What to Discuss with Your Power of Attorney Agent Before Something Happens
Planning ahead for emergencies is smart. You know where your batteries, flashlights, blankets, and bottled water are before a storm. But what about a medical or other emergency that leaves you incapacitated or unable to make decisions for yourself?
That’s where a power of attorney comes in. A power of attorney is a legal document that names another person (known as your power of attorney agent) to represent you or act on your behalf in certain business, medical, legal, or private affairs if you need it. Many estate planning experts, including the ones at Warren Allen LLP, recommend a power of attorney as part of a comprehensive estate plan.
While having a power of attorney in place is great, it’s also important to have conversations with your agent before something happens. It’s important they understand your expectations and your values, including any boundaries you want to set on their authority.
So, what should you discuss with your power of attorney agent to make sure they can confidently make decisions on your behalf?
Financial Responsibilities
If you have a financial power of attorney, it allows your agent to manage your money, property, and related legal affairs. It’s important that they know how you want your money managed.
For instance, are you conservative with your finances, preferring low-risk investment opportunities with sure outcomes, or are you comfortable with some risk? Do you prefer your assets to be preserved at all costs (for the benefit of your beneficiaries), or can they be used to maintain your quality of life?
What are your recurring expenses and obligations, and how do you want those bills to be handled? Make sure your agent knows about any mortgages, loans, taxes, business interests, charitable giving habits, and financial support you provide for family members and whether you want all these obligations to continue.
Your agent will need to know where all your bank, investment, and retirement accounts are held. You should also share with them the physical (or electronic) location of all deeds, titles, and insurance policies. If you are uncomfortable sharing passwords with your power of attorney agent in advance, you can usually add them as an authorized user to your accounts, which will give them appropriate access when needed.
Healthcare Wishes
When it comes to a medical power of attorney, it’s very important that your agent clearly understands your religious, cultural, and moral values and what is most important to you in life, since they might be tasked with making pain management and end-of-life care decisions for you. Some important considerations to discuss with your medical power of attorney agent include:
Life-Sustaining Treatment
Do you have specific preferences related to the use of ventilators, feeding tubes, CPR, and resuscitation efforts? Are there any circumstances where you would decline aggressive treatment plans?
Quality of Life
What makes life meaningful for you? Is there any point where you might prioritize comfort or palliative care over continued treatment or life extension?
Pain Management and End-of-Life Care
What are your pain management priorities? For instance, do you care more about pain relief or being mentally present for your loved ones? Do you have any preferences regarding hospice (in-home or in a designated facility)? Are you an organ donor? Are there any religious or cultural traditions or considerations that you want your medical power of attorney to respect or prioritize?
Even if you clearly set out all of these issues in writing, having a direct conversation with your agent, regardless of whether it’s a spouse or family member who knows you well, can provide insight and context for them that might help them think clearly in an emergency, without having to consult the paperwork.
Decision-Making Boundaries and Limits on Authority
Depending on the type of power of attorney you establish, your agent might have certain limits on their authority. Make sure your power of attorney agent knows exactly when the power of attorney goes into effect, such as immediately or only if you become incapacitated, and if it’s for a limited time or not.
You might also choose to set some boundaries on their decision-making, and it’s vital that they know what your boundaries are. For example, do you want them to consult with certain family members before making major decisions like selling your home or gifting assets? Should they confer with anyone in particular before making pain management and treatment choices? Are they allowed to delegate tasks to professionals if they need help? Are there any actions you absolutely do not want them to take under any circumstances?
Setting out clear expectations and boundaries from the outset will help prevent confusion and uncertainty, especially if circumstances change quickly. Clarify with your agent that their legal duty is to act on your behalf in your best interest, not follow what they would do in your place.
Clear Communication, Documentation, and Expectations
To act confidently on your behalf, your agent needs full access to pertinent information. You can provide them with physical and electronic copies of important documents (including the power of attorney document) or at least make sure they know where everything is located and how to access it quickly.
Provide an emergency contact list, including any family members you want them to contact and when, as well as contact information for your attorney, financial advisor, accountant, doctors, and so on.
Before designating your agent, clearly communicate with them about the time, stress, and emotional weight that might be involved. Will you compensate them financially? How involved do you realistically think they will need to be?
Make sure your agent is capable and willing to commit to this important role. It’s also advisable to name a backup agent.
Talk to an Estate Planning Attorney
It’s a good idea to consult with knowledgeable estate planning attorneys when preparing your power of attorney documents (both financial and medical) to make sure they are clear and comprehensive. You can also involve your power of attorney agent in these conversations.
You should also review your plan periodically, especially after significant life changes, such as moving to a new state, getting married or divorced, having children, or being diagnosed with an illness.
If you would like to discuss drafting a power of attorney document or reviewing an existing one, schedule a consultation with Warren Allen LLP. We look forward to helping you protect your future.
