The primary alternative to a power of attorney is a conservatorship, which the court establishes when an individual lacks the capacity to manage their own affairs. Conservatorships are more restrictive than POAs and remain closely monitored by the court.
A trust can also serve as an alternative to a financial POA, particularly if most of the principal’s assets are held in trust. In this case, a trustee, rather than an agent, can manage trust assets if the trust creator becomes incapacitated or passes away.
A POA is generally preferred when the principal still has capacity, as it is less restrictive, quicker to implement and allows the principal to appoint a trusted agent of their choosing.
