Power of Attorney

The single most important document in your Estate Planning arsenal.

Comprehensive and thorough Estate Planning should address not only what will happen after you die, but also during your lifetime. While Wills and Trusts are important, nothing compares with the importance of having a Power of Attorney if you were to become incapacitated.

Most people understand the importance of planning for their eventual passing. Far fewer take the initiative to plan for the illness and incapacity that often precedes death.

A Financial Power of Attorney and Health Care Power of Attorney/Surrogate are the two documents you need to allow your family to help you navigate the elder care continuum.

Financial Power of Attoney

A Financial Power of Attorney is a document where you name another individual to handle your money affairs. It is the single most important document you can have in your Estate Planning arsenal.

While a Will is important, if you pass away without one, your assets will flow down to your next-of-kin. No such bail-out substitute exists for lack of a Financial Power of Attorney.

If you become incapacitated, the financial institutions holding accounts in your name alone simply cannot work with your family members, even your spouse. No one will be able to cash in your assets to pay for care, write checks for you, or pay your bills. The only option at that point will be for your loved one to pursue a guardianship which is an expensive and cumbersome court process – one that will render your health condition and finances as public records.

All Financial Power of Attorney documents are not created equally. Most grant standard authorities such as the power to bank, invest money, and sell or buy real estate. While these powers are extremely important, often they are not sufficient to help a loved one whose health places them on the eldercare continuum. Frequently, enhanced powers need to be articulated in the document, such as the power to gift, change beneficiary forms, and create trusts. However, these robust authorities can be dangerous because an agent with selfish intentions can use those powers for nefarious purposes.

You should not treat a Financial Power of Attorney as a "form." It would be best to meet with an attorney who can draft a Financial Power of Attorney unique to your own specific circumstances and help you choose an agent you can trust.

Health Care Power of Attorney/Surrogate

A Health Care Power of Attorney/Surrogate is a document where you name another person to make health care decisions if you can no longer make them for yourself. Unlike a Financial Power of Attorney, A Health Care Power of Attorney only goes into effect if you have become mentally incapacitated. The document can cover end-of-life issues as well as more routine transactions, such as granting your surrogate permission to release health information to insurance providers.

It is a Health Care Surrogate's job to carry out your wishes regarding your health care. Therefore, it is important that you discuss your preferences with them ahead of time, so they know how to act on your behalf when called into service.

Let's Talk

Do yourself and your family a favor. Meet with a competent elder law attorney and tell that counselor, "I need to set up a new financial power of attorney." It could be the most important step you take to ensure your that loved ones can access and pay for the care you need.

Call us today to learn more about how we can help you create a Power of Attorney that's tailored to your specific needs. We'll make sure you have all the information you need to make the best decision for yourself and your family.

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Frequently Asked Questions

If I'm married, why do I need a Financial Power of Attorney? Can't my spouse access my accounts to pay our bills?

Just being married does not grant your husband or wife access to the financial accounts you own. Your spouse can only access accounts that he or she is named as a joint owner or a signer. That's why a Financial Power of Attorney is so important.

I'm healthy. Do I really want to give a Power of Attorney Agent access to my financial accounts?

Most Financial Power of Attorney documents do take effect when you sign the document. While that thought can give some people pause, you never know when your health can turn, or an accident can leave you incapacitated. Waiting until the crisis hits is often too late. "Springing" Financial Powers of Attorney can be written so the document does not take spring into effect until incapacity sets in. However, these conditional documents can leave your Agent in a frustrating maze of trying to prove your incapacity to financial institutions as they try to get things done for you in a timely manner.

Whom should I choose to be my Financial Power of Attorney Agent?

Someone you trust. Period. It does not matter if the person is not financially savvy. The only thing that matters is that the person can be trusted to carry out your wishes and not take advantage of you.

What is a Living Will?

A Living Will is a document that takes the position that you do not want to be kept alive by artificial means if you are in a terminal or permanently unconscious state.

Is a Living Will the same as a DNR?

A DNR stands for Do Not Resuscitate. Your doctor signs a DNR document after your physician has discussed your wishes with you or your Health Care Agent. If you have a DNR in place, you state that you do not wish to be resuscitated if you go into respiratory or cardiac arrest, no matter your condition beforehand. A Living Will only applies if you are already in a terminal or permanently unconscious state.

What if my Living Will conflicts with my Health Care Surrogate's end-of-life decisions?

Your Living Will should trump the views of your Health Care Surrogate/Agent and carry the day because the Living Will is an expression of your wishes and not the substituted judgment of your Agent.

Let's Talk

Set up a consultation today.

Whether you're planning for your parents, your spouse, or even yourself, The Law Practice of Dennison Keller, LLC will meet you at the crossroads of legal and care advocacy to show you one clear path out of the maze and get you on the road toward your own peace of mind.

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