Estate Planning Tips: How to Pick POAs, Health Surrogates and Trustees
Before you add to your estate planning documents the names of the people you want to carry out your wishes, consider these tips.


Death and incapacity are hard topics to discuss and even more difficult to plan for. We would like to think the good times will go on forever. However, we know that is not reality. To help with the challenging decisions of who to choose to represent us, here are some estate planning tips.
Both death and incapacity, to some extent, will reach many of us at some point in our lives. Therefore, we need to make the appropriate preparations, which entails completing our estate planning documents. The most common and important documents are the last will and testament or trust, power of attorney and health care directive. For my clients, one of the most difficult parts of the process is selecting the correct representative to serve in each role. Below are some considerations to take when selecting representatives to each of these positions.
Power of Attorney
As we grow older, we become less able to manage our own affairs. A power of attorney appoints a representative(s) to handle our affairs for us on a broad scale. It is a very powerful document, and the obvious primary concern is appointing someone you trust. Remember, most likely you will not be completely competent when it is necessary to use this document, so appointing an individual(s) you trust is paramount.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
It is also advisable to select someone who lives in close proximity to you. Handling someone’s affairs from a distance can be difficult. It is really a hands-on experience, so if you can appoint someone close to you, that would make the job easier and more effective.
Finally, I always advise my clients to appoint multiple powers of attorney who can act independently of one another. There is a lot of work that is involved in managing a person’s affairs. It might be too much for one person who also has their own life to manage. I find it works better if the work is spread out among multiple people so not any one person feels too overwhelmed.
Health Care Directive
This document appoints someone to make a medical decision for you if you are unable to do so yourself. Most everyone appoints their spouse as the primary person to make that decision.
The real question becomes who to appoint as the successor representative(s). If you are fortunate enough to have a person in the health care field as a family member, then the choice may be an easy one. For the less fortunate, it should be a compassionate person with the skills necessary to be able to discuss your situation with treating physicians and make the right decision on your behalf.
This is not the time for a committee, so I recommend picking a succession of individuals instead of having co-representatives. Having more than one agent could cause an issue if they both do not agree on the best way forward.
Personal Representatives and Trustees
Most likely a spouse will be the primary appointment, whether that be as a personal representative under a will or a trustee of a trust.
If you have chosen to complete a will document, it is best to discuss your alternate choice with an attorney before making a selection because restrictions on appointment can vary from state to state. In Florida, an out-of-state resident cannot be a personal representative unless they are related to you. Many states have similar restrictions.
Trusts do not have such restrictions. If you are a high-net-worth individual and have a more sophisticated estate plan, you might want to consider the services of an independent fiduciary, such as those provided by a bank or other trust advisory institution. If you don’t fall into the high-net-worth category, then you may want to consider these options when making your selections.
Distance or proximity to you or your home state should not be a factor. Today, out-of-state agents can operate just as easily as in-state alternatives. A majority of probate and trust administration can be handled electronically, so physical presence in the state of the decedent is not necessary.
You need to select an individual who not only has the aptitude, but the time to perform the administration that you are going to require. Time is a key factor because there is a significant amount of work involved in every estate.
Finally, since most estates involve handling money and assets to a certain extent, you must appoint someone with the morals to fairly carry out your objectives.
There are unique characteristics to consider when selecting a representative(s) for the different roles outlined above. It is imperative to select the right agent that fits each unique position. They may be the same person or different people as your situation dictates. Keep the above factors in mind when making your decision, and you will be on the right track.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Richard Ricciardi is an estate planning attorney and partner at Powell, Jackman, Stevens & Ricciardi, P.A. in Fort Myers, Fla. Richard obtained his Master of Laws Degree in estate planning and elder law, which required extensive additional education tailored specifically to advanced issues in estate planning, including business succession planning and taxation issues affecting estate transfers. Richard represents clients with a variety of debt issues, personal representatives, trustees, beneficiaries in probate or trust administration and singles and couples in preparing estate planning documents.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.