By Atty. Reginald Harrion | Harrion’s Legal Brief
Most people associate estate planning with wills and what happens after death. But basic estate planning can also address what happens if you are alive but unable to make decisions for yourself.
Two documents are particularly important for basic estate planning: a durable financial power of attorney and a durable health care power of attorney.
What Is a Durable Financial Power of Attorney?
A durable financial power of attorney allows you to designate someone you trust, your “agent,” to handle financial and property matters on your behalf.
Depending on the document and applicable state law, your agent may be authorized to manage bank accounts, pay bills, handle real estate transactions, manage investments, deal with insurance companies, operate a business or take other financial actions.
The word “durable” is critical. Generally, a durable power of attorney is designed to remain effective even if you later become incapacitated.
Without one, your family may have to seek a court appointment of a guardian, conservator or similar legal representative before someone can legally manage certain aspects of your financial affairs.
What Is a Durable Health Care Power of Attorney?
A durable health care power of attorney, sometimes called a health care proxy or medical power of attorney, allows you to appoint someone to make health care decisions for you if you become unable to make or communicate those decisions yourself.
Your agent may be called upon to communicate with physicians, access medical information, consent to or refuse treatment, and make other health care decisions according to your wishes and applicable law.
This document works hand-in-hand with your advance health care directives and other instructions concerning your medical care, if you have such documents.
Why Should You Have Both?
These documents address two very different areas of your life.
A financial agent generally does not automatically have authority to make your medical decisions, and a health care agent generally does not automatically have authority to manage your finances.
Having both documents in place can help ensure that someone you trust is prepared to act on your behalf if you become unable to make important financial or health care decisions yourself.
Estate planning is not just about what happens after you die. It can also be about protecting your wishes and preparing for the possibility that you may one day need someone to speak or act for you.
About the Author
Reginald Harrion has been licensed to practice law for over two decades. During that time, he has represented many clients, including corporations, government entities, nonprofits, small businesses and individuals. He has also served as an administrative hearing officer and a part-time judge.
A graduate of Tougaloo College, Harrion earned his Juris Doctor from the Mississippi College School of Law. He is currently admitted to practice law in Arizona, Colorado, Georgia, Michigan, Mississippi, Missouri, North Carolina, Ohio, Tennessee and Texas, as well as in several federal district and bankruptcy courts.
For more information, Reginald can be reached at Info@Harrionlaw.com.
This column is for general informational purposes and is not a substitute for your legal advice. Laws governing powers of attorney vary by state. Consult an attorney regarding your individual circumstances.
