For solo agers–those aging without a spouse, partner, or children–planning for the future requires careful consideration, especially when managing financial and medical decisions. One of the most important steps in this process is designating a power of attorney (POA). A POA allows someone you trust to make decisions on your behalf if you become incapacitated.
However, for solo agers, the question of who should take on this significant responsibility can be challenging. In this blog, Heritage Legal will cover the key aspects solo agers should consider when choosing a power of attorney, how to ensure your POA reflects your wishes, and why this decision is vital for long-term peace of mind.
What Is a Power of Attorney?
A power of attorney is a legal document that authorizes someone (called an agent or attorney-in-fact) to act on your behalf if you cannot make decisions for yourself. There are two primary types of powers of attorney:
Financial Power of Attorney: This type of POA allows your agent to manage your financial affairs, including paying bills, managing investments, and making decisions related to your property or business.
Medical Power of Attorney: Also known as a healthcare proxy, this authorizes your agent to make healthcare decisions for you, such as approving medical treatments or deciding on long-term care.
Why Is Designating a Power of Attorney Crucial for Solo Agers?
As a solo ager, you may not have immediate family members to rely on for these decisions. This makes choosing a trusted POA essential to ensuring your affairs are handled in accordance with your wishes. Without a designated POA, the court may appoint someone to manage your finances and health decisions—a process that can be time-consuming and may not align with your preferences.
Key Considerations When Choosing a Power of Attorney
Trust and Reliability
When selecting a POA, trust is the single most important factor. Your agent will have significant authority over your finances, healthcare decisions, or both. It’s essential to choose someone who you trust to act in your best interests. If you don’t have a family member or close friend who fits this description, consider a professional fiduciary or an attorney with experience in managing such responsibilities.
Capability and Competence
Beyond trust, your POA should be capable of handling the specific responsibilities assigned to them. For financial matters, they should be organized, financially literate, and able to navigate complex decisions regarding investments, property, and banking. For healthcare decisions, they should be able to make tough choices under pressure, ensuring your medical wishes are honored. If you have a more complex financial or medical situation, your agent’s knowledge and competence will play an even bigger role.
Willingness to Act
Before designating a power of attorney, you should have an open and honest conversation with the person you’re considering. Make sure they fully understand the role they will be taking on and are willing and available to step in when needed.
Not everyone is comfortable with taking on these responsibilities. Financial management can be time-consuming, and medical decisions can be emotionally challenging. Your agent must be prepared to make difficult decisions and carry out your wishes, even if those decisions are complex or controversial.
Geographic Proximity
While it’s not a strict requirement that your POA live near you, having someone who is geographically close can be beneficial. In the event of a medical emergency or urgent financial matter, having your agent nearby can make it easier for them to step in quickly. This is especially important for healthcare POAs, as they may need to communicate with doctors or visit you in the hospital.
Professional vs. Personal POA
If you don’t have a friend or family member who is a good fit for the role of power of attorney, consider appointing a professional. Attorneys, financial advisors, or trust companies can act as your agent and bring a level of experience that might be especially helpful for more complex estates. While professional POAs charge fees, their impartiality and experience can provide peace of mind, knowing that your affairs will be handled according to your wishes.
Steps to Take After Designating a Power of Attorney
Once you’ve chosen your power of attorney, it’s important to ensure the legal documentation is prepared correctly and reflects your intentions. Here are a few steps to take:
Draft the Document: Work with an experienced attorney to draft a POA document specific to your needs. Depending on your preferences, you can tailor the document to give your agent broad or limited powers.
Communicate Your Wishes: Clearly communicate your wishes to your POA. For healthcare POAs, this may include specific instructions for medical treatment, end-of-life care, or religious preferences. For financial POAs, this could include guidelines for managing investments or selling property.
Provide Access to Information: Ensure your POA has access to essential documents, such as financial statements, insurance policies, and medical records. You may also want to give them contact information for your attorney, financial advisor, or healthcare providers.
Review and Update Regularly: Life circumstances change, and so might your choice of POA. Periodically review your POA to make sure your agent is still the best person to act on your behalf.
Your Trusted Palm Springs Estate Planning Law Firm
For solo agers, designating a power of attorney is essential to protecting your future and ensuring that your wishes are honored. Take the time to choose someone who is trustworthy, capable, and willing to act in your best interests. If you need assistance with drafting or updating your POA, Heritage Legal can help guide you through the process to ensure your peace of mind. Contact us today to get started.