Much of Estate Planning is based around planning and preparing for a person’s passing. But what happens if you are alive but unable to make decisions for yourself? Car accidents, slip and falls, illness, and many other events can leave a person unable to make financial and medical decisions for themselves. These events are why a well-crafted Estate Plan includes both Financial Power of Attorney and Advanced Health Directives (Medical Power of Attorney).
A Power of Attorney is a document which allows another person (your agent) to operate on your behalf on issues of finance. This can include paying bills, doing your banking, buying, and selling property, entering contracts etc. Powers of Attorney can go into effect immediately or can be conditioned on a particular event. Most of the time in Estate Planning we use what are called “springing” Powers of Attorney. These only take effect after a certain date, or, more commonly, upon a declaration of incapacitation. This means that if you are unconscious, under the influence of medications, or for some other reasons unable to make decisions for yourself, your agent is granted the powers set forth by the Power of Attorney. Incapacitation can be declared either by a medical doctor or a judge, and your capacity can be restored by either a medical doctor or judge. Powers of Attorney are important documents for Estate Planning but can also be useful for clients who travel out of country often and may not be able to conduct their affairs while overseas.
An Advanced Health Directive is part Power of Attorney part medical decision guide. An Advanced Health Directive creates a Power of Attorney for heath care decisions. This Power of Attorney functions in the same way as a financial Power of Attorney but for medical decisions. An Advanced Health Directive should also include guidance for agents and doctors when it comes to those decisions. A well drafted Advanced Health Directive will include whether the client wishes to have extreme measures used to prolong life or whether a client prefers to have the right to die. Also Advanced Health Directives should include what should happen to a client’s body in case of death, should the agent be able to ask for an autopsy or make anatomical donations? New areas of law allow for Advanced Health Directives to include instructions should a client develop Dementia or Alzheimer’s, including feeding and hydration. Advanced Health Directives are and important part of any Estate Plan but can also be an important part of any planned medical procedure.
In conclusion Powers of Attorney for financial matters and Advanced Health Directives are essential parts of any Estate Plan. However, even if a client is not ready to set up an Estate plan these documents can be useful in assuring your financial and medical wellbeing.