September 5, 2024
By Lyzz Leise and Jasmine Beringer
Rembolt Ludtke Estate Planning and Administration Practice Group
When it comes to safeguarding your future and the future of your loved ones, a well-crafted estate plan is essential. Among the most critical components of any estate plan are a General Durable Power of Attorney and a Health Care Power of Attorney, which allow you to designate who you want to make certain decisions for you when you are unable to do so. The individual you designate is referred to as your “agent” and must act in your best interest.
A General Durable Power of Attorney is often thought of as a financial Power of Attorney. It allows you to choose which individual(s) will act on your behalf in making financial decisions. Depending on the scope of the Power of Attorney document, your agent will often have the power to write checks for you, talk to your banks, settle your accounts, cancel or make payments on your credit cards, manage your real estate and other assets, etc.
A Health Care Power of Attorney enables you to appoint someone to make medical decisions for you when you are incapacitated. This Power of Attorney often allows your agent to access your protected health care information, talk to your doctors, determine which medications will be administered, etc. Both documents empower you to direct your chosen representatives to follow specific instructions regarding financial and medical decisions.
Consider a scenario that highlights the importance of a Health Care Power of Attorney: Your 20-year-old son, Matt, goes on a skiing trip to Colorado during spring break and suffers a severe accident that leaves him in a coma. Without a Health Care Power of Attorney, you may be unable to transfer him to a hospital closer to home in Nebraska, as Matt is legally an adult. In such cases, you might need to obtain an emergency Power of Attorney or a similar document, which can be a time-consuming and stressful process. This and other similar situations are avoided with proper planning.
Given the significance of these documents, it is essential to review your estate plan to ensure they are included and up to date. It’s important to be aware that certain Power of Attorney documents are limited in scope – applying only to a specific bank account or for a certain hospital stay. Even if you believe you have the necessary documents in place, it’s crucial to have an attorney review them to confirm they can be used going forward in the way you intend.
If you have any questions, concerns, or would like to discuss Power of Attorney documents in more detail, please don't hesitate to contact us.
This article is provided for general information purposes only and should not be construed as legal advice. Those requiring legal advice are encouraged to consult with their attorney.
