Creating a Power of Attorney (POA) is one of the most important steps you can take to protect yourself and your loved ones as you age. In Louisiana, a POA allows someone you trust, called your “agent” or “mandatary,” to make decisions on your behalf if you are unable to do so. This can include managing your finances, making healthcare decisions, or handling legal matters.
However, with that power comes responsibility and risk. Choosing the right agent isn’t just a matter of trust. It’s a legal and financial decision that can impact your well-being, estate, and peace of mind. At Losavio & DeJean, we help clients across Louisiana understand how to select the right person for this vital role.
Understand the Role of a Power of Attorney Agent
In Louisiana, a Power of Attorney can be general (broad authority) or limited (specific duties), and it can be “durable,” meaning it remains effective if you become incapacitated. When you name someone as your agent, you are giving them legal authority to act in your place for matters outlined in the document.
Depending on the scope, your agent might:
- Pay your bills
- Access your bank accounts
- Manage your property
- File your taxes
- Make healthcare decisions (if authorized)
This is a position of great trust. A poor choice can lead to financial mismanagement, family disputes, or even elder abuse.
Qualities to Look for in a Power of Attorney Agent
Trustworthiness
Your agent should be someone with a strong moral compass and a proven track record of handling money and duties responsibly. This is often a close family member, but it may not always be the case. Sometimes a trusted friend or professional is a better fit.
Financial and Organizational Skills
Your agent will likely be managing accounts, paying bills, and making time-sensitive decisions on your behalf. Choose someone who is organized, detail-oriented, and financially savvy enough to follow through on commitments.
Availability and Proximity
An agent should be reasonably available to act when needed. While someone across the country can serve, having an agent nearby can simplify matters in urgent situations, especially when it comes to healthcare decisions.
Ability To Communicate and Handle Stress
Your agent may need to interact with doctors, banks, lawyers, and family members. Choose someone who communicates effectively, remains calm under pressure, and is unlikely to be easily swayed by family dynamics or emotions.
Willingness To Serve
Not everyone is comfortable with the responsibility of a Power of Attorney. Be sure to have an honest conversation with the person you’re considering and confirm that they’re both willing and capable of serving in this role.
Legal Obligations and Pitfalls To Avoid
An agent in Louisiana has a fiduciary duty to act in your best interest, avoid conflicts of interest, and keep accurate records of their actions. If they misuse funds, make decisions based on self-interest, or act outside the authority you’ve granted, they could be held legally accountable.
Here are some common mistakes to avoid:
- Choosing someone based solely on family ties: Just because someone is a child or sibling doesn’t mean they’re the best fit.
- Failing to name a backup agent: If your first choice becomes unable or unwilling to serve, a successor agent ensures continuity.
- Granting overly broad powers: Tailor the POA to your specific needs. Giving unlimited authority can invite problems.
- Not updating the document: Life changes (divorce, death, or relocation) may require a change in agents.
Protect Yourself and Your Future. Contact Us Today
The Power of Attorney is a powerful tool, but only when wielded by the right hands. At Losavio & DeJean, we guide clients through this deeply personal process with care and legal precision. We can help you assess your needs, select the right agent, and create a Power of Attorney that protects your interests now and in the future.
Contact us today to schedule a consultation and get peace of mind knowing your affairs are in trustworthy hands.