Choosing Your New York Power of Attorney 7 Red Flags We See All the Time

A Power of Attorney (POA) is an essential legal document that allows someone to act on your behalf in critical matters like financial transactions, legal affairs, or medical decisions. It’s a powerful tool that requires great trust, as the appointed individual will have access to sensitive aspects of your life and financial well-being. Given its importance, selecting the right person for the role should not be done lightly. In New York, there are several red flags to look out for when choosing your Power of Attorney. If you overlook any of these, you may end up regretting your decision.

Someone Who Is Too Eager for the Role

When it comes to choosing a Power of Attorney, one of the first things you need to ensure is that the person you select is willing and able to take on the responsibility. While you want someone who is ready to take charge when needed, it’s crucial that they are not overly eager to assume the role. A person who is too insistent or pushy about becoming your Power of Attorney could be doing so with ulterior motives, possibly looking to take advantage of your financial or personal situation. The individual you choose should be calm, composed, and ready to assume responsibility without appearing to seek it out for their own benefit. If someone seems too eager to step in without understanding the gravity of the role, it’s a red flag worth considering.

A Lack of Communication Skills

Good communication is the foundation of any successful relationship, especially when it involves the legal and financial aspects of your life. If the person you are considering to be your Power of Attorney has a history of poor communication, this could lead to issues down the line. You want someone who will keep you informed about decisions being made, act transparently, and be responsive to any concerns you have. If your potential Power of Attorney does not communicate clearly or is difficult to reach when you need them, it can create confusion and delay important actions that may affect your well-being. Therefore, ensure that whoever you select as your POA is someone who values clear and open communication.

Conflicts of Interest Could Jeopardize Their Actions

A Power of Attorney is meant to act in your best interests, not theirs. If the person you are considering for the role stands to benefit from the decisions they make on your behalf, it could create a conflict of interest. For example, if your POA is a family member who would gain financially from your will, investments, or healthcare decisions, their judgment may be swayed. It’s essential to choose someone who is not in a position to gain personally from your decisions and can make choices based solely on what’s best for you. Even if your POA is a trusted family member or friend, make sure that their personal interests will not interfere with their duty to you.

Financial Irresponsibility Can Be a Serious Issue

One of the most important aspects of a Power of Attorney is the ability to manage your financial matters. If the person you’re considering lacks financial responsibility, this could be a major problem. The POA will often be responsible for making decisions about your assets, investments, and income. Someone who is financially irresponsible or has a history of bad financial decisions, such as accumulating debt or engaging in reckless spending, may not be able to manage your affairs properly. When choosing your Power of Attorney, it is vital that the individual demonstrates a clear track record of responsible financial behavior and sound judgment in managing financial matters.

A Lack of Knowledge About Your Needs and Values

Your Power of Attorney should know your values, preferences, and priorities in order to make decisions that reflect your wishes. If the person you are considering does not have a deep understanding of what is important to you, they may make decisions that go against your desires or expectations. For instance, in healthcare matters, you may want someone who understands your medical preferences and end-of-life wishes. Similarly, for financial matters, it’s essential that the individual knows your goals, like whether you want to prioritize saving, investing, or donating funds. Ensure that your POA knows you well enough to make informed decisions that truly reflect your personal beliefs and goals.

Resistance to Oversight and Transparency

A trustworthy Power of Attorney will always welcome oversight and transparency. They should be willing to have their actions and decisions reviewed by trusted advisors, family members, or professionals if necessary. If your POA resists checks and balances, it could be an indication that they are not fully committed to acting in your best interests. An individual who is unwilling to be transparent or refuses to provide updates on the actions they’ve taken as your Power of Attorney could be hiding something. This lack of accountability could result in mismanagement of your affairs or even exploitation of your assets. Always select someone who is comfortable with periodic reviews and oversight to ensure your interests are being protected.

Inadequate Preparation and Understanding of the Role

One of the most significant red flags when choosing your Power of Attorney is selecting someone who is not adequately prepared for the role. The responsibilities of a POA are serious and can involve complex legal, financial, and healthcare decisions. If your potential POA has no experience or understanding of what is required, they may not be equipped to manage the situation when the time comes. It’s important that the individual you choose understands the full scope of the duties they are taking on. They should be organized, proactive, and willing to learn about the specifics of their responsibilities. If someone is unwilling to take the time to educate themselves about the role or is simply not prepared to handle it, you should consider another candidate.

What Should You Do Next?

Choosing a Power of Attorney is not a decision to be taken lightly. After reading about these red flags, you may realize that your initial choice is not the best one. It’s critical that you take your time and select someone who is trustworthy, capable, and prepared for the responsibility. If you’ve identified any of these red flags in someone you are considering, it may be time to reconsider.

At Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., we understand how important it is to make the right choices for your legal and financial affairs. Our experienced attorneys can assist you with drafting a Power of Attorney document that will meet your specific needs and protect your interests. Contact us today to schedule a consultation and ensure that your future is secure.

To learn more about this subject click here: Understanding Power of Attorney and Its Role in Estate Planning