What to Do If You’ve Been Named as Power of Attorney

Being named as someone’s Power of Attorney (POA) is an act of trust — and it comes with serious responsibilities. Whether you’ve been appointed to handle financial decisions, healthcare choices, or both, it’s important to understand what’s expected of you and how to prepare before you’re called to act.

Step 1: Review the Power of Attorney Document

The first thing you should do is review the Power of Attorney document carefully. Not all POAs are the same. You’ll want to confirm:

• When the document becomes effective. Some powers of attorney take effect immediately, while others — known as “springing” powers — only become active if the principal becomes incapacitated. Under the North Carolina Uniform Power of Attorney Act (Chapter 32C), a POA is durable by default unless the document states otherwise — meaning it remains effective even if the principal later loses capacity.
• What authority you’ve been given. Are you authorized to handle financial transactions, make healthcare decisions, or both? Understanding the scope of your authority will ensure you act within your legal limits and the principal’s intentions.

If possible, talk through these details with the principal directly so everyone is aligned on how and when you can act.

Step 2: Understand the Principal’s Wishes

Once you know your responsibilities, take time to learn the person’s wishes. Open communication helps you make decisions that truly reflect what they want — not just what seems reasonable in the moment.

For a healthcare power of attorney, this may include discussing:

• End-of-life preferences and treatment options
• Hospital or care facility preferences
• Organ donation wishes

For a financial power of attorney, be sure to understand their financial landscape. You’ll need to know:

• Where bank and investment accounts are located
• How to access essential financial information
• What recurring expenses, tax obligations, or debts exist

Knowing what matters most to the principal — and how to manage their affairs effectively — will make your authority meaningful, not just symbolic. If no POA is in place and a loved one becomes incapacitated, the alternative is often a court-supervised guardianship proceeding, which is far more time-consuming and costly for everyone involved.

Step 3: Know Where to Find Key Documents

In an emergency, access matters. Make sure you know where all critical documents are stored, including:

• The original Power of Attorney document
• Healthcare directives and advance directives or living wills
• Account information, deeds, insurance policies, and passwords

Keeping a secure, organized record of this information ensures you can act swiftly and confidently if the time comes. A POA that exists but can’t be located when it’s needed is a plan that can’t be executed.

A Trusted Role in Protecting a Legacy

Serving as a Power of Attorney is more than paperwork — it’s a promise to uphold someone’s wishes and protect their well-being or financial security. By familiarizing yourself with the scope of your role and the principal’s priorities, you can make informed, compassionate decisions when they matter most.

A well-drafted POA is also one piece of a broader estate plan. If you or a loved one need help setting up a Power of Attorney or reviewing an existing one, contact us to schedule a free Discovery Call. Our personalized approach ensures your documents are drafted correctly and that your wishes are clearly documented from the start.

Call our office at 919-659-8433 or schedule directly at your convenience: calendly.com/caryep/discovery-call-get-started-cep-blog