What Do I Need to Know about a Power of Attorney in WA State?

What Do I Need to Know about a Power of Attorney in WA State?

A power of attorney gives a loved one the legal authority to handle your healthcare, financial, or other important decisions for you if you’re unable to. This can help you both during major life events when you need extra help or if you’re physically or mentally unable to make decisions on your own.

What Exactly is a Power of Attorney?

A power of attorney is a legal document that grants the named person the power to take the actions you list in the document. Doctors, financial institutions, schools, and others honor instructions from the power of attorney as if they were coming from you. Without this document, they would usually be legally bound to ignore the power of attorney’s instructions even if they believe that’s what you would want.

A power of attorney is not actually an attorney and doesn’t have to be a lawyer. It can be anyone you trust. The name just means they have similar powers to what you might grant to an attorney.

What Does a Power of Attorney Cover?

A power of attorney can cover virtually all decisions, or it can cover one specific action. What you include is up to you. Power of attorney powers might include the following.

  • Healthcare decisions
  • Care of your children
  • Paying your bills
  • Managing your finances, including selling assets or investments to cover expenses
  • Operating your business
  • Making decisions in litigation on your behalf (similar to how you would instruct an attorney rather than the actual legal work)

What Form Does a Power of Attorney Need?

You can find many templates and examples, but there is no specific form to use. The power of attorney just needs to be clear that it’s a power of attorney, name who you’re choosing as your agent, and list the powers you’re granting that person. It’s preferable to have it notarized so that there’s no question about its validity. You can sign in front of two witnesses rather than a notary if you need to.

What is a Durable Power of Attorney?

A durable power of attorney is a power of attorney that lasts even if you’re incapacitated due to illness or accident. Not all powers of attorney are durable. For example, someone working abroad may designate someone to manage their affairs back home without making the power of attorney durable.

A power of attorney that isn’t durable terminates on your incapacitation. To be durable, the form must include your intent that it be durable.

What Do You Do With a Power of Attorney?

Your agent will need to present the power of attorney form to prove that they’re authorized to act on your behalf. You should keep at least one copy for yourself with additional copies located wherever you have copies of your other important documents. This allows your family to be aware of the power of attorney if something happens to you.

Can You Cancel a Power of Attorney?

You can cancel a power of attorney at any time for any reason. You just need to notify your agent. You may also wish to notify anyone that your agent was working with if you wish to make sure they no longer honor your agent’s instructions.

How Long Does a Power of Attorney Last?

A power of attorney might be indefinite, last for a specific amount of time, last until something happens, or only cover a specific action or event. You decide this when you create your power of attorney. No matter which option you choose, you still retain the right to cancel it early.

In the case of a durable power of attorney, it will be in effect from the time a physician or court declares you are incapacitated and last until death. You can cancel it if you recover and are competent to do so.

What Happens to a Power of Attorney When the Principal Dies?

If you die, your agent’s powers cease when they learn of your death. A power of attorney cannot be used to handle your estate even if you try to include that in your power of attorney. You would need to rely on a will or other planning documents.

What Must a Power of Attorney Do?

A power of attorney must act in your best interests. They cannot use your funds for their own benefit. When authorized to make medical decisions, they must follow your wishes as they understand them even if they would choose a different course of action.

What Can’t a Power of Attorney Do?

There are several things that you can’t include in a power of attorney under Washington law. These include several very important medical and legal decisions.

  • Medical: Amputation, shock therapy, life support decisions, or institutionalization. You’d need an advanced healthcare directive instead.
  • Financial: Changing life insurance beneficiaries, modifying a community property agreement, or making monetary gifts unless these actions are specifically included in the power of attorney. Modifying a will or voting in elections can never be included.

What if there is a Disagreement Over a Power of Attorney?

Your agent must follow your instructions, and you can remove your agent at any time. In case of a durable power of attorney where you’re incapacitated, your family can petition a court to invalidate the power of attorney or to force the agent to act in accordance with the instructions in the document.

Is an Out-of-State Power of Attorney Valid?

Most states will honor a power of attorney from another state at least on a temporary basis. If you become a resident of a new state, you should make sure your power of attorney meets the requirements for that state.

What if a Power of Attorney Names Two Agents?

A power of attorney may name one or more agents. If you name multiple agents, they must act jointly and agree on all decisions. You can also allow them to act independently, meaning each can act without input by the other(s), if you specifically state this in your power of attorney.

What is the Difference Between a Power of Attorney and a Living Will?

A living will or advanced healthcare directive spells out what major medical decisions you’d want made on your behalf. These documents are used by your doctors and others to understand your wishes.

A power of attorney’s main job is to designate a specific person you want making decisions for you rather than the specific decisions to be made. While you can limit those decisions in the power of attorney, keep in mind the medical decisions that a power of attorney can never make by law.

What is the Difference Between a Power of Attorney and a Guardianship?

A guardianship has a higher level of responsibility and decision-making than a power of attorney. A guardianship must be approved by a judge, and the guardian must provide periodic updates to the court. A power of attorney only needs the proper forms.

What is the Washington Uniform Power of Attorney Act?

The Washington Uniform Power of Attorney Act was a 2017 law that added safeguards to prevent abuses of powers of attorney. Many of the restrictions and requirements described above were added as part of this act. While you may see references to the Washington Uniform Power of Attorney Act, this is just a formal way of describing the laws that routinely govern powers of attorney.

When Should You Update Your Power of Attorney?

There are several situations where you may need to update your power of attorney.

  • You or your agent have moved, and the distance makes the arrangement impracticable.
  • The agent is no longer willing or able to assume the duties, or you no longer want them to.
  • Your life circumstances have changed and you need to agent to assume different responsibilities.

Do You Need an Attorney to Draft a Power of Attorney?

There is no legal requirement to have an attorney draft your power of attorney. However, a power of attorney confers important legal responsibilities, and you may want to have an attorney confirm that your power of attorney will do everything you want it to with no unintended consequences. Your attorney can also help you avoid technical mistakes that might result in a challenge to your power of attorney. To get help, talk to Lilac City Law today.

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The Importance of Power of Attorney During Estate Planning

The Importance of Power of Attorney During Estate Planning

Your estate planning has many different parts that all need to move in the same direction in order to be successful. A vital part of this process is how to disseminate the various powers of attorney (POA). The POA will be one of the most important estate documents that you create, so you owe it to yourself to know as much as you can about it. Let’s take a look at just how important the POA is and how it will be used during the estate planning process.

What Is the Power of Attorney?

The power of attorney is the power to organize affairs on your behalf. There are different powers of attorney for different aspects of your life. For the purposes of this text, we will focus most on the financial POA, but there are also medical POAs and others that may apply during the estate process depending on circumstances.

In most cases, a power of attorney becomes effective immediately upon document execution. Contrary to popular belief, powers of attorney are not only for when a person becomes mentally incapable. In many cases, the POA document does not completely remove the power of the principal to manage their or her own affairs. The document simply grants the agent the power to act in place of the principal if needed. If the principal remains mentally competent, he can change the POA by replacing the agent or revoking the power totally.

However, the POA document truly becomes the most important document in the estate planning portfolio if a principal becomes somehow incapacitated or otherwise unable to handle their own affairs.

What Happens Without a Power of Attorney in Place

If a principal becomes incapable of handling their own affairs and has no power of attorney document in place, the family of the principal faces a potentially contentious situation. The POA document is the document on record of the wishes of the principal. Without it, there is no direct claim to the finances that the principal was in control of. Family members may begin to fight over the right to control things, especially if the estate is especially large or there are many valuable assets to consider.

In place of a designated person with the powers of attorney, the affected parties may agree to file for guardianship of the assets and property of the principal that has been disabled. Instead of simply following the wishes of the principal as mapped out in the POA, the family must now go through an often long and drawn-out court procedure.

The Process of Guardianship

During the court process of selecting a guardian, there will usually be a lawyer who is representing the Petitioner. The Petitioner is the individual who is looking to be named as the guardian. The Petitioner and their attorney will need to face, at the very least, an attorney who is in court to represent the rights of the person who has been disabled. No matter how close the family is, this process will likely generate thousands of dollars in legal fees in order to legally appoint the guardian.

Keep in mind also that a power of attorney document that is not clear may trigger this contentious process as well. You need to have the right attorney with the right experience in order to avoid these problems — just having a POA document that is not appropriate for your situation is not enough. A properly drafted power of attorney directly from the principal, while he is competent, is always preferable to a guardianship court proceeding.

Even when a legal guardianship is in place, the court maintains a Big Brother stance over the guardian to supervise the administration of the estate. Guardians are much less free to manage an estate than someone who is appointed through a power of attorney document. Guardians must always get the permission of the court to legally undertake many important assets that involve the estate, including paying the attorney’s fees for the procedure itself.

The court will also require that a guardian file an accounting of the estate on an annual basis. On top of this, a guardian must also file an inventory of the estate so that the court knows every activity that is taking place within the family estate. Having to report everything to the court undermines the very nature of a private estate, and it is much more expensive than a power of attorney transfer of responsibility. In most cases, the oversight of the court means that a family must employ more legal services in order to stay in compliance with regulations.

If you are in this sensitive situation, we can help you through it no matter who you may be up against. Do not hesitate to call us if you believe you have a legal claim to the estate of a family member who has been recently incapacitated.

Having an Effective POA

As mentioned before, the power of attorney that is set up by the principal must be well-drafted and relevant to the current situation. Otherwise, the court may trigger the guardianship process and all of the expenses and legal hassle that comes with it.

What makes a POA document effective during estate planning? Let’s take a look at the characteristics of an effective power of attorney.

  • Listing specific powers and limitations. A good power of attorney will list out the specific actions that an agent can take on behalf of a principal. Among these actions may be paying bills from the principal’s assets; managing those assets; selling all or part of the estate; and setting up various structures to avoid estate taxes. A principal may wish their estate to be used in a very specific way, and this is what the power of attorney should spell out in clear terms.
  • Language in the POA to persuade financial institutions to accept an agent. The financial institutions that did business with a principal are under no requirement to accept an agent, even from a properly worded POA. Many of these institutions now require language that is very specific in the POA to reaffirm that there is no funny business going on. Agents should also be prepared to reaffirm their responsibility, possibly on the financial institution’s proprietary forms.
  • Listing consolidated accounts. As a principal, if all of your accounts are kept spread out, your agent will have a tough time jumping through all of the hoops of the financial institutions want. Every bank is different. Consolidating accounts as you age not only helps to organize your family finances in the estate, but it also makes it easier to manage while you maintain control over them. You may want to list all of these accounts by name in the POA so that each financial institution can be more assured of your agent’s viability.
  • Decide on the type of POA. There are two major types of POAs that you can consider: the springing POA or the durable POA. The durable POA gives the power of attorney as soon as the principal signs it. The springing POA only takes effect in the event of a certain condition, such as the death, disability or incapacity of the principal. The timing of agent powers is a vital part of a POA. Without it, an agent may try to take over a principal’s estate too early and cause contention. Keep in mind that not all states allow springing POAs.
  • Define the conditions of incapacity. The last thing that you want is for someone else to determine when you are incapable of managing your own affairs. In your POA, you can name a medical professional to certify that you are incapacitated before your agent can take any action on your estate. This puts an added layer of protection in your POA, and it also gives your agent a good check against absolute power while you are still capable.
  • Establish oversight. Although your agent may have power of attorney, you can limit this right with certain oversights. The key is to make sure these oversights are written down specifically and fully clear to your attorney, to your agent, to the overseer and to anyone else who is involved in your estate.

Get Help with Powers of Attorney Today

The points above are just a few of the important aspects of the power of attorney document during estate planning. Every plan is different based on the individual needs of the estate. Make sure that you have the right attorney by your side when it is time to draft this essential document. Give us a call or an email with any questions that you may have about the process, or to get things started with your own POA. Time is of the essence, and there is no better time than now to get your affairs in order.

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A Young Family’s Guide to a Rock Solid Estate Plan

A Young Family's Guide to a Rock Solid Estate Plan

If you are under 40 years old, the chances of you have thought about, or even pursuing estate planning is pretty small. However, something brought you here, and that means you are on your way to changing the way you look at planning your future!

The exploration of life planning that brought you here is the reason we started doing estate planning for families here at Lilac City Law in the first place. We believe that the best time for you to set up an incredible estate plan is when you are young; maybe even before you have children! So, where we begin this exploration in estate and life planning?

What step do you take first to get you from realizing an estate plan makes sense, protects you and your family, and is something you can do regardless of your asset profile?

Let’s look at the path to estate planning, step-by-step, and help you get prepared to engage with an estate planning attorney who has already established some basic fluency in this topic.

The Most Important Part of Your Estate Plan is Getting Started

Probably the best thing to know about starting an estate plan is the first step can be free. Set up your Protection Plan. This action alone knocks off several of the items we are going to be discussing later in this article. You can do set up your free protection plan here. Moreover, if something happens to you or your family while you are working on the rest of your plan, you will be set up with at least some security.

Get Started Here – Set Up Your Protection Plan

Read Wear Clean Underwear, It’sAn Excellent Discussion on Estate Planning

We cannot recommend enough grabbing a copy of Wear Clean Underwear. This book breaks down the reasons why you should be considering an estate plan in incredible detail. From the very beginning, you get to choose your adventure and see how common life scenarios play out depending on what estate planning decisions you make. If there is a list of books you should be giving new families, this book should be high on that list.

Estate Plan: The Third Step, Get Familiar with Estate Planning Items

If you completed step 1 above, awesome! Hopefully, you have step 2 bookmarked, now. And now for the third step, review the following fundamental elements of a comprehensive estate plan.

Establish Your Last Will & Testament

When most people think about life planning, and how to set up their family after their passing, they think about establishing a will. A will is often more formally titled, a Last Will and Testament. But what is it? And, why do you want one, or need one?

A Last Will and Testament helps you to direct the transition of your assets to family members, friends, or whomever else after you pass away. It is almost always a formal legal document; however, there are cases where a court has upheld a will etched on to the paint of a tractor, and there are indeed other extreme examples of last-minute wills. For the sake of estate planning, we are sticking to a document you draft with your family and your estate planning attorney though! 🙂

The benefits of a Last Will and Testament are that they can cover items that a living trust may not cover. With a Trust, you are trying to transfer assets without having to go through the process of probate. Probate is costly and can be bypassed to a great extent with estate planning. However, you will not be able to continuously transfer all your assets to a Trust, no matter how diligent you are. A Last Will and Testament will help you here by covering things you have left out of your trust either by accident or on purpose.

In addition to unaddressed assets, a Trust cannot declare who will be the final guardian of your children in the event of an untimely passing. This contingency, in particular, is something your Last Will and Testament will spell out explicitly. Moreover, this scenario is also why you would benefit from working with an excellent estate planning attorney to set it up. Read the book we talked about in step two to see why, for your kids’ sake, this is something you want to work through in extensive detail.

What You Need to Know about Advanced Health Care Directives

An advanced health care directive is a document in which you can set down your end-of-life preferences. You can also appoint someone in your directive to act on your behalf in making health care decisions for you, assuming you cannot make them for yourself.

Without a health care directive, your end of life care may be decided by doctors who do not know you and are unable to get your direct consent to treat (or not to treat).

An advanced directive is also often called a living will.

Establish Your Health & Financial Powers of Attorney

If it comes to pass that you are unable to manage your finances, or direct your self-care, who will take care of those things? If your spouse or partner is your #1 choice, that is a great plan. But, what if they are not able to help you out? Maybe they passed away, you split up, or they are simply out of town when something happens?

Health & Financial Powers of Attorney enable someone you trust to both acts on your behalf financially and in health care decisions for you. These Powers of Attorney (POA) also allow your designee to obtain information on your behalf. We wrote a great article on how this can work well, and how things can go sideways without these documents. It is worth a read, here.

You Need A Kids Protection Plan

A Kids’ Protection Plan is not necessarily one static document. Instead, it is probably best looked at as the state of your estate and family planning. Are your kids set up to be taken care of if you pass before they are grown?

While you are exploring estate planning, this is something you want to get set up as soon as reasonably possible. Meaning, to start, we should not make the perfect the enemy of the good. Get a basic kids protection plan set up, here. The basic plan will give you and your family some level of protection as you work through the more granular aspects of estate planning.

Eventually, you will want to establish custody rights in your Last Will & Testament. Likewise, you will want to set up how your assets will transfer to your children if that is your desire. Also, you will want to set up many other things with other steps we talk about in this article.

So, step one for kids’ protection, keep them out of the custody of the state, get a guardianship set up here.  Step 2 ~ 100, talk to an estate planning attorney.

Don’t Forget Your Final Arrangements Plan

The particulars of your final arrangments are likely to be as unique as you are! However, the broad strokes things you might want to cover and leave in a place where your family can find them, include:

Your desire for what will happen to your body. Do you want your remains to be buried or cremated? Are you ok with embalming?

Do you have a preference on who will be handling your remains for burial or cremation? Have you worked with a specific mortuary in the past? Do you already have arrangments with them to take care of you?

Where will you be buried, interred, or placed? Is there a particular cemetery or location you have in mind? Are there actions you wish to be taken at that event?

If you are a Veteran and want to be interred at a National Cemetery, do you have a copy of your DD214 available and the number for the National Cemetery Administration ready for your family or caretakers to quickly make arrangments?

Have you already made provisions for a casket? Do you wish a certain type of casket or container be used? How do you want this to be paid, if you have not already paid for it? Do you want an open or closed casket funeral, if the choice is available?

Who will be your pallbearers? How do you want to be transported to your final resting place? Who will scatter your ashes, and in what way? Do you have funeral preferences?

Is there a marker you wish placed on your final resting place; a gravestone? Alternatively, a particular engraving to go on whatever marker you have set up?

Your Business Should be Part of Your Estate Plan

If you are a business owner, you might have given some thought to what you want to happen to your business if you are not around to operate it anymore. Even if you have not, it is probably a good idea to establish some contingencies. Exactly how the contingencies are set up will be predicated on many factors, including business structure, partners, debt, industry, products, and a million other things.

The best bet here is to talk to an estate-planning attorney and work through a planning process. What do you want to happen; a transfer of ownership? A sale of the business (who will the proceeds go to)? We are scratching the surface on this issue, but the important thing to remember is that all your plans for your business can be worked out in advance; you just need to start the process today.

Don’t Forget About Your Insurance Policies

Do you have a life insurance setup? We are not writing this article to tell you whether to do so or not; we only want you to be able to help you transfer all your assets and investments where they are supposed to go. To do that, you will need to have a list of your insurance policies ready and the individual procedures and points of contact setup at those policies.

Don’t forget that credit cards and other items that might involve debt often have the option to provide life insurance too! You may have a policy set up that you did not even realize you had!

Regardless, get your plans laid out for your family to work through, get your beneficiaries lined up, and establish a plan for transferring the payout to whomever you wish to designate.

Tax Materials – Uncle Sam Wants to Know

Owing taxes after your passing is maybe the ultimate injury to insult! However, if you own property your property will remain after your passing, and the taxes will too, sadly. Your beneficiaries will need to be instructed on how, when, and whom to pay taxes. They may also need a historical account of your taxes, for any number of reasons.

Itemize Your Investments & Accounts in Your Estate Plan

While you are getting your insurance and tax documents in order, you should be laying out any investments and bank accounts you might have as well. This list will be very helpful for your financial power of attorney, and/or your family when you pass.

It is important to think about this as more than your bank accounts too. Don’t forget 401k, stocks, bonds, bitcoins, IRA’s and other forms of investment.

Trusts are Also Excellent Estate Planning Instruments

We covered Trusts, as they relate to Wills, earlier in this article. In many ways, Trusts and wills seek to fulfill the same ends but by very different means. Whereas a Will grants property and assets to a designee, it is often more open-ended. It is also far more restrictive in updating.  Here’s another article that compares the two as well.

If you need to amend a Will, you either have to go through a public court proceeding, or you have to scrap it all and start over. The thing is if you create a Will years or even decades before your passing and you intend it to speak to every aspect of your estate, it will be very open to interpretation. This point is where a probate court will come in, and on top of taking a hefty portion of your estate value in fees, the court will seek to interpret your will. Do you want someone who does not know you to understand the intentions that you put on paper 20 years ago? < This is where a Trust can help and work in tandem with your will.

You can use a trust to pass specific assets on to a beneficiary, bypassing probate entirely. Moreover, if you avoid probate through establishing a trust, you keep the details of your asset profile out of public records. This benefit in itself is self-evident. If you value the potential information on your children’s assets to be kept private from unscrupulous “advisors,” transferring those assets in a trust is one way to go. Can you tell we value privacy?

Lastly, a trust is easy to update, especially in comparison to a Last Will and Testament. A phone call to your estate attorney once a quarter and you will have a trust that is ready to be executed once the parameters you have decreed have been established. You can read more about how a trust is implemented in this article from our blog.

Estate Plan: Contact Sheets

Does your sister in law have your babysitter’s contact information? How about your parents, do they know how to get ahold of your spouse’s cousin who lives next door? It is imperative that you have contact sheets created for key points of contact, and that those contact sheets are readily available.

More to this point, you will want to have a procedure set up for what happens if the way someone learns something has happened to you is that you haven’t come home. Do they call the police first? Do they call your neighbor who knows your children’s guardianship plan and has access to it?

Again, read this book – free with this offer, to see why this is so very important. Then contact an estate planning attorney to get the ball rolling on this.

Passwords & Account Information

How secure is your Facebook account? Does anyone else have your password? Your spouse, your kids? You would probably know because if they did, they would no-doubt be posting practical jokes all the time from your account, right?

Kidding aside, it makes a lot of sense why you wouldn’t share your social media, email, or other account passwords with someone else. Why would you even have a password if you started sharing it? Plus, passwords now have to change often anyway, so keeping a physical and updated copy can be a challenge.

The solution here might depend on your preferences. Whether it is a physical sheet of paper you keep in a safe place, or an Application you install on your smartphone, it is a good idea to have some way for those you care about to be able to access your important accounts in an emergency, or after you pass.

Emergency Cash

Have you ever thought of storing some cash in your mattress? Ok, well maybe somewhere a bit more secure… The point being, you do not know what will be the emergency that makes your estate plan necessary. In actuality, there may be several emergencies throughout your life that part of your estate plan becomes necessary to address.

Part of what makes a rock solid estate plan so comprehensive is that it addresses as best as possible all those nebulous potentialities. The estate plan is specific where it needs to be, but flexible enough to handle the unknowable unknowns. In regards to flexibility, cash is king.

Cash is immeasurably useful; it is easy to transfer (hand it over). It is accepted universally. It can be easily secured. Also, you do not need anyone’s help to build a small but capable emergency stash, just in case you need it someday. Make sure cash is part of your emergency estate planning, and make sure it is readily available.

A Photographic Itemizations of Assets

This idea crosses over into good insurance practice too. You can describe your assets in great detail, but as it has been said, “a picture is worth a thousand words.”

Keep a photo diary or photo catalog of your assets. It may come to pass that your desire to transfer certain assets might not be as descriptive as necessary if there is some contention. If however, you include a picture of that property, as well as a description of it, you leave a whole lot less up for doubt.

Plus, as we said a second ago, keeping photos of your assets is helpful for insurance purposes too. So, it just is a good, and cheap, safety measure to incorporate into your regular estate planning.

Photos & Recording of Yourself!

While you are thinking about pictures, you may want to put some physical pictures away in a safe too. Or at the least, start uploading them to the cloud via Dropbox. Another option is using several USB sticks.

Why would you want to do this? For your family, your kids in particular. This idea depends on how much you wish to leave behind for your family to know you by. Many families create these digital memories and never need them. They send them with their kids when they leave home or watch them with them at their milestone birthdays; which is also pretty awesome! However, some families will have these become part of their record to their children of who they were when they were alive.

In the end, photos and recordings of yourself are not necessary for your estate plan. But, they are a touching gesture for your family, should you pass.

Store Your Estate Plan in Different Places

Lastly, in our rundown of estate plan musts, store your plan in several places. Or at the very least, store it in one very secure place. This plan is going to be important to your family at some point. If it is when you have passed, you will not be able to tell them where or how to access it, if you moved it.

In fact, you might have lost a physical copy of your plan due to an accident, a fire, moving, or something else. It happens! Keep the details of your plan safe.

The Most Important… Last Piece

One option for this is to work with an estate planning attorney. Once they find out that your plan is necessary, they will immediately become part of the team to triage your needs and the needs of your family. Do you have a guardianship plan, so your kids do not end up as wards of the state? If so, your estate planning attorney will know where it is, how it works, the limits and rights it grants, and how to execute it immediately.

On top of everything else we discussed in this article, having a trusted advisor in the form of an estate planning attorney is the most important “must-have” in this entire article.

You can contact Lilac City Law, here.  Or fill out the form below.   Find out why we are rated 5/5 stars on Google!

What You Need to Know About a Healthcare Power of Attorney (HPOA)

What You Need to Know about a Healthcare Power of Attorney

One of the things that often confuse people setting up estate plans is the difference between the various powers of attorney.  Often, people looking into estate planning ask questions like


Can we just wrap this all up into one? 
Why do I need all these when all I want to do is make sure my family can take care of my estate when I’m gone?

As simple as it would be to have one document that rules them all, it’s sadly not the case in today’s world.  We’ve covered a basic Durable Power of Attorney (DPOA) in another article.  So, we’re going to use this article to cover a Healthcare Power of Attorney.  Describing what it is, how it compares to other powers of attorney, and why you really do need an HPOA in the first place.  

 

 

What is a Healthcare Power of Attorney, and What Does it Do?

A Healthcare Power of Attorney (HPOA) designates someone you select for making healthcare decisions on yours and/or your families behalf, should you become unable to do so.

You might imagine from this description that this is a potentially huge responsibility.  The person designated to act on your behalf in healthcare matters could be tasked with anything from carrying out discussions with your family doctor and other healthcare providers, to making life-altering healthcare decisions for you or your family, should they be necessary.  Needless to say, you should draft your HPOA wisely and designate someone you trust implicitly a to potentially make wise and informed decisions if they ever need to be made for you and in your best benefit.

 

What is the Difference Between a Healthcare Power of Attorney and a Healthcare Surrogate?

You may ask yourself at this point,

“Wouldn’t any healthcare provider would make the best decision that is most suited for you so why go through the process of having to assign a durable healthcare power of attorney in the first place?”

They’d probably be an adequate surrogate on my behalf, right?  Well, possibly.  But you’re taking risks at that point that need not be taken.  For starters, a healthcare surrogate is someone who you do not appoint for yourself. He or she is someone who the doctors or other healthcare providers appoint for you when you become incapacitated or otherwise unable to make medical decisions on your own behalf.

The healthcare surrogate could be family, spouse, children, etc.  But there is no way for you to determine that ahead of time unless you get it down on paper in the form of a plan.  Without a plan, a healthcare Power of Attorney, you truly have no idea who will be making decisions for you, and if they have a fully informed opinion to make the best decisions on your behalf.

 

Why Do I Need a Separate Power of Attorney for Healthcare if I Already Have One for Financial Issues?

When we start to talk about estate planning, we quickly start to go into details about different types of power of attorney.  And yes, there are many powers of attorney.

Often, the first aspect considered in an estate plan is wealth planning.  When you pass, expected or otherwise, how will your assets be managed, transferred, protected from Uncle Sam, etc?  A financial power of attorney grants someone you designate as the responsibility and authority to manage your financial assets and estate in your absence or in your incapacity.

On the other hand, a healthcare power of attorney (HPOA) takes care of your health by making your healthcare decisions for you.  This is not a financial or estate management directive. Responsibilities of your HPOA may include directing how your treatment plan should be administered if you require one, the need and duration of ventilation in case of brain damage or coma, or even which medications you might be taking (at the recommendation of your treating physician, of course).

 


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Health & Wealth

Note: The goal of your estate plan is to manage and plan for things that will eventually impact your health and your wealth.  Health and wealth are very big topics, but with good planning, they can be managed throughout your life, in sickness, and in health, and even when you pass.

 

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