How Do You Choose the Right Person for Your Power of Attorney?

A Power of Attorney is a document that authorizes someone to represent and act on your behalf should you not be in a position to do it. The person you name to act on your behalf is known as the “agent.”  Your agent may need to sign contracts, handle investments, sell property, write checks, and even take care of your pets. You can narrow down the specific tasks you would want the agent to handle, but it is more common to give the agent very broad authority to act on your behalf so they can do anything that may be necessary.

According to Elder Law Attorney, Karen Jo Bennett of Wenzel Bennett & Harris, P.C. in Alpena, Michigan one of the most important legal documents you need is a Power of Attorney. It may avoid the need for a guardian or conservator if you become incapacitated. It is also a vital tool to protect your assets, especially if you should need long-term health care.

The specific authority you give your agent is entirely dependent on the content of the document. You generally want to give your agent a great deal of discretion to take many actions, which may include the power to make gifts, create trusts, transfer real estate and apply for government benefits, such as Medicaid. The document should be prepared by an attorney who is knowledgeable about estate planning and planning for long-term health care needs. The law firm of Wenzel Bennett & Harris is highly experienced in estate planning, asset protection and Medicaid planning. They will work with you to prepare a Power of Attorney that will best meet your specific needs.

 

Selection of Your Agent

Because the Power of Attorney is such a powerful document, the selection of the agent to act on your behalf is very important. The agent you select might be a family member, friend or professional advisor.  Your primary concern will be choosing an agent whom you trust to honor your wishes and act in your best interest. Your agent should also be able to understand your affairs and make good decisions regarding your property and finances. You want someone who is willing to seek professional guidance in areas that may affect your taxes, estate planning or long-term health care planning.

It is also helpful to select a person who is trusted by other family members, to avoid unnecessary friction.  Your agent should understand that, while it is an honor to be named as an agent under a Power of Attorney, it is also a commitment and responsibility which cannot be taken lightly. The agent will be required sign a document indicating that he or she understands and accepts this responsibility.

Selecting the right person for the job can be a daunting task. Giving someone the power to manage your property and finances can be difficult. If you are considering someone for your power of attorney but aren’t sure it’s the right decision, it is helpful to discuss this with your lawyer. Wenzel Bennett & Harris. P.C. is a law firm focused on helping clients with asset protection and estate planning. They will help you evaluate your choices so that you can feel confident with the agent you select

If you have specific questions about your situation or would like to learn more, reach out to the team at WBH here.

Read more articles:

Medicaid’s “Snapshot” Date and Its Crucial Impact on a Couple’s Financial Picture

When a married couple applies for Medicaid, the Medicaid agency must analyze the couple’s income and assets as of a particular date to determine eligibility. The date that the agency chooses for this analysis is called the “snapshot” date and it can have a major...

Using a Roth IRA as an Estate Planning Tool

A Roth IRA does not have to be used as just a retirement plan; it can also be a way to transfer assets tax-free to the next generation. Unlike a traditional IRA, contributions to a Roth IRA are taxed, which means that the distributions are tax-free. Also, unlike a...

When Can Someone Be Declared Legally Incompetent?

If a loved one is experiencing memory loss or suddenly making poor decisions, you may be in a situation where it becomes necessary to ask the probate court to appoint a guardian and/or a conservator for them. This is a complicated process, so we strongly encourage our...

The Tax Consequences of Selling a House After the Death of a Spouse

If your spouse dies, you may have to decide whether or when to sell your house. There are some tax considerations that go into that decision.  The biggest concern when selling property is capital gains taxes.  A capital gain is the difference between the "basis" in...

Older Adults Lack Information in Search for Long-Term Care

According to a recent national study, nearly a quarter of Americans aged 50 and older say they – or a loved one – needed long-term care in 2022. The findings further suggest that seniors and their caregivers could benefit from more consumer-friendly information and...

In 2022, Social Security Beneficiaries Will See the Biggest Increase in 39 Years

The year was 1983: The U.S. invaded Granada. A gallon of gas cost 96 cents. Michael Jackson’s ‘Thriller’ video premiered. That year was also the last time that Social Security recipients saw a cost-of-living increase steeper than the one just announced for 2022. This...

The 6 Biggest Estate Planning Mistakes

If you’re like most people, you have the best of intentions regarding how you want your estate distributed when you die or your affairs handled should you become incapacitated. Unfortunately, without proper planning, your best intentions may not be enough. Here are...

Medicare’s Limited Nursing Home Coverage

Many people believe that Medicare covers nursing home stays. In fact, Medicare's coverage of nursing home care is quite limited. Medicare covers up to 100 days of "skilled nursing care" per illness, but there are a number of requirements that must be met before the...

Court Case Illustrates the Danger of Using an Online Power of Attorney Form

A recent court case involving a power of attorney demonstrates the problem with using online estate planning forms instead of hiring an attorney who can make sure your documents are tailored to your needs. Mercedes Goosley owned a home in Pennsylvania. In 2013, she...

Claiming Social Security Benefits at Age 70

If you are about to turn 70, congratulations on reaching a big milestone.  And if you also have delayed claiming Social Security retirement benefits up till now, you are joining a select group -- only 6.5 percent of Social Security recipients put off collecting their...