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You May Have a Will, but What About a Power of Attorney and Living Will?

Having a Will is not nearly enough protection. Today, we are living longer and over 50% of the American population today will at some point need assisted and/or long term care, whether that be at home or at a nursing home. It is crucial that all Pennsylvanians have a DURABLE POWER OF ATTORNEY, a MEDICAL POWER OF ATTORNEY, and a LIVING WILL.

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.

Generally, any individual over 18 years of age who is a resident of the state in which it is created and who is legally competent can create 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.

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”.

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.

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.

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.

Thank you for your interest in these important estate planning tools. Please Contact Us if you wish to schedule a free consultation with our law firm by clicking Here.

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