Table of contents:
Best Practices for Power of Attorney
Effective management of a power of attorney requires adherence to best practices that safeguard the principal’s well-being and prevent potential conflicts of interest. Communication, record-keeping, and accountability play crucial roles in ensuring responsible stewardship of the principal’s affairs.
Communication
Open and regular communication between the principal, agent, and other relevant parties is essential. The agent should keep the principal informed of all actions taken and decisions made on their behalf. This transparency fosters trust and accountability.
Record-Keeping
Meticulous record-keeping is paramount for maintaining an accurate account of all transactions and decisions made under the power of attorney. These records should be accessible to the principal and other authorized individuals, providing a clear audit trail for future reference.
Accountability
The agent has a fiduciary duty to act in the best interests of the principal. They must be held accountable for their actions and decisions. Regular reviews and audits by an independent third party can ensure transparency and prevent potential conflicts of interest.
