Medical Power of Attorn♏ey vs. Financial Power of Attorney: An Overview

A medical power of attorney authorizes healthcare decisions to be made on your behalf by a designated individual. It i🌱s one type of power of attorney (POA), which, in general, is a document authorizing someone to make decisions on behalf of another person. A financial power of attorney allows for an authorized individual to manage your finances if 🉐needed.

Whichever type of power of attorney you have, the person who gives the authority is called the principal, and the person who can act for the principal is called the agent, or the attorney-in-fact. You can designate bo🅠th a medical and a financial power of attorney in the evenওt that you're unable to make those choices yourself.

A medical power of attorney and a financial power of attorney are typically created in separate legal documents. Both are known in legal terms as 澳洲幸运5官方开奖结果体彩网:advance directives. Generally, the law addresses each type of advance ☂directive separately, which limits tꦯheir authority.

Choosing people you trust to hold your medical and f💮inancial powers of attorney gives you more control over your interests and ensures your wishes are followed. Knowing the diffꦫerences between these two designations will help you decide whether you should appoint the same person to hold both of these directives for you.

Financial Power of Attorney 

A 澳洲幸运5官方开奖结果体彩网:financial power of attorney permits someone you have designated to oversee your finances. Typically, it is used so the person can step in and pay your bills or handle other financial or re♉al estate matters.

That person can be a financial professional ac🌠ting on your behalf, or you may use it to designate a trusted friend or family member to handle matters if or when you cannot physically or mentally do so yourself. In some cases, it may also be used for isolated, one-off situations where it is not convenient for you to be present, such as a real estate closing in another city.

How a Financial Power of Attorney Works

A 澳洲幸运5官方开奖结果体彩网:power of attorney can take effect as soon as you sign it, or upon the occurrence of a future event. If the power of attorney is effective immediately, it can be used even if you are not incapacitated. If its powers are "springing," they don't go into effect until a 💃future event has occurred. The most common future event is the incapacity of the principal. Incapacity only occurs when the principal is certified by one or more physicians to be either mentally or physically unable to make decisions.

Incapacity can be due to such things as mental illness, Alzheimer’s disease, being in a coma, or being otherwise unable to communicate. If it never becomes necessary, your agent may never use a power of attorney. In many cases, a financial power of attorney may be designated to a professional as part of routꦫine financial management.

Many states have an official financial power of attorney form. Many banks and brokerage firms also have their own power of attorney forms. If your financial concerns include buying or selling real property, or a title insurance company, the lender or closing agent may require the use of their specific form. So, it is possible you may end up with ♔more than one financial power of attorney form.

Generally, a financial power of attorney must be signed before a notary public. Especially if the sale or purchase of real estate is involved, it may also need to be signed before witnesses. Depending on the state you live in, your agent may also be required to sign to accept the position of agen❀t.

Once a power of attorney has been executed, the original document is given 🅠to your agent. The agent can then present it to any third party as evidencღe of their authority to act for you. For example, they could present it at your bank in order to withdraw money from your bank account or use it to sign papers for you at a real estate closing.

You are le♔gally obligated to a third party who reliᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚes on the power of attorney in dealing with your agent.

How to Choose a Financial Power of Attorney

In choosing a financial power of attorney, you will want to weigh whether the person is trustworthy and has enough financial acumen to handle the responsibilities. Thanks to online ba🐓nking and electronic billing, the individual you select doe♔sn’t necessarily need to be nearby to ensure that your bills are paid promptly.

It's important to know that there is no accepted way to amend a power of attorney. If you want to amend a financial POA, the best option is to revoke the existing document and have a new one prepared.

Sღteps for Establishing a Financial Power of Atto🌃rney

Here is a basic outlinℱe for the process of establishi🐭ng a financial power of attorney:

1. Evaluate if one is necessary. In some cases, a financial power of attorney is not necessary. For example, if an individual's income and assets are all in their spouse's name, a financial power of attorney may not be necessary. Likewise, if an individual has a living trust that appoints a person to act as a trustee, then a power of attorney may not be necessary.
2. Identify an agent. One adult will be named the agent in a power of attorney. An attorney, a faith leader, or a family counselor can all help facilitate this decision-making process. A key characteristic of an appropriate person for carrying out the responsibilities of a power of attorney is being willing to consider other people's viewpoints.
3. Take a look at the forms. Certain states have forms that you are required to use, and your financial institution may have a power of attorney form that they prefer you use. Your bank can also serve as a resource for you as you put together a power of attorney. In certain instances, financial institutions may require that their format be used. It’s a good idea to check with any banks or brokers used by your family before crafting the document.
4. Notarize the power of attorney. Once a power of attorney is written, it generally needs to be notarized. A verbal agreement is not recognized as a legal power of attorney, nor is a casually written letter or note. Once a power of attorney is written and notarized, keep a copy safely stored. Make sure the agent has a copy as well.
5. Review the document periodically. Because it may be hard to predict 澳洲幸运5官方开奖结果体🌱彩网:when you will need a power of attorney, the document may be created decades before it will be used. For this reason, it is important to review the document periodically.

Example of a Financial Power of Attorney

Roberta is a college professor who is planning a year-long sabbatical in Spain. Since she will remain in the co𝔉untry for a year, she will not be able to execute her financial dealings in Chicago where she teaches a♎nd lives. She appoints her mother to act as her financial power of attorney for her property and investments. Her mother will write checks and sign important documents related to her investments and property.

Medical Power of Attorney

A medical power of attorney or healthcare proxy designates an individual to make medical decisions for you when you no longer have the capacity to do so. Similar to a financial POA, the ♕person you choose to make healthcare decisions on your behalf when you cannot is referred to as your agent.

Any competent adult can be your agent, but it's important to keep in mind that some states do not allow your agent to be your physician or healthcare provider; an employee of your physician or healthcare provider (unless the employee is your relative); your residential healthcare provider (in a nursing home, for example); or an employee of your residential healthcare provider (unless the employee is your relative).

If an individual has any of the aforementioned designations, they cannot act as your agent for the purposes of a medical power of attorney in some states.

This may be needed temporarily (if, for example, you're under anesthesia and surgery complications arise) or for navigating a longer-term health crisis. The medical power of attorney will only go into effect when you do not have the capacity to make decisions for yourself regarding medical treatment.

How a Medical Power of Attorney Works

A medical power of attorney will focus only on health-related decisions and will be written according to the exact specifications of the individual making the dire༒ctive. As such, a medical power of attorney can include provisions for a wide range of medical actions including personal care management, hiring a personal care assistant, deciding on a medical treatment, and making decisions on medical treatments overall. The forms are available at hospitals and online.

In most states, a medical power of attorney must be signed and notarized by a notary public before it is a binding legal document. You may also be required to have🦩 witnesses present when your medical power of attorney is signed. Neither a healthcare professional nor a lawyer is necessary to create a medical power of attorney.

You can revoke your medical power of attorney at any time. You can also complete a new🦋 med♉ical power of attorney and designate a new agent.

How to Choose a Medical Power of Attorney

Many people have strong feelings about the kind and degree of medical treatment they want. This is why it's important to think carefully about whom to appoint. The person you choose should be someone you can expect to make decisions similar to those you would make for yourself. This person should be over 18 and someone you trust, with whom you can discuss your wishes frankly. You should ask the person you select if they feel able to take on the responsibility.

Keep i🌞n mind: This person may have to make very difficult choices, including ones that may end life by ceasing medical care. Not every person is prepared for this responsibility.

Usually, you appoint only one person as your medical power of attorney, though you can name alternates for situations when that person might not be available. You will also want to consider whether the person is close by and can meet with your doctors should the need arise.

Steps for Establishing a Medical Power o𝓀f Attorney

1. Evaluate if one Is necessary. In general, if you become incapacitated, doctors will do every type of medical intervention to keep you alive. If you want to have more control over the type (and the extent of) the treatment you receive, then you will need to create a medical power of attorney that designates someone with the legal authority to decide the issue for you.
2. Consider whom to choose as an agent. You should choose someone whose judgment you trust, and someone you are confident can capably fill the role. A good agent will, most importantly, be assertive. There may be times when they need to carry out your will against the wishes of other family members. This person needs to be able to communicate effectively even when faced with resistance.
3. Find medical power of attorney forms. There are many medical power of attorney form templates online. Most states have forms that you can use on their Department of Human Services website. The American Bar Association also has links to forms that are accepted in each state.
4. Have the form notarized. A medical power of attorney needs to be notarized, which means that you will need to take the form to a notary and sign it in front of the notary. Notaries can be found in banks and hospitals. Some states may also require you to have witnesses to the signing who attest that you appeared to be in sound mind and signed the document of your own free will.
5. Distribute copies of the form. Many people may need access to your medical power of attorney form. These individuals may include your primary care physician and any specialist who treats you regularly; those designated as your medical power of attorney; close family members or friends; your lawyer; the administrator of your assisted living facility; and any hospital or medical clinic where you receive treatment.

Example of a Medical Power of Attorney

Sharon's mother's kidneys are failing, and Sharon wants to organize her mother's medical and financial documents for her. A medical power of attorney is recommended for everyone, but especially those with a serious, progressive illness. However, it is important that Sharon's mother is well enough to understand what she is doing when she creates these documents.

A medical power of attorney will communicate the treatment wishes of Sharon's mother in the face of a crisis. Sharon lives in Ohio, so she uses the form that is written into Ohio's state statutes. Because Sharon wants to address all the nuances of her mom's health and directives, she gets advice from an attorney after her mother's medical power of attorney is drafted.

Why You Need Both Powers of Attorney

It is possible that the agent for the medical power of attorney and for the financial power of attorney is the same person. Many people choose this route, appointing one person such as a spouse or adult child to both roles. However, medical and financial powers of attorney can be created and designated for a variety of different rea🌌sons. It may sometimes be preferable and more prudent to ask different p🎐eople to take on these roles.

While it is possible to assign medical and financial responsibilities in a single legal document, it's usually not a good idea. A medical power of attorney will have access to sensitive health information that a financial broker does not necessarily need to know. Likewise, a financial power of attorney will include many details about the subject's assets and wealth that would be superfluous to someone making medical decisions.

Selecting a different person for your financial power of attorney and your medical power of attorney may help you choose the best person for each job. If you do select different people for each role, you may want to consider how they might work together. In the event that you become incapacitated, your medical power of attorney will be responsible for making healthcare decisions, while your financial power of attorney will make sure your bills get paid. You will need to pick people who work well together in order to accomplish these tasks.

Power of Attorney vs. Executor of a Will

Both a power of attorney and an executor of a will are persons who are legally appointed to help another person manage their finances and affairs when they are incapacitated. The difference is that a power of attorney manages someone's affairs while they are still alive, whereas an executor of a will manages someone's affairs after they've died.

Power of Attorney vs. Living Will

A medical power of attorney is also called a healthcare power of attorney (HCPA). This document is different than other legal documents related to end-of-life he🌌althcare decisions, such as a living will or a do-not-resuscitate (DNR) order.

A 澳洲幸运5官方开奖结果体彩网:living will is a type of 澳洲幸运5官方开奖结果体彩网:advance directive that docu𓆉ments ༺one’s wishes for end-of-life medical treatment.

A do-not-resuscitate (DNR) order, also known as a do-not-attempt-resuscitation (DNAR) order, is written by a licensed physician in consultation with a patient or surrogate decision-maker. A DNR indicates whether or not the♑ patient will receive cardiopulmonary resuscitation (CPR) in the setting of cardia൩c and/or respiratory arrest.

As part of your 澳洲幸运5官方开奖结果体彩网:estate planning, you may also consider creating a 澳洲幸运5官方开奖结果体彩网:revocable living trust. A revocable living trust is a trust document that can be changed over time. This type of trust appoints a trustee to manage and administer the property of the grantor, and it can minimize 澳洲幸运5官方开奖结果体彩网:estate taxes.

The Bottom Line

A power of attorney allows you to make arrangements for your medical and financial decisions in the event you are incapacitated or otherwise incapable of doing so yourself. Creating a medical power of attorney and financial power of attorney is generally regarded as a 澳洲幸运5官方开奖结果体彩网:smart part of every estate plan.