Some Considerations for Appointing a Power of Attorney

 

Carolyn M. Young Fiduciary Services pic

Carolyn M. Young Fiduciary Services
Image: carolynmyoung.com

Carolyn M. Young operates her own fiduciary services company in Sacramento, California, where she manages more than $75 million in assets and makes financial decisions as an acting trustee. Responsibilities for fiduciary agents like Carolyn M. Young include holding power of attorney for financial, medical, and business matters. The following considerations may help individuals who need to assign a power of attorney.

1. Level of trust. Trust is the most important aspect of determining who to appoint as your power of attorney. Remember that this individual take responsibility for carrying out your wishes, so you want to choose someone who will keep your best interests at heart and adhere to preferences you’ve made clear to him/her. Consider your relationship to the individual and how much you trust him/her.

2. Proper knowledge. Make sure the person you appoint as power of attorney possesses the proper knowledge and skillset to handle the expected responsibilities. Depending on the duties, your power of attorney will need the knowledge to make sound financial decisions for you and enough business acumen to make decisions for your business.

3. Problem-solving skills. Your power of attorney’s ability to solve problems can affect his/her ability to successfully carry out your wishes. In addition to area-specific knowledge required to address certain responsibilities, your power of attorney will need the intellectual capacity to make decisions and come to reasonable compromises when necessary.

4. Single vs. multiple attorneys. Although it usually depends on the circumstances, you can appoint multiple powers of attorney if necessary. Determine how many powers of attorney your situation requires and whether they will work jointly or individually. If you do select appoint multiple individuals to act as power of attorney, make sure to choose people who can work well together.

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