensures your medical wishes are respected, even if you are unable to communicate them yourself.
Financial Power of Attorney
A financial power of attorney allows you to select a person you trust to manage your money and handle financial tasks for you. They can pay your bills, manage your bank accounts, and oversee your investments. This can be really helpful if you’re away a lot or need someone to step in and keep things running smoothly.
Who Can You Choose as Your Power of Attorney?
If you don’t have immediate family, you still have several options for selecting a trusted agent:
- A Close Friend – A long-time friend who understands your values and has your best interests at heart can be a good choice. However, it’s important to make sure they are comfortable with the responsibility.
- A Distant Relative – Even if you don’t have close family, a cousin, niece, or nephew may be willing to take on this role. It’s worth having a conversation with extended family members to see if someone is a good fit.
- A Trusted Advisor – A lawyer, accountant, or financial advisor can serve as your power of attorney, especially for financial matters. They are familiar with managing assets and ensuring legal documents are handled properly.
- A Professional Fiduciary – If you prefer an unbiased party, you can hire a professional fiduciary, such as a bank or trust company, to handle financial decisions. Some private individuals offer these services.
What to Consider When Designating a Power of Attorney
Designating a power of attorney is a big decision. It’s important to choose someone you trust to be honest, responsible, and willing to respect your wishes. They should work well under pressure and be prepared to make tough decisions. Most importantly, make sure they are willing to take on this role.
Once you have chosen the right person, you need to decide if you need help with medical, financial, or both types of decisions. Put your choice in writing and have the document notarized. Finally, give copies to everyone involved, including your attorney, your agent, and anyone else who may need it.
Let Our Team Help
If you’re unsure who to name as your power of attorney or need guidance on setting up a POA that fits your needs, E.A. Goodman Law, LLC is here to help. We work with individuals in Morristown, NJ, to create legal plans that provide security and peace of mind.
Taking action now can prevent confusion and unnecessary stress down the road. Call us today to get started with a consultation and take the first step toward protecting your future.
Posted in: Power of Attorney