An agent, sometimes called an attorney‑in‑fact, is someone authorized to act on behalf of another person or a legal entity. In everyday life, agents show up in many forms: a literary agent negotiating a book deal, a lawyer negotiating an employment agreement, or a representative handling a licensing contract.
In estate planning, the concept is even more critical. You may need one agent for healthcare and another for finance, each empowered to act when you cannot.
Two essential documents in any estate plan are the Healthcare Directive (the “Directive”) and the HIPAA Authorization. These documents guide your chosen healthcare agent if you become incapacitated. The principal—the person granting authority—relies on the agent to step into their shoes and make medical decisions when they cannot. Because this role grants access to private medical information and the power to consent to or refuse treatment, the person you choose must be selected with great care.
Another vital document is the Durable Power of Attorney for Finance. Like the Directive, it becomes effective if the principal becomes incapacitated. This document authorizes the agent to make financial decisions, including dealing with banks, brokerage firms, real estate professionals, and even the IRS.
Many people assume their spouse is the natural choice. But that is not always the person best suited for the job. Below are key factors to consider when choosing your agents.
Factors to Consider When Choosing Your Agent
Emotional Fitness
Handling stress is a learned skill. Effective agents can set aside their emotions to make sound decisions, even under pressure. They must also be assertive enough to advocate for you. Sometimes, a non‑family member is the best choice.
Geographic Proximity
Ideally, your healthcare agent should live close enough to respond quickly in an emergency. Proximity is also helpful for your financial agent, who may need to meet with your bank or other institutions.
Willingness and Ability to Serve
Acting as an agent can be time‑consuming and emotionally demanding. Discuss expectations with your proposed agent and obtain their permission before naming them. Never assume someone is willing. If you are older, consider appointing a younger person who is less likely to face simultaneous health challenges.
Ability to Follow Your Wishes
Your agent must make decisions based on your preferences—not their own. Even if they disagree, they must honor your choices. Select someone who will respect your wishes and not go rogue.
People You Should Not Choose
Some states prohibit certain individuals from serving as healthcare agents. For example:
- Healthcare providers may be barred from acting as your agent, even if they are highly qualified.
- Minors are often prohibited from serving in this role.
Because state laws vary, it is essential to understand your jurisdiction’s rules before making your selections.
Final Thoughts
Choosing the right agents for healthcare and finance is one of the most important decisions you will make in your estate plan. These individuals may one day speak for you when you cannot speak for yourself. Select people who are capable, trustworthy, emotionally steady, and willing to honor your wishes. Thoughtful planning today protects your dignity, your values, and your peace of mind.
Call to Action
If you are unsure whom to choose—or if your current documents no longer reflect your wishes—now is the time to review your estate plan. Schedule a consultation with me to ensure your agents, documents, and intentions are aligned and up to date.
Francine D. Ward
Attorney-at-Law, Author, Speaker
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