Blog Layout
Avoiding a Family Feud When Choosing a Power of Attorney
Aug 03, 2019
“Deciding who gets the power of attorney is an important step for parents looking to organize their estate and plan for a future without them.”
The challenge in tasking a family member or trusted friend is not just making sure they have the necessary skills, but to navigate family dynamics so that no fights occur says Considerable.com
in the article “How to assign power of attorney without sparking a family feud.”
Every family situation is different, but in almost all cases, transparency is the best bet.
Start by understanding exactly what is meant by power of attorney, how it functions within the estate plan and how siblings can all be involved to some degree with the family’s decision-making process.
Power of attorney is a term that gives an individual, or sometimes, individuals, the legal authority to act on behalf of someone else. It is usually used when a person, usually a parent or a spouse, is unable to make decisions for themselves because of illness or injury. It must be noted that power of attorney relates to financial and legal decisions. There are methods to address making decisions for another person for their health care or end-of-life decisions, but they are not accomplished by the power of attorney (POA).
It should be noted that there is a distinct difference between power of attorney and executor of the estate. Power of attorney is in effect while the person who has granted the authority is alive, but unable to act on their own behalf. The executor of the estate assumes responsibility for managing the estate through the probate process. While they are two different roles, they are often held by the same person, usually an adult child who is responsible and has good decision-making skills.
There are different types of power of attorney roles. The most common is the general power of attorney, followed by the health care or medical power of attorney. The general power of attorney refers to the person who has the authority to handle financial, business or private affairs. If a parent grants power of attorney to one of their children, that child then has the authority to act on behalf of the parent.
Trouble starts if the relationship between siblings is rocky, or if major decisions are made without discussions with siblings. Start a discussion so your family will all begin rowing your boat in the same direction.
It’s not easy for siblings when one of them has been granted the power of attorney. That means they must accept the inherent authority of the chosen sibling to make all decisions for their parent. The sibling with the power of authority will have a smoother path, if they can be sensitive to how this makes the others feel.
“Mom always liked you best,” is not a sentence that should come from a 50-year-old, but often childhood dynamics can reappear during these times.
Remember that the power of attorney is also a fiduciary obligation, meaning that the person who holds it is required to act in the best interest of the parent and not their own. If the relationship between siblings is not good, or there’s no transparency when decisions are made, things can get bumpy.
Here are some tips for parents to bear in mind, when deciding who should be their power of attorney:
- Understand the great power that is being given to another person.
- Make sure the person who is to be named POA, understands the entire range of responsibilities they will have.
- The siblings who have not been named will need to understand and respect the arrangement. They should also be aware of the potential for problems, keeping their eyes open and being watchful without being suspicious.
Some families appoint two siblings as a means of creating a “checks and balances” solution. This can be set up, so the agents need to act jointly, where both agree on an action, or independently, where each has the full authority to act alone. In some cases, this will lessen the chances for jealousy and mistrust, but it can also prolong the decision-making process. It also creates the potential for situations where the family is engaged in a deadlock and important decisions don’t get made.
Parents should discuss these appointments with their estate planning attorney. Their years of experience in navigating family issues and dynamics give the attorneys insights that will be helpful with assigning these important tasks.
Reference:
Considerable.com
(July 10, 2019) “How to assign power of attorney without sparking a family feud”
Stop saying “we really need a Will!” and start making your plan in a few simple steps.
“In the next few months, thousands of northerners — so-called “snowbirds” — will escape their snowy, cold climates to spend the winter in warm, sunny spots in the southern or western part of the United States.”
When names change, executing documents with the person’s prior name can become problematic. In estate planning documents, where there are risks about being able to make decisions in a timely manner or to mitigate the possibility of an estate challenge, a name change to update documents is an ounce of prevention.
Even if you have taken good care of your finances over the years, adding a child to the family can change your financial situation significantly. This is why experts recommend parents begin planning for their financial security as soon as possible. Here are a few tips for parents on how to get started with financial planning.
With hurricanes, tropical storms and wildfires becoming routine events, data from the National Poll on Health Aging suggest that older adults, loved ones and their care providers should take time to prepare for how they will cope and communicate in an emergency. The question is not if something will occur, but when. Having a plan in place for disaster is important for seniors. So is having an estate plan, to prepare for life’s unexpected occurrences. If you don’t have an estate plan, speak with an estate planning attorney soon to have a will, power of attorney, healthcare proxy and other planning documents in place.
“If you’ve ever spent time working through your estate plan with a professional, you know how important it is to select and update your beneficiaries. Failing to do so can result in costly mistakes—for you and your loved ones.”
“While it’s not something many people think about until faced with the issue, obtaining a credit report for a deceased person is important. You may need to make sure the credit report is accurate and take stock of any creditors you need to notify of the death or see if there’s any unresolved debt that you’re not aware of.”
Nothing is Certain but Death and Taxes “Most of us have heard the quote from Benjamin Franklin, ‘In this world, nothing is certain except death and taxes.’” No one actually enjoys paying taxes, and few of us really want to think about our own death, but both require advance planning...
“The best way to ensure that they know and understand your wishes, is to take a copy of your advanced healthcare directive or living will with you to your next check up and talk to your physician about it, then ask them to keep the copy on file.” Everyone needs...
“One of the great things about being retired is that you no longer have a job tethering you to a particular location. You have the freedom to move. However, just because you can pick up and go, doesn't mean it's a good idea to go just anywhere.” Sometimes having too...