Health Care Powers of Attorney, Financial Powers of Attorney and Living Wills.
When is the best time to plan for incapacity? The answer is simple: before you need it. When you are in good health, you are in the best position to make well-informed decisions about your future. Waiting until an emergency arises can lead to hurried decisions and added stress for you and your loved ones.
The best way to maintain some control over our lives when we are faced with mental incapacity is to decide now, while we are still competent, who we want to handle our financial affairs and who will make medical decisions for us when we are no longer able to do so. The most common tools used for these purposes are called Powers of Attorney.
For many people, Powers of Attorney for Financial Affairs, and Powers of Attorney for Healthcare (frequently called Advance Directives) are the most important estate planning tools they will prepare. A Power of Attorney grants power to a person, the Agent, to make or carry out instructions of the signer of the power, the Principal. Agents under a Financial Power of Attorney frequently have broad powers to deal with the Principal’s property and property interests. Common powers granted include: check-writing, investing assets, paying taxes and dealing with governmental entities, gifting, and defending or prosecuting lawsuits.
Powers of Attorney for Healthcare grant the Agent general authority to make healthcare decisions for the Principal and give specific direction with respect to continuing or ending life support and withdrawing medically administered nutrition and/or hydration when the Principal is no longer able to give informed consent to his care.
Many people believe that in the event of their incapacity, their spouse will have the legal right to make medical decisions for them and to handle their financial affairs. People also often think that they may act on behalf of their children for as long as their children are dependent on them. Neither assumption is correct. In each case, Powers of Attorney are required. Courts report a growing number of guardianships because of the failure to sign Health Care and Financial Powers of Attorney in advance of incapacity.
Feeling overwhelmed? You don’t have to navigate this journey alone. At Caldwell Law, we offer expert guidance tailored to your needs, helping you take the right steps to plan for incapacity effectively. If you found this article helpful and want to be better prepared for your future, please contact us.