A power of attorney and a health care proxy are both core parts of an estate plan, regardless of your age or financial position. Because of the broad powers typically granted to agents you appoint in these two documents, it is important to be careful in your selection of agents. So, let’s discuss how to choose your agents.
Power of Attorney
A power of attorney designates someone you trust with taking care of your financial affairs if you become unable to do so. A power of attorney may be helpful in avoiding confusion among your family members and loved ones by putting specific people in charge of your financial affairs ahead of time. For example, you could appoint your spouse as primary agent and one or more of your children as successor agents.
An agent under a power of attorney can typically stand in your shoes and conduct any financial transaction you could, such as paying bills, managing investments, and selling property. They may even be able to make gifts on your behalf if it is in your best interest to do so (for Medicaid or tax planning, as examples). As such, an agent should have a good financial sense, be trustworthy, and be able to spend the time necessary to manage your finances if the time came.
You are able to name co-agents who would serve at the same time. If you name co-agents, you can allow them to act separately or require them to act together. Typically, acting separately is easier, but requiring them to act together provides more checks and balances. However, if you have specified that the co-agents must act together and they disagree about what action is in your best interests, they could find themselves in court, needing a judge to act as the tiebreaker, so to speak. Waiting for a judge’s decision can cause a delay in situations where this is not desirable. For example, if a health aide needs to be hired, or government benefits need to be applied for, and there are disagreements, this could impede appropriate care.
Health Care Proxy
A health care proxy allows you to designate someone to make health care decisions for you if you are unable to do so yourself. The role of a health care agent includes:
- Reviewing and staying informed about your medical information
- Consulting with the health care team and asking questions about your status and treatment
- Consenting to and declining medical tests and treatments on your behalf
- Deciding where you receive care, including hospitals, assisted living, and nursing care
Health care agents are often called upon to make end-of-life decisions. For instance, doctors might ask your agent to decide whether to prolong your life or allow you to pass naturally. Your agent might be responsible for consenting on your behalf to medical research or experimental treatments. When your agent makes end-of-life decisions for you, following your wishes is paramount. You may specify those wishes in a living will, which is typically a separate document from your health care proxy.
There are many individual factors that would influence how you choose your agents, including family dynamics. It is essential to consult with an experienced elder law and estate planning attorney to ensure that you make the most informed decision. Contact Kurre Schneps LLP today to discuss how we can help.
