How to Choose Your Power of Attorney When You’re Remarried
Should you appoint your new spouse or a child from your previous marriage? It all comes down to who will make the best decisions that are right for you.
![Paperwork that says power of attorney across the top.](https://cdn.mos.cms.futurecdn.net/VWZUxb3urKibCXiLKNJod-415-80.jpg)
Getting divorced and remarried is a pretty common occurrence. Consider:
- 35% to 50% of first-time marriages end in divorce, according to data from the World Population Review
- 64% of men and 52% of women remarry, a Pew Research Center analysis found
Remarrying can bring about a lot of change for everyone involved, especially when planning and updating your estate. And designating a power of attorney is a key element of your estate plan.
A power of attorney, or POA, is a legal document that gives another person, also known as an agent, the legal authority to make decisions on your behalf should you become unable to do so. When it comes to your finances, this person can access your financial accounts to pay bills, file taxes on your behalf, make investment decisions and apply for public benefits such as Medicaid.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
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.
Choose someone you trust
Given all this power, it’s imperative that you choose someone you trust. For most people, that person is a spouse or a family member. Legally, the agent must be over the age of 18. However, this decision can become increasingly difficult when family dynamics change. If you’re stuck trying to decide if you should designate your new spouse or your children from a previous marriage, there are a number of factors you’ll want to keep in mind.
First and foremost, your agent must be financially responsible and have the ability to manage your finances. You should feel confident that this person will act in your best interest. If you know your new spouse is an overspender, they may not be the best choice. Similarly, if your child frequently misses payments or has poor credit, you may want to reconsider.
Next, you’ll want to figure out what decisions your power of attorney can make. Do you plan on giving them access to manage your bank accounts or pay bills? Do you trust them to make investment decisions if necessary? It’s important to note that your agent can also make decisions beyond your finances if you give them permission to. These include medical decisions, such as treatment or end-of-life care, as well as decisions about where you’ll live when you get older. Figuring out what powers are most important to you can help you make your choice.
Can they effectively handle conflict?
Another important factor to consider is your agent’s ability to handle conflict and communicate effectively. You want to be confident that this person can navigate complex family dynamics and resolve any conflicts as needed. This person should also have good communication skills. They need to be able to communicate the decisions they are making on your behalf to the rest of your family. So, if your new spouse and children don’t have a good relationship with each other and other members of your family, you’ll want to choose someone who does.
Finally, you’ll want to consider where your potential agent is located. This may seem like a no-brainer if you’re considering choosing your new spouse. But if your children live in a different state, the distance could make things difficult — especially when it comes to decisions that need to be made in a timely manner. If you’re experiencing a medical or financial crisis, you can’t afford to wait for your agent to travel to you. Picking someone close ensures your agent is fully present, increasing their ability to make decisions that are in your best interest.
Power of attorney is a big responsibility
Choosing a power of attorney is not an easy process. Whoever you choose will have an immense responsibility over your life should you become unable to manage decisions on your own. Be sure to take your time with this decision and talk to your family. It’s important that the person you’re considering as an agent is comfortable and able to fulfill the responsibilities you’ve given them under your estate plan.
This decision is one that only you can make, so you want to be confident in your choice. Although it can be a difficult conversation, be sure your loved ones are included in this process so that everyone is on the same page and has a clear understanding of your wishes.
It’s also worth consulting with a financial adviser or estate lawyer. They can help address any concerns or questions you may have while making sure your estate plan is up to date.
Kelsey Simasko is an investment advisory representative of and provides advisory services through CoreCap Advisors, LLC. Simasko Law is a separate entity and not affiliated with CoreCap Advisors. The information provided here is not tax, investment or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Related Content
Get Kiplinger Today newsletter — free
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.
Kelsey Simasko is an associate attorney at the Simasko Law firm, where she specializes in Elder Law and Wealth Preservation. She follows in the footsteps of her late grandfather, Leonard J. Simasko, who started the firm in 1955, as well as her uncle, James M. Simasko, and father, Patrick M. Simasko — partners of the Simasko Law firm.
-
Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
By Joey Solitro Published
-
Another Analyst Moves to the Sidelines on Tesla Stock After Earnings
Tesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
By Joey Solitro Published
-
Confused by Annuities? Making Sense of the Different Types
Many investors aren't sure if annuities are a good option for meeting financial goals. Let's look at the different categories, along with their pros and cons.
By Kris Maksimovich, AIF®, CRPC®, CPFA®, CRC® Published
-
Talkin' 'Bout My Generational Wealth: Baby Boomers
With retirement, each generation has different priorities and challenges. For Baby Boomers, it's a matter of ready or not, here it comes.
By Alvina Lo Published
-
How to Avoid a Big Hassle if Your Financed Car Gets Wrecked
How an insurance check is made out for repairs can cause a world of problems if the lienholder is left out.
By H. Dennis Beaver, Esq. Published
-
Estate Planning Strategies to Consider as Election Nears
Are big changes in tax laws coming soon? Not likely, but you might want to take advantage of higher estate and gift tax exemptions well before the end of 2025.
By David Handler, J.D. Published
-
How to Get Your Money's Worth From Your Financial Adviser
A good financial adviser will focus on how your financial planning and investment strategy align with your lifestyle and aspirations.
By Pam Krueger Published
-
Think of Prenups and Postnups as Financial Planning Tools
These contracts provide a clear framework for asset management and protection and are especially useful if you get married later in life.
By Andrew Hatherley, CDFA®, CRPC® Published
-
Congratulations on Your Raise: Three Things to Do With It
We're not saying you shouldn't spend it on a new car, but there are some considerations to guard against lifestyle creep and to help ensure a comfy retirement.
By Andrew Rosen, CFP®, CEP Published
-
Check Off These Four Financial Tasks to Finish 2024 Strong
The new year is a popular time to set financial goals, but now is the ideal time to check how you're doing. Four tweaks could make a big difference.
By Daniel Razvi, Esquire Published