Conflicts of Interest Between FPOA and HCPA

In a previous post, we explained the key differences between a Financial Power of Attorney (FPOA) and a Healthcare Power of Attorney (HCPA). We suggest reading it first, as it provides the essential background for this article, which discusses common conflicts across several key areas.

We hope this article sheds light on how to choose FPOA and HCPA agents who will not conflict, especially when considering family members for these roles.

Decision-Making Conflicts

One of the primary sources of conflict arises from conflicting priorities.

The FPOA is responsible for managing your finances, which includes preserving assets and ensuring long-term financial stability. This can involve making investment decisions, managing expenses, and adhering to budgetary constraints.

On the other hand, the HCPA is tasked with making healthcare decisions that prioritize your immediate well-being, often requiring substantial financial resources for medical treatments, procedures, or therapies.

This difference in priorities can result in disputes over how resources are allocated.

For instance, the HCPA might advocate for expensive medical treatments that the FPOA views as financially imprudent, particularly if those treatments threaten to deplete your assets.

Similarly, disagreements can arise over budgeting, where the FPOA may enforce strict spending limits, while the HCPA demands flexibility to cover unexpected healthcare needs.

Different assessments of risk can further complicate matters, as the FPOA may prioritize financial prudence, whereas the HCPA may opt for riskier healthcare options with potential health benefits.

Coordination and Communication Challenges

Effective communication between the FPOA and HCPA is crucial yet often lacking, leading to coordination challenges.

Misaligned goals can occur when the FPOA and HCPA do not regularly communicate, resulting in decisions made in isolation that impact your overall healthcare and financial situation.

For example, the HCPA might authorize a costly medical procedure without consulting the FPOA, leading to unexpected financial strain and subsequent disagreements.

Furthermore, there can be confusion over decision authority, especially when the roles are not clearly defined or when advance directives are ambiguous. This confusion can lead to disputes over who has the final say in crucial decisions, with each party feeling their responsibilities are being undermined.

Psychological and Personal Conflicts

Psychological and personal conflicts can also play a significant role.

If the FPOA and HCPA are family members, existing dynamics such as sibling rivalries or past grievances can influence decision-making, potentially leading to biased decisions that do not prioritize your best interests.

Additionally, differing personal values and beliefs can result in conflicts over what constitutes appropriate care and financial management. For instance, an FPOA who values financial security might clash with an HCPA who prioritizes the principal’s quality of life, leading to disputes over healthcare expenses and lifestyle choices.

Power of Attorney Conflict Resolution Strategies

If you live in the Henderson or Las Vegas, Nevada area and want to avoid conflicting Power of Attorney (POA) scenarios, please contact a Smith Legal Group estate planning attorney at 702-410-5001 to schedule a free consultation.

Smith Legal Group can help by revising your FPOA and HCPA to ensure clearer communication, better-defined agent roles, and updated directives so that both parties work collaboratively in your best interest. Additionally, we have trained mediators who can help resolve conflicts between an FPOA and an HCPA. If the situation requires legal action through the court system, we can assist with that as well..