A proper estate plan is important to determining the distribution of a party’s assets. However, the right estate plan in the wrong hands can still spell trouble.
Selecting the party who will fulfill your wishes for you when you are not able to is not a decision to take lightly. There are a few key considerations to make sure you choose your power of attorney wisely.
The right type
The party you select for your power of attorney should depend upon the duties you plan for the party to fulfill. There are a few types of power of attorneys to select from, including:
- General
- Durable
- Contingent
- Limited
You may choose to have one party serve as the power of attorney in different capacities, such as your spouse, or you may select different people for different duties. For example, if you believe carrying out your medical wishes may be difficult for your spouse, you may designate your spouse as a general power of attorney and designate another party as your durable or contingent power of attorney.
Requirements
A power of attorney must meet the standards of the state in order to fulfill the position. If the state decides that a power of attorney is unfit, the court will appoint a different party to the position. Therefore, becoming familiar with the requirements is key as a testator.
Character
The character of your power of attorney is a critical consideration in determining the best party for the job. You should focus on selecting someone who understands and respects your wishes, and who will diligently execute your estate plan. It may help to make sure that your power of attorney has some business knowledge as well.
These are a few key considerations to aid in making your decision. Taking these things into account, along with your own specific desires, can help you to make an informed, wise decision.
