What is a durable power of attorney and when is it necessary?

What is a Durable Power of Attorney for Health Care?

A durable power of attorney is a written legal document by which an individual, the principal, appoints another person, an attorney-in-fact, to carry out specific actions on behalf of the principal. Generally, a power of attorney grants the attorney-in-fact extensive authority to manage the principal’s assets and make decisions on their behalf. Traditionally, a Power of Attorney ceases to be valid upon the principal’s incapacitation or death. However, a Durable Power of Attorney remains in effect even if the principal becomes incapacitated. In order to be considered “durable,” the document must explicitly state its continued effectiveness after the principal’s incapacitation.

This legal instrument enables you to appoint an individual to handle your personal financial matters in case of your incapacity. If you do not have these documents, you and your family would have to go through a legal process known as guardianship and conservatorship, wherein a court decides who will make decisions on your behalf.

The law allows individuals to appoint someone to make decisions about medical treatment options on their behalf in case they become incapable of making these decisions. This can be done through the use of a “Durable Power of Attorney for Health Care” or Health Care Proxy, where a designated person or persons assume the responsibility of making such decisions. Individuals have the option to grant their health care agent the authority to decide on all health care matters or only certain treatments. They may also provide specific instructions for their agent to follow. In this way, the health care agent ensures that health care professionals adhere to the individual’s wishes and can adapt these wishes as their medical condition evolves. Hospitals, doctors, and other health care providers are legally bound to honor the decisions made by the appointed agent, treating them as if they were the individual’s own.

The document appoints a person to handle all financial matters.

A durable power of attorney appoints a representative to handle your finances.
A durable power of attorney differs from a typical power of attorney in that it remains valid when the person appointing the representative becomes incompetent.

Most people are familiar with the concept of a power of attorney, and some have never heard the term ‘durable power of attorney,’ but a durable power of attorney is a crucial component of a comprehensive estate plan. A durable power of attorney is established to ensure that in the event you become incapacitated, but are still alive, you have designated someone else who can make decisions on your behalf.