A power of attorney is a legal document which gives authority to someone to act in your place. A durable power of attorney allows someone to make legal decisions for you if you are unable to make them yourself, either on a temporary or permanent basis, if you are disabled mentally or physically.
Who are the people you would trust to make decisions about your health care? Who would you trust to handle your finances and legal affairs? Would it be the same person for both, or would one be more emotionally suited to making tough health care choices while another has a strong financial background? While a spouse or child may seem like the person to naturally select, you are free to choose whomever you think would be best suited for handling your day-to-day affairs. Above all, choose a person you completely trust.
In Michigan, powers of attorney for your financial affairs (called a Durable Power of Attorney) and your health care (called a Designation of Patient Advocate or Health Care Power of Attorney) are two separate documents signed by you and the people you choose to handle these issues. You may change who is designated as your power of attorney at any time by filling out new forms, or you can revoke one or both if you decide they are no longer needed. Any power of attorney ends at your death, so unless that person is also the personal representative for your estate, his or her legal ability to handle your financial affairs will end at that time.
Does the person you’re selecting as your patient advocate know what you would want in an emergency? Do you have religious convictions that would affect your choices? What would you choose for yourself if you knew you were going to be put on life support? Do you want a “do not resuscitate” order? How would your family members feel about these choices? Have you talked to them about these issues?
Communicating these wishes is especially important since health care decisions often have to be made unexpectedly and immedi¬ately. If your patient advocate knows exactly what you would want, it will make it easier for that person to make appropriate choices. It is also a good idea to have these important deci¬sions put in writing for your patient advocate to provide to medical caregivers.
A Health Care Power of Attorney only comes into effect when two physicians state you are incapacitated. What if you are not incapaci¬tated, but you wish your patient advocate to have access to your medical records and infor¬mation? It’s smart to include a provision for access to these records in a General Durable Power of Attorney which you make effective when you sign it. In addition, you can sign a Release of Medical Information for your advocate and have this on file with your physician.
In the age of identity theft, it is best not to share personal details—such as your social security number or banking information —unless there is a clear need. But the agent of your financial power of attorney or another appointed person should know where all of your important papers are, including, but not limited to, the following:
- Your will
- Powers of attorney
- Titles to all vehicles
- Deeds to all property
- Leases
- Loan documents
- Insurance papers
- Stocks and bonds
- Tax documents
- Employer-, private- or government-sponsored insurance benefits
Where should you keep these papers?
It is most helpful if you can keep all of your important documents in one place. A fireproof box or safe in your home may be the best suggestion, as long as someone else either knows the combina¬tion, has a key, or knows where to find either of these.
While a safe deposit box at a financial institution might seem to be the most logical choice, it has the drawback of requiring the personal representative named in your will to first get a court order to open it, which can be a time-consuming process. However, any person who is a joint holder of the box would be allowed access after your death.
In case of a medical emergency or your death, your loved ones will need to be able to get to these documents quickly, so a fireproof safe or lockbox in your home might be best.
If you’ve already written a will, have a pension or 401(k) plan, or insurance policies, have you checked to see if they’re up to date? Who are your beneficiaries? Have you removed former spouses and their relatives? Are all of these people still alive? Are they still the people you want to get your assets? Checking these documents regularly will keep them up to date and reflect your current wishes.