Understanding Power of Attorney: Financial vs. Medical
A Power of Attorney (“POA”) is a written document where one person (the “principal”) appoints another person to act with authority on their behalf to perform acts specified in the document. This trusted individual (the “agent” or “Attorney-in-Fact”) can be given the authority to manage your finances, make medical decisions, or handle other responsibilities.
But not all POAs are created equal. Financial and medical POAs serve very different purposes, and understanding those differences is key to making sure your wishes are fully honored in any situation.
POA for Financial and Legal Affairs
A POA for Financial and Legal Affairs gives your named agent authority to manage your financial life and legal matters if you are unable or simple unavailable to do so yourself. This includes the power to handle banking, bill paying, investing, buying or selling property, and making or receiving gifts.
When creating this POA, it is important to choose an agent who is trustworthy and financially responsible. It may also be necessary to update these documents as your financial situation or relationships evolve.
POA for Personal Affairs and Health Care
A POA for Personal Affairs and Health Care empowers a trusted agent to manage your personal and healthcare decisions. The appointed agent is authorized to consent to, refuse, or withdraw medical treatment based on your known wishes or best interests. They can access your full medical history, interact with healthcare providers, hire caregivers, and approve of medical treatment. Beyond medical care, the agent can arrange your housing in a facility, provide for companionship, and make funeral or anatomical decisions if you haven’t already.
When choosing an agent for this POA, it is important to choose an agent who knows your values and healthcare preferences, is willing to act on your behalf, and will act in your best interest.
Conclusion
It is important to note that if a POA does not give you the authority to do something specific in writing, you may not be able to take that action. At Bluegrass Elderlaw, we will work with you to draft your POAs to ensure that your needs are covered. We provide a personalized experience by taking the time to truly understand your unique situation and wishes. Whether you need a financial POA, medical POA, or both, we will guide you through the process, ensuring that the documents are tailored to your specific needs and that you fully understand the extent of your powers. Our goal is to ensure that you are protected and have the peace of mind that your decisions are respected, no matter what the future holds.
Disclaimer: This post is for general informational purposes only. To learn more about a power of attorney, visit our website or call us today at (859) 281-0048.