One important step in estate planning as a Connecticut resident gets older is to designate an attorney-in-fact to handle one’s financial and business affairs.
While technically the document which designates an attorney-in-fact is called a power of attorney, many people refer informally to the person who will handle financial and business affairs as the “power of attorney” as well.
With a valid power of attorney document, the attorney-in-fact will have the authority to access a person’s financial records. They will have the authority to handle most if not all business decisions ranging from paying the bills and managing routine transactions to more significant decisions like investing funds.
The authority of the attorney-in-fact can continue even if the person who created the power of attorney document is no longer capable of handling their own finances.
This makes a power of attorney useful in many ways. The document could even head off the need for a formal court proceeding called a conservatorship.
How should I choose my attorney-in-fact?
The right attorney-in-fact will vary depending on a New Haven Country resident’s circumstances. Who one can trust to handle such an important job is really the key question.
Still, there are a few points to consider:
- A person should think about whether the one they choose as attorney-in fact has the ability and the character to do a good job. However, they also need to think about whether the would-be attorney-in-fact has the time and the willingness to handle the role. They also should explore whether that person will be able to continue to serve in the long term.
- The attorney-in-fact will have to work with and get along with others, particularly siblings, adult children, or other relatives.
- The attorney-in-fact can be, but does not have to be, the same person as one’s estate executor or trustee.
- It is possible and even advisable to appoint a backup attorney-in-fact if the first choice is not able or willing to serve when the time comes.
- It is also possible to appoint multiple attorneys-in-fact. In this situation, people should keep in mind that they need to think about how to minimize conflict and ensure that decisions can be made quickly and simply.
- An attorney-in-fact often is but does not have to be a trusted friend or family member. Sometimes, it may be better to nominate a neutral professional to serve. On the flip side, these professionals will charge fees for their work.
A person should discuss their decision with an experienced estate planning attorney as well as other trusted individuals.