Incapacity Planning: Powers of Attorney and Health Care Directives

 

A Power of Attorney and Health Care Directive (or Living Will) are two very important, powerful and essential estate planning documents all adults should have. These documents can help avoid the costly expense of court involvement if you become unable to make decisions.

A Power of Attorney allows you to give legal authority to an agent, or attorney-in-fact, who can handle financial affairs during your lifetime.

A Health Care Directive allows you to both appoint a health care agent to make medical decisions for you if you cannot communicate and to give specific directions regarding your health care wishes, including organ donation and funeral and burial arrangements.

While you may select different individuals for a Power of Attorney and a Health Care Directive since the responsibilities are very different, it is important to select trustworthy individuals who are willing to carry out your wishes and look after your best interests.