In setting up your estate plan, you'll be asked to name a number of fiduciaries to act on your behalf in various situations. One such fiduciary will be your "attorney in fact" named in your Power of Attorney. In addition to selecting your first choice, you should also name one or more backups just in case your first choice isn't available to serve.
Factors to Consider When Choosing Your Attorney in Fact
Your attorney in fact will be responsible for managing your finances, paying your bills and signing important legal documents. Factors to consider when choosing your attorney in fact include the following:
- How old is the potential attorney in fact? As with your health care agent, all states require an attorney in fact to be an adult, either over 18 or 21 depending upon your state's laws. Note that even if the potential attorney in fact is your own child, if the child is under the age of 18 or 21, he or she won't be allowed to serve.
- Where does the potential attorney in fact live? If the attorney in fact lives across the country or in a foreign place, then it may difficult for the attorney in fact to take care of your finances from such a distance.
- How busy is the potential attorney in fact? If the attorney in fact has a demanding job or travels frequently for work, then he or she may not have the time to take care of your finances and legal matters.
- How good is the potential attorney in fact with managing money? If the potential attorney in fact has trouble managing his or her own finances, then it probably won't be a good idea for you to appoint him or her to manage your money.
- Does the potential attorney in fact have a particular expertise in financial and/or legal matters? If the attorney in fact works in the financial field as banker, agent or advisor, or in the legal field as an attorney or paralegal, then he or she may be a better choice than someone who doesn't have this work experience.
- How organized is the potential attorney in fact? The attorney in fact will need to be extremely organized in order to be able to keep track of all of your assets, pay all of your bills, and balance your checkbook, in addition to being able to manage his or her own finances and legal affairs.
