What is a Durable
Power of Attorney?
Who can create a Power of Attorney?
Who may act as an agent under a Power of
Attorney?
How does an agent use a Power of Attorney?
What is a Durable Power of Attorney for Health
Care?
What is a Living Will?
What is a HIPPA Authorization?
Q: What is a Durable Power of Attorney?
A
durable power of attorney allows you to carry
on your financial affairs in the event that you become disabled.
Unless you have a properly drafted power of attorney, it may be
necessary to apply to a court to have a guardian or conservator
appointed to make decisions for you when you are disabled. This
guardianship process is time-consuming, expensive, often costing
thousands of dollars and emotionally draining.
There are generally two types of durable powers of attorney: a
"present" durable power of attorney in which the power is
immediately transferred to your attorney in fact; and a
"springing" or future durable power of attorney that only comes
into effect upon your subsequent disability as determined by
your doctor. When you appoint another individual to make
financial decisions on your behalf, that individual is called an
"attorney in fact". Anyone can be designated, most commonly your
spouse or domestic partner, a trusted family member, or friend.
Appointing a power of attorney assures that your wishes are
carried out exactly as you want them, allows you to decide who
will make decisions for you, and is effective immediately upon
subsequent disability.
Back to the top.
Q: Who can create a Power of Attorney?
Generally, any individual over 18 years of age
who
a resident of the state in which it is created
and who is
legally competent
can create a power of attorney
Back to the top.
Q: Who may act as an agent under a Power of Attorney?
In
general, an agent may be anyone who is legally competent and
over the age of 18. Often, it is a family member such as a
spouse, sibling or a child. While more than one person can be
named as an agent, naming two or more individuals to act
together can prove inconvenient, especially if a power of
attorney must be exercised promptly. It is usually more prudent
to name one individual as agent and then another as an
alternate.
Back to the top.
Q: How does an agent use a Power of Attorney?
Your agent presents the original power of attorney document to
the other party involved in the transaction and signs documents
on your behalf. Your agent signs his or her own name, followed
by the words "Attorney in Fact for Bob Jones.
Back to the top.
Q: What is a Durable Power of Attorney for Health Care?
The
law allows you to appoint someone you trust - for example, a
family member or close friend to decide about medical treatment
options if you lose the ability to decide for yourself. You can
do this by using a "Durable Power of Attorney for Health Care"
or Health Care Proxy where you designate the person or persons
to make such decisions on your behalf. You can allow your health
care agent to decide about all health care or only about certain
treatments. You may also give your agent instructions that he or
she has to follow. Your agent can then make sure that health
care professionals follow your wishes and can decide how your
wishes apply as your medical condition changes. Hospitals,
doctors and other health care providers must follow your agent's
decisions as if they were your own.
Back to the top.
Q: What is a Living Will?
A
Living Will informs others of your preferred medical treatment
should you become permanently unconscious, terminally ill, or
otherwise unable to make or communicate decisions regarding
treatment. Almost all states have instituted living will laws to
protect a patient's right to refuse medical treatment. Even if
you receive medical care in a state without living will laws
this document is useful to a court trying to decide what an
unconscious patient would want. In conjunction with other estate
planning tools, it can bring peace of mind and security while
avoiding unnecessary expense and delay in the event of future
incapacity.
Back to the top.
Q: What is a HIPPA Authorization?
Some medical providers have refused to release information, even
to spouses and adult children authorized by durable medical
powers of attorney, on the grounds that the 1996 Health
Insurance Portability and Accountability Act, or HIPAA,
prohibits such releases. In addition to the above documents,
you should also sign a HIPAA Authorization Form that
allows the release of medical information to your Agents, your
Successor Trustees, your family and other people whom you
designate.
Back to the top.