Robert, a successful business owner in his late 60s, has worked with the same financial advisor for nearly two decades. His estate plan is current, his investments are well managed, and his affairs are in order. When preparing his durable power of attorney, Robert names his eldest son, Daniel, as his agent. Daniel is responsible, financially sophisticated and close to his father.
Robert signs the document and moves on. He never thinks to introduce Daniel to his advisor.
A few years later, Robert suffers a stroke that leaves him unable to manage his finances. Daniel steps in, exercising the authority Robert granted him. He may now be responsible for managing accounts, paying expenses and making financial decisions on his father’s behalf. But Robert has never met the advisor who knows his father’s financial life best.
For financial advisors, this is an overlooked part of estate planning: the people designated to act under a power of attorney are potential future decision-makers in your client’s financial life.
