As Advisors, we're concerned with who our clients' power of attorney's are. During a recent appointment, however, we discovered the hurdles of being someone else's power of attorney just to answer simple questions.
What about when you're a loved one's power of attorney? Have you discussed their wishes with them? Are you up to making tough desicions without their input? If there's more than one POA, are you in agreeance about how to perform your duties and the decisions you may have to make?
There are different ways to establish POA's, as well as different types. Many banks or hospitals establish them directly on their account or when admitted, but are only applicable at that institution, you won't have authority over their finances or medical decisions in general. For that, they'll need to create a document with a lawyer giving medical and/or financial decision making power. That document can usually be used anywhere, but only within the scope of the authority given.
If you are a power of attorney, or one of several, are you up to the task? Will you be confident in making the right decisions? Have you been added to their records and/or accounts to avoid the hurdles so you can act quickly and efficiently? Where are those records and accounts held? Have you met their "team"... doctor, lawyer, accountant, financial advisor? Do you have a copy of the documents? These are just a few of the questions you should be able to answer as someone's POA.
Sit down with your loved ones. Discuss in detail what their wishes are and how they would make the decisions you may have to make one day. Make a plan for the "what ifs". Even if you feel prepared, let's sit down, review their circumstances and goals, and make a plan. We can meet with the other POA's and their "team" so everyone is on the same page going forward.