Planning for incapacity or estate settlement is critical for everyone—but it can feel especially challenging if you don’t have children and your closest trusted relationships are the same age or older than you. As your Private Wealth Advisor, I want to share practical guidance on how to choose someone competent and reliable to serve as your successor trustee or power of attorney (POA).
Why This Decision Matters
Your trustee or POA will manage your finances, healthcare decisions, or both if you’re unable to do so. Without a spouse or adult children, you need to ensure:
- Competence: They understand financial and legal responsibilities.
- Availability: They can step in when needed—potentially for years.
- Longevity: They’re likely to outlive you or remain capable during your lifetime.
Challenges When Trusted Contacts Are Your Age or Older
- Health Risks: They may face their own health issues or cognitive decline.
- Timing: They might not be available when you need them most.
- Geography: Even if they’re willing, distance can complicate matters
Tips For Choosing the Right Person
Choosing the right person to manage your affairs—whether as a Power of Attorney (POA) or successor trustee—is one of the most important decisions in your estate and retirement planning. This individual will have significant responsibility, so it’s essential to look beyond convenience and focus on competence, trustworthiness, and long-term stability. Here are some practical tips to guide you in selecting the right person for the job.
1. Look Beyond Family
Consider younger relatives, nieces/nephews, or extended family.
Evaluate trusted friends who are significantly younger and financially responsible
2. Consider Professional Fiduciaries
Corporate Trustees: Banks and trust companies can serve as successor trustees.
Professional POAs: Some attorneys or fiduciary services specialize in acting as agents.
Pros: Expertise, continuity, and impartiality.
Cons: Fees apply, but often worth the peace of mind.
3. Evaluate Competence and Capacity
Do they understand financial basics?
Are they organized and detail-oriented?
Can they communicate effectively with professionals (attorneys, CPAs, advisors)?
4. Prioritize Stability
Choose someone with stable health and lifestyle.
No history of financial mismanagement.
Willingness to serve (always confirm before naming them).
5. Use Co-Agents or Co-Trustees
Pair a trusted friend with a professional fiduciary for checks and balances.
Example: A friend handles personal decisions; a corporate trustee manages investments.
Action Steps
Create a shortlist of candidates (individuals and professional options).
Interview professionals: Ask about fees, services, and continuity plans.
Document your wishes: Update your estate plan with clear instructions.
Communicate: Inform your chosen agents and provide copies of documents.
Hypothetical Example Scenario
Linda, age 72, never married and child-free, initially named her best friend (age 74) as POA. After reviewing longevity risks, she appointed a professional fiduciary as primary and her friend as backup for personal decisions. This ensures continuity and reduces stress for both.
Bottom Line
If you don’t have children and your closest relationships are peers, consider professional fiduciaries or younger trusted individuals. The goal is to ensure your financial and healthcare decisions are managed competently and consistently—so you can age with confidence.
Let’s talk about how to put the right plan in place. Give us a call today to schedule a confidential conversation about your options and ensure your wishes are honored.
Read more articles by Laura L Rehbein