There are two legal tools available that allow someone to manage your financial, medical and personal needs. The two tools are power of attorney documents and guardianship. While they both achieve the same purpose, they have very important differences.
A power of attorney document is a proactive measure. You create this when still of sound mind and you choose the agent(s), successors and terms. Guardianship is a reactive measure. Once you become disabled or mentally incapacitated, your loved ones establish the guardianship.
Being proactive keeps the power in your hands. With power of attorney documents, there are two main types included in most estate plans – a general power of attorney establishing who will manage your financial and legal affairs and a healthcare power of attorney establishing who will make medical decisions on your behalf. Keep in mind that with a power of attorney document, you execute the documents with your choices reflected, but they do not go into effect until such point that you cannot manage your own affairs (unless you indicate otherwise in the document).
Most power of attorney documents are written so that they become effective when a doctor confirms that the person is not capable of making decisions on his or her own. This allows the agent named under the power of attorney document to begin making these decisions and handling all the matters allowed under the terms of the power of attorney documents.
What powers can be conveyed in a durable power of attorney that manages someone’s legal and financial affairs?
You may authorize an agent to:
· buy or sell things for you;
· apply for public benefits (such as Medicaid, Medicare, or Social Security) on your behalf;
· manage your business;
· collect your debts;
· invest your money;
· cash your checks;
· manage your financial matters generally; or
· sue on your behalf.
Some powers are given only if they are specifically mentioned. Those requiring specific mention include:
· the power to make gifts of your money or other property;
· the power to change your community property agreement; and
· the power to designate beneficiaries of your insurance policies.
Some powers cannot be given to an agent. Those include:
· the power to vote in public elections; and
· the power to make or alter a Will.
What powers can by conveyed by a healthcare power of attorney?
A healthcare power of attorney names an agent that can make medical decisions on your behalf as they arise when you are not capable of making them for yourself. Common powers granted to healthcare agents include the following:
An advance directive or “living will” is a written document that gives instructions to your physician as to whether you want life-sustaining treatment to be provided, withheld, or withdrawn. A healthcare power of attorney can include this information, but often a separate document is created. If there are inconsistencies between your power of attorney for healthcare and your advance directive, the most recently executed document controls.
Keep the power in your hands. Be proactive about creating power of attorney documents with experienced estate planning attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
https://attendee.gotowebinar.com/register/3934427956163075852
11/7 (Sun) https://attendee.gotowebinar.com/register/3571666084810971404
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