Powers of Attorney
Durable Power of Attorney (DPOA)
A DPOA is a legal document in which one person (the "Principal") grants authority to another (the "Agent") to carry out some, or all, of the transactions that the Principal is legally authorized to do. There are many reasons for granting this authority to an Agent, but generally, such authority is intended to be used only when the Principal is incapacitated.
Should You Rely on a DPOA?
The alternative to relying on a DPOA is a Revocable Trust. When assets are titled under the name of a Revocable Trust, the Successor Trustee has authority to manage the assets in the event of the trust-maker's incapacity (with the definition of incapacity provided in the terms of the trust).
Typically, the certification of one or two physicians that the trust-maker is not capable of handling their financial affairs is required. Although a POA is an important component of a good estate plan, a fully funded Revocable Trust is a better planning solution.
Health Care Power of Attorney (HCPA)
A Health Care Power of Attorney is a legal document in which one person (the "Principal") grants authority to another person (the "Agent") to make health care decisions in the event of the Principal's incapacity.
A HCPA may also contain the Principal's directives with regard to the withholding or termination of life-support, but such life-support directives are usually contained in a separate document called a Living Will.
Key Decisions
There are 2 key decisions to be made when creating a HPOA:
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Who will make the determination that you are not capable of making your own health care decisions. Typically, the person authorized to make this determination is your family physician or a treating physician, but family members/loved ones may also be included in that determination.
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Who will make your health care decisions after you've been deemed incapacitated?
Some things to consider:
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Is it appropriate to appoint more than one individual, and if so, how many?
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If you appoint two individuals, is agreement between them required or can they act independently of each other?
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If more than two individuals, is unanimous or majority consent required to act?
While choosing a medical professional to make your health care decisions might be appropriate, what's more important is to choose someone who has the ability to ask your physicians the right questions and make well-reasoned decisions.