How to Choose the Right Person for Your Power of Attorney in Michigan
Why Choosing the Right Power of Attorney Matters
One of the most important decisions in an estate plan is choosing the right person to serve as your power of attorney. While many people understand that they need powers of attorney, they are often unsure who the right person should be.
A power of attorney allows someone you trust to make decisions on your behalf if you are unable to do so. Because these roles can involve important financial or medical decisions, selecting the right individual is essential.
At Fries Legal Services, my goal is simple: creating clear plans for life, legacy, and care. Choosing the right power of attorney is an important part of that process.
What Does a Power of Attorney Do?
A power of attorney is a legal document that allows someone you trust to act on your behalf if you become unable to manage certain decisions yourself.
Typically, estate plans include two types of powers of attorney:
Financial Power of Attorney
A financial power of attorney, also called a Durable Power of Attorney or General Durable Power of Attorney, allows someone to manage financial matters such as:
- Paying bills;
- Accessing bank accounts;
- Managing property or investments;
- Handling financial paperwork; and
- Protecting assets for long-term care Medicaid planning.
Medical Power of Attorney
A medical power of attorney allows someone to make healthcare decisions if you are unable to communicate your wishes. In Michigan, we call this person the "patient advocate."
These responsibilities can be significant, which is why choosing the right person matters.
Qualities to Look for in a Power of Attorney
When selecting someone to serve as your power of attorney, consider several key qualities.
Trustworthiness is the most important factor. This person may have access to sensitive financial or medical information, so it must be someone you trust completely.
Responsibility and organization are also important. Managing finances or coordinating medical decisions often requires attention to detail and the ability to handle important documents.
You should also consider whether the person can communicate effectively with family members, medical professionals, financial institutions, and attorneys.
Finally, the person you choose should be willing to serve. It is important to talk with them in advance so they understand the responsibility and feel comfortable accepting the role.
Common Mistakes When Choosing a Power of Attorney
Several common mistakes can create problems later.
One mistake is choosing someone out of family obligation rather than because they are the best person for the role.
Another is choosing multiple people who must act together, which can sometimes lead to delays or disagreements if decisions need to be made quickly.
A third mistake is not having a conversation beforehand, leaving the person unprepared if they suddenly need to step into the role.
Naming Backup Agents and Patient Advocates
It is also wise to name successor or backup agents and patient advocates.
Life circumstances change, and the person you select today may not be able to serve in the future. Naming a backup helps ensure that someone you trust is still available to step in if needed.
Why Communication Is So Important
Once you have chosen your power of attorney, communication is key.
It helps to talk with the person about:
- Your general wishes;
- Your priorities and values; and
- Where important documents are located.
These conversations can make a difficult situation much easier for the person you have trusted to act on your behalf.
Take the Next Step
Choosing the right power of attorney is an important part of creating a thoughtful estate plan. The goal is to make sure someone you trust can step in and help if life takes an unexpected turn.
If you would like help creating or reviewing your estate plan, I would be happy to guide you through the process.
