What is a Power of Attorney? What is an Advanced Healthcare Directive?

Mar 19

A Power of Attorney and Advanced Healthcare Directive are legal forms that give authority to another person to act on your behalf in certain circumstances.

Power of Attorney

A Power of Attorney deals with your assets and debts, to include your home, cash accounts, retirement interests, car, personal property, and insurance. The Power of Attorney lets you delegate authority to make decisions regarding these assets to another person, either in all circumstances or in limited circumstances. For example, you might be closing on a house, but have pre-planned and paid for travel. You could delegate your authority to sign the closing documents, sign for the mortgage, transfer funds from your bank account, etc. so that closing on the home can continue while you are away. The Power of Attorney could be revoked or could automatically terminate once closing was complete.

Alternatively, you could use a Power of Attorney as a part of your long-term estate planning. A Power of Attorney form can become effectively immediately and not terminate, even if you become mentally incapacitated in the future. In this circumstance, the Power of Attorney is used to make sure you have someone of sound mind with authority to access your assets to make sure your bills continue to be paid, and that you have cash on hand to be able to purchase life necessities.

The Power of Attorney also allows you to state who you wish shall serve as the guardian of your person or property, if that becomes necessary.

Advanced Healthcare Directive

The Advanced Healthcare Directive is a form of long-term estate planning, as well as an unforeseen emergency tool. Anyone could encounter an unforeseen emergency, leaving them in the hospital without the ability to confer with doctors for their care or are simply aging and looking to round out their estate planning.

The Advanced Healthcare Directive is a set of instructions to another person with respect to the type of care you would like to receive in certain circumstances. In the event that you have a minor child, the Advanced Healthcare Directive also includes an option for you to designate who you would like to take care of the minor child in the event the parents are unable to do so.

If you do not have these documents currently in place, call 240-396-4373 to schedule your appointment.

Leslie Miller

Leslie Miller has prepared hundreds of retirement orders for federal, state and local governments as well as a wide variety of private, religious, and educational organizations. The experience with so many retirement plans helps Leslie advise clients with their own retirement division goals.