When someone cannot manage their financial or personal affairs due to illness, injury, or cognitive decline, the court may appoint a legal guardian to take over decision-making. While guardianships are important in protecting vulnerable individuals, they can also be restrictive, expensive and challenging. A properly executed power of attorney provides an alternative, allowing individuals to maintain control over who will act on their behalf if they become incapacitated.

Wendy Williams and the Risk of Unwanted Guardianship

The case of television personality Wendy Williams has drawn national attention to the complexities of guardianship. Williams has expressed frustration with her court-appointed guardianship, stating that it feels like "prison" and limits her ability to make her own choices. Her situation highlights the importance of planning to avoid court intervention and ensure that personal and financial matters are handled according to one's wishes.

What Is a Power of Attorney?

A power of attorney is a legal document that allows one person, known as the agent or attorney-in-fact, to make financial, medical, or legal decisions on behalf of another person, known as the principal. The principal can grant broad or limited authority to the agent and can revoke the document at any time they remain mentally competent.

There are different types of power of attorney, each serving a distinct purpose:

• Financial power of attorney: allows the agent to manage the principal’s finances, such as paying bills, handling investments and managing property.
• Healthcare power of attorney: gives the agent authority to make medical decisions if the principal cannot.
• Durable power of attorney: Maintain the authority of powers of attorney even when the principal becomes incapacitated, ensuring that financial and healthcare matters remain managed.

How Power of Attorney Helps Avoid Guardianship

Without a power of attorney, family members may have to go to court to request guardianship if their loved one becomes incapacitated. This process can be costly and time-consuming, often resulting in a judge appointing a guardian who may not be the person the individual would have chosen. A power of attorney eliminates this uncertainty by allowing individuals to designate their preferred decision-maker in advance.

Maintains Personal Autonomy

Guardianship can be restrictive, sometimes limiting a person’s ability to make everyday choices about finances, healthcare and their personal life. With a power of attorney, the designated agent can step in only when necessary and act according to the principal’s instructions, preserving as much independence as possible.

Reduces Family Disputes

When someone becomes incapacitated without a power of attorney, family members may disagree about who should manage their affairs. These disputes can lead to legal battles that drain financial resources and cause emotional strain. A power of attorney prevents confusion by providing clear instructions about who has decision-making authority.

Ensures Financial Stability

If an individual suddenly becomes incapacitated without a financial power of attorney, their bills, investments and business matters may be left in limbo. The designated agent can continue managing financial obligations, preventing missed payments, legal complications, or unnecessary financial losses.

Steps to Establish a Power of Attorney

Selecting the right agent is crucial. This person should be trustworthy, responsible and capable of making informed decisions. Many people choose a spouse, adult child, or close friend. However, it’s also possible to appoint a professional fiduciary if needed.

Determine the Scope of Authority

The principal can customize the power of attorney to grant broad or specific authority. For example, they may allow the agent to handle all financial matters or restrict their authority to managing a single bank account. In healthcare decisions, they can outline specific medical preferences.

Create and Sign the Document

A power of attorney must be drafted according to state laws. While templates are available online, working with an attorney ensures that the document is legally sound and aligns with the principal’s needs. The document must be signed, witnessed and, in some states, notarized.

Inform Key Individuals

The agent, family members and relevant financial or healthcare institutions should be aware of the power of attorney’s existence. Keeping copies in accessible locations ensures that the document can be used when needed.

Why Early Planning Matters

A power of attorney can only be created when mentally competent. If someone experiences a cognitive decline before establishing one, their family will likely have to undergo guardianship. Planning prevents legal and financial complications, while providing peace of mind that personal affairs will be handled appropriately.

Key Takeaways

• A power of attorney prevents guardianship: It allows individuals to choose who will manage their affairs if incapacitated, avoiding court intervention.
• It preserves personal autonomy: Unlike guardianship, which can be restrictive, a power of attorney ensures that decision-making remains in trusted hands.
• Family disputes can be avoided: Clear legal instructions reduce the risk of conflicts over who should take control of finances or healthcare decisions.
• Financial stability is maintained: An agent can manage financial obligations, preventing disruptions caused by incapacity.
• Early planning is essential: A power of attorney must be created while the principal is mentally competent, making proactive estate planning crucial.

References: Fox News (Jan. 16, 2025) "Wendy Williams Denies Being Cognitively Impaired, Says Guardianship Feels Like Prison" and American Bar Association "Power of Attorney: What It Is and Why You Need One"