People who have considerable investments or assets want to ensure that those are always as protected as possible. One way that you can do this is to set up the power of attorney designations now. This is your opportunity to decide who will make decisions about your finances if you're incapacitated.
There are several characteristics that you need to consider when you're trying to determine who you'll name as your financial power of attorney. Remember you can choose what powers you give them.
Is the person financially responsible?
You need someone who's financially responsible because they'll have to ensure that your bills are paid. You also need someone who's familiar with handling the type of assets you have. For example, if you have a personal portfolio of commercial properties that you lease out, you need a power of attorney who understands how to handle those.
Will they make decisions that are in your best interests?
The person you name as power of attorney can't be self-serving. They need to be able to make decisions based on what's best for you. Ideally, you'll be able to talk to them about your wishes so they have a better understanding of what you'd do in specific situations.
Getting your power of attorney documents set up is only part of your estate plan. You have to consider other aspects, such as how you'll pass along assets when you pass away. Getting everything together now can give you peace of mind, and it benefits your loved ones since they'll have a plan to follow.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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