What is a Durable Power of Attorney for Financial Matters?
A power of attorney gives a person you designate the authority to make financial decisions, such as signing checks to pay bills, handling tax returns, and selling a home. Normally, a durable power of attorney for financial matters is effective immediately upon execution. Sometimes, however, a person is reluctant to delegate broad powers to anyone while he or she is still competent. He or she may want to execute a “springing” power of attorney, which becomes effective only upon the disability of that person and not before. A springing power of attorney can cause problems, however, because of the need to prove the disability of the person before the power of attorney becomes “effective.” Typically, the agent listed in a power of attorney is a spouse, child or trusted friend who does not want to be the “bad guy” in taking away a person’s dignity by obtaining the necessary documentation that the principal is now incapacitated.
What is a Healthcare Power of Attorney and Living Will?
A healthcare power of attorney authorizes a trusted person (or persons) to make health care decisions in the event you are unable to make them. Typically, you empower your family to help you and to be in charge of medical decisions when you are unable to represent yourself. A healthcare power of attorney works hand in hand with a Living Will which allows you to clearly express to the doctors and health care providers your wishes regarding the use of life-sustaining medical procedures when death is imminent.
HIPAA - Medical Privacy
Medical privacy regulations under HIPAA may prevent hospitals, nurses, doctors, insurance companies, etc. from disclosing medical information to relatives and friends. Your healthcare power of attorney should waive this privacy restriction for those you want told about your medical situation.
Power of attorney documents are not “just forms.” They are powerful documents which we customize to meet each person’s estate planning goals and family situation. Want to speak with a knowledgeable Elder Law attorney about a Power of Attorney? Contact us now.