How to Choose the Right Person for Your Power of Attorney

How to Choose the Right Person for Your Power of Attorney

Signing a power of attorney is the easy part. The hard part—the part that really matters—is deciding who to name as your agent. This person will have the legal authority to make financial or medical decisions on your behalf, and picking the wrong person can be just as dangerous as having no power of attorney at all.

What Your Agent Actually Does

When you sign a durable power of attorney in Texas, you're giving someone the legal right to act as if they were you—at least for the purposes spelled out in the document. Depending on what powers you grant, your agent might:

• Pay your mortgage and utility bills
• Access your bank accounts
• Manage your investment portfolio
• File your tax returns
• Sell or buy real estate
• Handle insurance claims
• Make gifts on your behalf (if the document allows it)

That's a lot of trust to place in one person. The Texas Estates Code requires your agent to act as a fiduciary, meaning they must put your interests above their own. But fiduciary duty only matters if the person takes it seriously.

Five Qualities to Look For

Not everyone is suited for this role. Here's what to consider:

1. Trustworthiness above all else. This seems obvious, but it's worth stating plainly. Your agent will have access to your money. Choose someone with a track record of honesty—not just someone you love.

2. Financial responsibility. If your brother-in-law has filed for bankruptcy twice and can't manage his own checking account, he's probably not the right choice for your financial power of attorney. Your agent doesn't need to be a CPA, but they should be comfortable managing money and keeping records.

3. Availability and proximity. Your agent needs to be able to act when the time comes. Someone who lives overseas or travels constantly might not be reachable during an emergency. Consider whether your agent lives close enough to handle in-person tasks—like visiting your bank in The Woodlands or meeting with your financial advisor.

4. Willingness to serve. Don't assume someone wants this responsibility. Have a direct conversation before you name them. Some people feel honored. Others feel overwhelmed. Either reaction is valid, and you need to know before you sign the document.

5. Ability to make tough decisions. For a medical power of attorney especially, your agent may need to make gut-wrenching choices. They should be someone who can stay calm under pressure and follow your stated wishes—even if those wishes are different from what they'd choose for themselves.

Common Mistakes People Make

At our firm, we've seen patterns in how people choose agents—and where those choices go wrong:

• Choosing the oldest child by default. Birth order doesn't equal capability. Choose the child who is best suited for the role, not the one who was born first.
• Naming co-agents without thinking it through. Naming two people to serve together sounds fair, but it creates practical problems. Both agents must agree on every decision, and banks and financial institutions often struggle with dual signatures. If you want two children involved, consider naming one as primary and the other as successor.
• Forgetting to name a backup. What happens if your first-choice agent can't serve? They might be traveling, ill, or unwilling when the time comes. Always name at least one successor agent in your document.
• Picking a friend instead of family. Friends can be excellent agents—but consider what happens to the relationship if money decisions get complicated. Family members often have more context about your life and values.

Should You Name a Professional?

In some cases, naming a professional fiduciary or a bank's trust department makes sense. This is worth considering if:

• You don't have family members you trust with finances
• Your family dynamics involve conflict or estrangement
• Your estate is large or complicated
• You want to remove the burden from family members

Professional agents charge fees for their services, but they also bring expertise and objectivity that family members may lack.

The Conversation You Need to Have

Once you've chosen your agent, sit down with them. Go over:

1. Where your important documents are kept
2. Who your financial advisors, accountants, and attorneys are
3. Your wishes and priorities—especially things that aren't written in the document
4. The names and contact information of your successor agents

This conversation is just as important as the legal document itself. An agent who doesn't know your wishes can't carry them out.

Get It Done Right

Choosing an agent is a big decision, but it shouldn't stop you from getting your power of attorney in place. We can help you think through the options and draft documents that protect you and your family.

Contact Dickey Law Group today to schedule a consultation. We serve families throughout The Woodlands, Spring, Conroe, and the Houston metro area. Call (832) 521-4414.