How to Choose the Right Power of Attorney

When it comes to estate planning, few decisions feel as personal or as important as choosing your Power of Attorney (POA). 

A Power of Attorney is a legal document that gives someone you trust the authority to act on your behalf if you’re ever unable to make decisions yourself. That could mean managing finances, making medical choices, or both, depending on the type of POA you put in place. 

Whether you’re planning ahead for a future you hope never comes or responding to changes in health or family structure, this choice carries emotional weight. But it doesn’t have to be overwhelming. 

The right Power of Attorney is someone you trust to act in your best interest. This blog can help you understand your options, weigh the right questions, and approach the process with confidence. 

The Two Main Types of Power of Attorney

Most estate plans include two types of POA:

• • Financial Power of Attorney (Durable POA): This person can manage your finances, pay bills, file taxes, handle property matters, and make legal or business decisions if you’re incapacitated.
  • Healthcare Power of Attorney (Healthcare Directive or Medical POA): This person can make medical decisions on your behalf if you can’t speak for yourself. 

In some cases, people name the same individual for both roles. In others, they assign responsibilities based on each person’s strengths. For example, one child may be better equipped to handle financial matters, while another is a healthcare professional. 

Depending on how your documents are written, your POA may go into effect immediately or only is a doctor certifies that you’re unable to make decisions yourself. This distinction, called a “springing” POA versus an “immediate” POA, is something an attorney can help clarify based on your goals and comfort level. 

What Happens If You Don’t Choose One?

Without a Power of Attorney in place, the court may appoint a guardian or conservator to make decisions for you. This process can be costly, time-consuming, and emotionally difficult for loved ones, especially if family members disagree on who should take the lead. 

Appointing a POA in advance helps you protect your voice and your values while minimizing the burden on your family during an already stressful time. 

7 Questions to Ask Yourself Before Choosing a POA

This is more than a legal decision; it’s a personal one. Use these questions to help clarify who might be the right fit:

1. Who do I trust to carry out my wishes, even under stress or pressure?
2. Does this person handle responsibility well and make level-headed decisions?
3. Are they available and willing to step in if something were to happen?
4. Do they live nearby or have the flexibility to act quickly if needed?
5. Do they understand my values, both financially and medically?
6. How well do they communicate with others? Could they navigate family dynamics?
7. Have I had an open conversation with them about this role?

You don’t need someone with legal or financial experience. What matters most is that they’re dependable, thoughtful, and able to advocate for your wishes. 

Consider Naming an Alternate, Too

Life changes. People move, age, or go through circumstances that may make them unable or unwilling to serve. That’s why we recommend naming one or two backup POAs, just in case your first choice isn’t available when needed. 

This type of planning can also provide peace of mind as you consider the possibility of future health challenges or long-term care needs. 

How to Talk to the Person You Choose

Having a conversation about a Power of Attorney doesn’t have to feel formal or heavy. In fact, the more open and honest it is, the better. 

Here are a few ways to start: 

• • Explain why you’re choosing them. Share your trust and appreciation; this is a compliment, not a burden. 
  • Be clear about your wishes. Talk about your financial preferences, medical treatment goals, and what matters to you. 
  • Give them room to say no. Being a POA is a responsibility. Ensure they feel comfortable in the role. 

It’s also helpful to share this information with your broader family so everyone is on the same page. Doing so can reduce confusion or conflict later on, especially in emotionally charged situations. 

You’re Not Alone in This Process

At The Retirement Planning Group, we help clients prepare every part of their estate plan, including choosing a Power of Attorney. While we don’t provide legal services, we work closely with trusted partners to ensure your POA is appropriately documented and integrated with your financial and legal goals. 

Ready to Take the Next Step? 

Choosing a Power of Attorney is a big decision, but you don’t have to make it alone. 

Whether you’re just starting your estate plan or want to make sure your current documents still reflect your wishes, our team is here to help you think it through. 

Schedule a quick 10-minute guidance call to talk through your questions and get clarity on next steps.