Power of Attorney
Q. Because it isn’t as easy for me to get around any more, I find it hard to take care of all my business matters, but I’m nervous about getting help. Once I give power of attorney to someone, do I lose the ability to control my financial transactions?
A. You don't have to relinquish all of your affairs — you may need help only with monthly bill-paying or arranging for health care or some other limited aspect of your daily living. Powers of Attorney can be drafted for very specific purposes and need not cover all aspects of your affairs.
A child or younger relative may be able and willing to assist you, or you may be more comfortable with working with your CPA, attorney, bank or investment firm trustee. The best course is to sit down with a knowledgeable friend, trusted advisor or relative and frankly discuss your needs and concerns so that you can come up with a satisfactory plan of action.
Q. I need to make some changes to an estate plan, but my husband, who's in poor health, is no longer able to participate in making decisions. What should I do?
A. If your estate plan includes a will or a living trust, you should see an attorney about making changes. If you have not already done so, you may also want to secure durable powers of attorney for both health care and financial affairs. These allow you legally to make decisions in these areas on your husband's behalf. A properly structured trust will have provided for selection of alternative trustees should one be unable to serve, but you will want to make sure that this has been taken care of. You should also make sure you have provided for continuity of management of your estate in the event that you, too, are disabled or otherwise unable to fulfill the duties of trustee.
Q. Since my spouse died after a complicated surgery, I’ve realized the importance of establishing a power of attorney for healthcare. But since my only daughter lives out of the country, would she be a good choice for power of attorney? If not, who would?
A. As I’ve said in the past, establishing a power of attorney for healthcare is an important part of long-term planning. It designates a representative to carry out your wishes for medical measures to be taken should you become too ill to make these determinations yourself. However, it would probably not be a good idea for you to grant a power of attorney for healthcare to a child out of the country unless you are fairly sure that s/he would come to your bedside in a timely manner if you become injured or seriously ill. The health care decisions that need to be made are usually of a life-or-death nature and might be difficult to make from a long distance away.
It will probably not be easy to find someone who will accept the responsibilities inherent in this specialized form of power of attorney. You want a person you know and trust and someone who knows your wishes. Perhaps you might approach a very close friend or long-time advisor such as your attorney, minister or rabbi. This decision, like other estate-planning matters, should be carefully thought out and discussed with your loved ones before making a final decision.