Designating a POA is important because it allows someone you trust to manage your legal and financial affairs and healthcare treatment on your behalf if you are unable to do so.
If you do not have a POA and face an emergency, an accident or injury, or become permanently incapacitated, the court may appoint a guardian or conservator to make decisions for you. This process can be time-consuming and costly and may result in someone being chosen to make decisions for you who you might not have selected yourself.
If you are considering designating a POA, you may also want to consider designating a MDPOA.
Medical Durable Power of Attorney (MDPOA) vs a General Power of Attorney (POA)
A General Power of Attorney grants a designated person (the agent or attorney-in-fact) broad powers to manage your financial and legal affairs. This can include:
- Handling Bank Accounts: Managing deposits, withdrawals, and transactions.
- Managing Investments: Buying, selling, and managing stocks, bonds, and other investments.
- Paying Bills: Ensuring that all your bills are paid on time.
- Real Estate Transactions: Buying, selling, or managing property.
- Business Decisions: Operating business interests in your name.
- Legal Matters: Engaging in lawsuits, signing legal documents, and other legal activities.
A General Power of Attorney (POA) is revocable, allowing you to revoke the POA at any time as long as you are mentally competent. Typically, a General POA ends if you become incapacitated unless it is designated as a Durable Power of Attorney, which remains in effect even if you lose mental capacity.
Medical Durable Power of Attorney (MDPOA)
A Medical Durable Power of Attorney, on the other hand, is specifically designed to grant someone the authority to make healthcare decisions on your behalf if you are unable to do so yourself. This can include:
- Medical Treatments: Deciding on the acceptance or refusal of medical treatments.
- Healthcare Providers: Choosing doctors and medical facilities.
- Living Arrangements: Deciding where you should live for ongoing care.
- End-of-Life Decisions: Making decisions about life support and other end-of-life care based on your wishes.
A Medical Durable Power of Attorney (MDPOA) grants the agent specific authority, limiting their powers to medical and healthcare decisions. It only becomes active when you are deemed incapacitated by a medical professional, and it remains in effect even if you become incapacitated. An MDPOA often includes your healthcare preferences and instructions to guide your agent’s decisions.
One similarity between general POA and MDPOA is that the authority of both types of agents ends at your death.
Why Are Both Important?
Both types of POA constitute a comprehensive plan to manage your affairs, ensuring that your wishes are respected and your needs are met even if you can’t make decisions yourself.
Here are a few tips to select the right people to act as your agents:
- Trustworthiness: Choose someone you trust.
- Capability: Ensure they are capable and willing to handle the responsibilities.
- Availability: They should be readily available to act when needed.
- Understanding Your Wishes: Make sure they understand and respect your values and preferences.