How to Plan for Incapacity in Your Estate Plan: Choosing a Power of Attorney and Health Care Proxy

There is no escaping death. We understand that, so we make sure to prepare a will and name beneficiaries to ensure our assets are distributed according to our wishes and that our loved ones will be taken care of financially. But what many people don’t plan for is the possibility that something will occur that will leave them incapacitated. Incapacity can result from a variety of situations, such as severe illness, injury, or cognitive decline. When a person becomes incapacitated, they may not be able to make important financial or health care decisions.

Therefore, it’s crucial that you name a power of attorney and a health care proxy to make decisions on your behalf when you cannot do so. And while they both have decision-making authority, they each serve very different functions.

Power of Attorney

A power of attorney (POA) is a legal document that authorizes another person (agent) to handle certain matters on your behalf (principal). In California, there are different types of POAs.

• A durable power of attorney can be general or limited but remains in effect if you become incapacitated.
• A general power of attorney gives the agent broad powers to act on your behalf. It allows the agent to take a wide range of actions, such as managing financial and business transactions and handling legal affairs. However, without the durability clause, the agent’s power ends if you become incapacitated.
• A limited power of attorney is used when you want to give only specific powers to the agent.

Considering the responsibility placed upon the POA, you should consider the following factors when making a selection:

• Choose someone you trust implicitly to act in your best interests
• Ensure the person is capable of handling complex financial matters and understands your assets and obligations.
• You will want someone who communicates effectively and can make your preferences known regarding financial decisions.

Health Care Proxy

A health care proxy is a legal document that designates an individual to make medical decisions for you if you cannot do so. Here are some things to consider when making your choice:

• Select someone who understands your values and preferences regarding medical treatment to ensure they will make decisions that align with your beliefs.
• The person you choose should be geographically accessible
• Your health care proxy will need to be able to communicate with medical professionals and should be capable of explaining your wishes and making informed decisions.

After you appoint your agents, it’s crucial to communicate your wishes clearly. Provide your POA with information about your assets, liabilities, income, and expenses. Discuss your values, beliefs, and preferences regarding medical treatments and interventions with your healthcare proxy.

It’s essential to seek legal advice when creating your documents to ensure their validity. Our lawyers at Lonich Patton Ehrlich Policastri can guide you through the process. We are experienced in all estate planning matters and can help you tailor your documents to meet your specific needs.

Contact us for a free consultation by calling 408-553-0801.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.