Overview, Best Practices, & Limitations

This article explores power of attorney and answers whether a nonfamily member can serve in this role. It provides an overview of best practices for selecting the right person, what powers and duties they can and can't perform, as well as insights into the selection process, and potential pitfalls. Find out all you need to know about appointing a nonfamily member as power of attorney, including best practices for choosing the right person, and what they can and can't do.

The ability to appoint someone you trust as Power of Attorney (POA) is an important legal arrangement for individuals, families, and businesses. A POA is an individual who you appoint to manage your financial and legal affairs if you are unable to do so yourself. As part of estate planning, it is also wise to appoint a POA in advance to help manage your financial and legal decisions should you become unable to do so for any number of reasons; however, when appointing a POA, it is important to understand who you can and cannot appoint.

When considering who to appoint as a POA, the important question of “can a non-family member be Power of Attorney?” arises. The answer to this question is yes, but there are some very important considerations which should be taken into account. In order to make an informed decision and best protect your interests, consider the following five points when selecting a Power of Attorney:

1. Trustworthiness – Obviously, trustworthiness is key. A POA needs to be an individual that you can trust to handle your affairs responsibly and you should never appoint anyone who you would hesitate to trust with your hard-earned money and legal documents.

2. Availability – You need to appoint someone who you know will be available to perform the duties and responsibilities of a POA.

3. Dependability – A Power of Attorney is responsible for making decisions and you need to choose someone who is dependable, can be trusted to make the right decisions for you and is able to properly handle your affairs.

4. Motivation – A POA should have the right intentions, so be sure to choose someone who will stay motivated and not neglect the responsibility of managing your affairs for whatever reason may exist.

5. Knowledge – It is important to select someone who has the necessary knowledge to properly handle the responsibilities involved with a POA.

These five considerations are important when selecting a Power of Attorney, regardless of whether or not the individual is a family member. It is important to remember that a POA is a legal position, not a familial one, so technically there are no restrictions on who can be appointed to serve as a POA. However, it is recommended to appoint someone who understands the legal issues involved and has a clear idea of the responsibilities.

More specifically, a POA has the legal right to handle the financial and legal situations of their client, including making decisions in regards to investments, and banking and bill paying. They can also make legal and medical decisions on their client’s behalf, depending on the scope of control specified in the power of attorney.

Once appointed, a POA is subject to both state and federal laws. Some important considerations to ensure protection of the rights of the client include informing any interested parties of the appointment, such as transactions or property management services, always making decisions in the best interests of the client, and remaining impartial and unbiased. Furthermore, any document which has the name of the POA should also include the name of the client to ensure proper documentation.

In conclusion, a non-family member can be Power of Attorney; however, it is important to ensure that the individual being appointed is trustworthy, dependable, available, motivated, and knowledgeable about the responsibilities. As long as the POA follows the laws and ensures that the client’s best interest is highly revered, then a non-family member can be appointed as Power of Attorney.