Selecting someone else to make financial decisions on your behalf might initially seem nerve-wracking or overwhelming, but it’s an important step to take in the process of estate planning. Before doing so, however, you need to think carefully about the person you intend to step into this role and educate yourself about what a fiduciary’s responsibilities are.
The first duty of a fiduciary is to only act in the person’s best interests. This means consideration about tactics and moves that help the person who created the power of attorney, not the agent or anyone else.
The second duty is to keep the person’s property and money separate. Comingling these funds only leads to problems and potential claims of fraud or undue influence.
The third responsibility for a fiduciary is the property and funds appropriately. It can be a good idea to consult with a financial advisor or estate planning lawyer to learn more about the best way to handle a situation like this.
The final responsibility for a fiduciary refers to keeping good records. In the event that there are questions from others about how the financial affairs are being managed, excellent recordkeeping can help to minimize conflict and protect a power of attorney agent. Good records can help to support funds that have been spent. This is particularly important when someone else is serving as a power of attorney agent for an elderly individual who has children or grandchildren who are concerned about management.
To learn more about choosing a power of attorney agent, consult with an estate planning attorney in Georgia today.