Regular readers know how important we at Rigby Financial Group consider your wills and powers of attorney (POAs), both durable, to cover your financial affairs, and medical, to cover healthcare decisions. And that powers of attorney are, in the normal course of events, given to a spouse, if the individual in question is married.

This is a fairly safe option, as it may be assumed that you and your spouse have the same interests, trust each other, have discussed any individual wishes and directions, and are willing and able to assume this responsibility for one another.

But what if you and your spouse are getting on in years, or have uncertain health? What if you’ve divorced (if any powers of attorney are involved, revoke them immediately!), or your spouse has predeceased you?

Or what if you simply want another person to have your power, or powers, of attorney?

Many people in this position consider passing those powers of attorney to an adult child. But that may not always be a wise decision.
When choosing a recipient other than your spouse for the responsibility of holding your powers of attorney–acting as your agent, below are some considerations to take into account:

Your Agent Needs to Be

• Trustworthy–in general, and particularly for you. You need someone you can trust to carry out your wishes and handle sensitive financial information, as well as make the most personal medical decisions.
• Competent and Experienced–in handling financial matters. Think about it–you wouldn’t want your financial concerns handled by a novice when you aren’t able to provide input.
• Willing and Available–this is crucial. You need an agent who will undertake significant and potentially time-consuming responsibilities on your behalf. You need someone who is 100% committed to handling such responsibilities.

Not necessary, but desirable, is an agent located close to you. It will be helpful in discussions and signing documents (some may require in-person signatures, particularly when notarization is required).

However, there is one last essential: your agent needs to maintain a calm, clear head when dealing with highly charged situations, such as life-threatening illnesses, and the decisions they make in such situations should come from reason, not emotion.

Your adult children may fulfill the first three requirements admirably, and live close by–but can you expect them to remain unemotional when confronted with the possibility of a parent’s death or incapacity? The medical and financial decisions they make under such strain may not be the most rational of choices–and who can blame them for caring?

But that isn’t the only question you need to ask yourself–and potentially your family, too–if you are considering making an adult child your agent.

Ask Yourself

• Does my son/daughter have the requisite legal and financial experience? If s/he has, great–but don’t set your child up to fail his/her family by asking them to handle responsibilities they aren’t prepared or equipped to fulfill effectively. That’s not the legacy you want to leave them.
• Will giving one child your POAs create family conflict? You may choose one of your adult children as best suited for the responsibilities acting as your agent entails, and you may indeed choose the best qualified child, but emotions don’t operate on a rational level, and some children may feel slighted, leading to conflict.
• Do they have the time and resources? Adult children may have significant demands on their time, focus, and energy. They have a job, possibly a family, and potentially other factors that impact the amount of time and effort they can devote to acting as your agent, regardless of their willingness.
• Can they stay calm in the face of medical choices impacting your life? This is the most challenging question. Is it fair to enlist a child to give the directive to “pull the plug,” even when that’s what you want? Your knowledge of your family may provide an answer. Or it may leave you in doubt.

If Not My Child, Who?

Although there will be a cost, it may be wise to assign your POAs to an experienced professional. Such professionals are usually found among:

• Attorneys–see what your estate attorney will charge.
• CPAs–check with your virtual CFO or other trusted financial advisor.
• Trust companies.
• Licensed fiduciaries.

These professionals will have the knowledge, experience, and expertise to give you confidence in the handling of your affairs, and that your wishes will be honored.

Also, under the law, they are all required to act in your best interests.

If you don’t want a professional, you can choose a close friend or relative who you think is fully qualified and emotionally equipped to handle the responsibilities of acting as your agent when you cannot.

There’s no single “right” answer on who to choose to hold your powers of attorney. It depends on so many factors, and not the least of these is your wishes.

Because one size never fits all, and at RFG, we never offer cookie-cutter solutions, every service we provide is tailored to the individual client’s goals, needs and desires.

So, come to us for bespoke tailoring–for all the decisions you face as you reach toward your golden years–and before that, to set yourself up for those years to be a fitting reward for the hard work you’ve contributed to your family, your community, your country.

Because you’re in this life for the long haul, and we are right there with you.

Please click here to email us directly – let us know how we can help. That’s what we’re dedicated to and passionate about.

Until next time –

Peace,

Eric