Your money most likely has a lot of value to you. Having no control over the use of your money can feel demoralizing. Naming a financial power of attorney can prevent this situation from happening.
A POA, in compliance with the instructions you provide, can oversee the distribution and use of your money if you suffer incapacitation. Knowing some characteristics that would make a good POA can help you select someone that meets your expectations.
Proactive and assertive
If you cannot make independent financial decisions, there might be family members who try to take over. Unfortunately, some of these people might have ill intentions and will take advantage of your wealth and your incoherence.
A good POA will be assertive in making sure your money remains safe and only used for what you have intended. Select someone who takes a proactive approach to making decisions and accomplishing tasks.
Economical and strategic
You can talk to your POA and disclose your expectations. This will provide clarity and reduce the risks of a misunderstanding from jeopardizing your financial security. Additionally, you will want to name someone who is both economical and strategic.
Finding someone who has a proven track record of using money wisely may give you peace of mind about your own financial security. Some other characteristics to look for include honesty, trustworthiness and compassion. Naming someone who lives relatively close to you may also eliminate some challenges that could interfere with your POA’s ability to meet your expectations.
A POA can make a considerable difference in your ability to plan ahead. According to U.S. News, having a POA is a critical part of your estate plan. Taking adequate time to find and select someone you trust may prevent costly mistakes.