When Margaret’s husband, Tom, suffered a severe stroke at 68, she assumed she would automatically have the authority to manage their finances and make medical decisions on his behalf. They had been married for over 40 years, after all. But when Margaret tried to access his bank account, the bank refused to give her control. The bank told her that without a Power of Attorney (POA), she had no legal authority to act on his behalf. Similarly, when she attempted to discuss Tom’s care with his doctors, they told her that without a Health Care Proxy (HCP), she had no legal authority to make medical decisions on his behalf.
Margaret was devastated. To gain control over their finances and make medical decisions for Tom, she had to go through the lengthy and expensive process of petitioning for guardianship—a situation that could have been completely avoided if they had put a POA & HCP in place.
What Is a Power of Attorney?
A Power of Attorney is a legal document that allows you to appoint someone you trust to handle your affairs if you become incapacitated or unable to act on your own. There are different types of POAs, each serving a unique purpose:
- General Power of Attorney: Grants broad powers over financial and legal matters.
- Durable Power of Attorney: Remains in effect even if you become incapacitated.
- Limited (or Special) Power of Attorney: Authorizes someone to act in specific situations or for a limited time.
Why You Need a Power of Attorney
People often assume that their spouse or adult children will automatically be able to step in and manage their affairs if something happens to them. But legally, that’s not the case. Without a POA, your loved ones could face unnecessary legal battles, delays, and expenses.
Imagine being in an accident or suffering from an unexpected illness—without a POA & HCP, no one would be able to access your accounts, pay your bills, or make critical medical decisions. Your family would have to go to court just to obtain the authority to help you.
What Is a Healthcare Proxy?
A Healthcare Proxy is a legally appointed person who is authorized to make medical decisions on your behalf if you become unable to communicate your own wishes due to illness or injury, essentially acting as your representative in such situations; they are often a close family member or trusted friend who knows your values and preferences regarding medical treatment.
Why You Need a Healthcare Proxy?
Having a healthcare proxy is a key part of an effective estate plan, ensuring that your health and well-being are in the hands of someone you trust. Some of the key reasons for having a healthcare proxy are:
- Ensures Your Wishes Are Followed – Your proxy will make medical decisions based on your preferences, values, and prior discussions.
- Prevents Family Disputes – Without a designated decision-maker, family members may disagree on your care, leading to conflicts or delays in treatment.
- Provides Clarity for Doctors – Medical professionals will have a clear point of contact for critical decisions, avoiding uncertainty about who should be consulted.
- Covers Unexpected Emergencies – Accidents or sudden illnesses can leave you incapacitated at any age, making a healthcare proxy important for everyone, not just the elderly.
- Avoids Court Intervention – Without a healthcare proxy, loved ones may have to go through a lengthy and costly legal process to gain decision-making authority.
- Grants Flexibility in Decision-Making – A proxy can make real-time decisions based on the specific situation, ensuring appropriate and timely medical care.
Don’t let your loved ones go through what Margaret did. Planning ahead is simple, and it ensures that the people you trust are legally able to act on your behalf when it matters most. Register for a free estate planning workshop to learn more about protecting yourself and your family.
