If you have ever flown in an airplane, you must have heard the pre-flight announcement, “put on your own oxygen mask before helping others in the event of an emergency.” The idea behind this warning is that you cannot help others if you cannot help yourself. Similarly, the same principle applies to agents acting under Power of Attorney documents. If you are currently serving as someone’s agent, considering accepting the appointment, or if you are merely curious about what the agent’s role entails, this article is for you.
A power of attorney (POA) creates a legal relationship between a principal (the person signing the document) and an agent (the person nominated to act for the principal). There are two types of POA under Oklahoma law. The first type is called the Durable Power of Attorney (DPOA), and it authorizes the agent to make decisions regarding the principal’s property. The second type is called the Health Care Power of Attorney (HCPOA), and it authorizes the agent to make decisions regarding the principal’s health care.
Serving as someone’s agent under the DPOA is a great privilege. Indeed, if you were named as an agent, the principal must have had great confidence in your integrity and ability to give you the power to step into the principal’s shoes. In the immortal words of Uncle Ben, with great power comes great responsibility. Finding a way to balance your own ability to handle multiple aspects of someone else’s life all while keeping up with living your own life is vital. To aid you in putting on your own oxygen mask first, here are a few steps designed to help you help your principal both responsibly and effectively:
1. Guidance. Prior to taking any major steps as someone’s agent, consult with an attorney about your duties, responsibilities, and liabilities under the DPOA and state law. Knowing what you can and cannot do as an agent is essential to fulfill your duty to the principal. While all you initially need is integrity and willingness to act on the principal’s behalf, you may be required to make decisions about the principal’s investments, taxes, or assets that may necessitate the expertise of non-legal professionals. To do so, do not hesitate to reach out to the principal’s existing advisors (if known) or someone you trust with financial matters. Either way, it is okay to ask for help in the event you do not feel equipped to address the situation on your own.
2. Organization. Staying organized benefits you by giving you peace of mind that necessary things are not being missed and by protecting you in case your decisions are ever called into question. Staying organized involves:
· Identifying the principal’s assets and keeping documentation up-to-date,
· Compiling a to-do list and a plan to execute it,
· Keeping track of due dates,
· Keeping records of any expenditures made on the principal’s behalf,
· Keeping your personal finances separate from the principal’s.
3. Communication. You should communicate as much as possible with the principal about your actions as their agent. Additionally, as you step into the principal’s shoes when contacting any third-party entities, make sure these third parties are aware of your role as an agent. Providing documentation of the DPOA to third parties should give you the recognition and authority to act on the principal’s behalf and address any pressing matters as soon as they arise.
4. Loyalty. The duty of loyalty requires that you step into the principal’s shoes when you make decisions as their agent. In other words, before making a decision you should ask yourself “What would the principal do under the circumstances?” If it is difficult to decide what the principal would do, exercise your own judgment with the principal’s best interest in mind.
Being someone’s agent can be both demanding and rewarding. Take care of yourself and remember to ask yourself periodically, “Do I have my oxygen mask on?”
