8. Understanding Powers of Attorney and Living Wills

Today’s discussion focuses on three crucial estate planning documents: the Power of Attorney, the Medical Power of Attorney, and the Living Will. These documents are not just for the elderly or the wealthy, but essential for anyone over the age of 18.

The Reality of Adulthood: A Lesson for Parents

Every parent who has sent a child off to college knows the frustration of suddenly losing access to their child’s financial, academic, or medical information. This is not by mistake, it is the law. Once a child turns 18, they are legally an adult, and parents no longer have legal authority to act on their behalf.

Many parents are shocked to learn this, especially when they are still paying tuition, housing, and other expenses. With proper planning, however, this situation can be avoided. Establishing these documents early ensures that you can step in if your child needs help, no matter how far away they may be.

Power of Attorney: Authority Over Financial Decisions

A Power of Attorney (POA) is a legal document that allows one person—the agent or attorney-in-fact—to act on behalf of another individual, known as the principal. It gives the agent the ability to manage financial and legal matters as authorized by the principal.

A Power of Attorney can be tailored to meet a person’s unique needs. It may grant broad authority to handle nearly all financial affairs or limit authority to specific actions or time periods. It can also be designed to take effect immediately or only under certain conditions, such as incapacity.

Choosing the Right Agent

Selecting the right person as your agent is critical. Many people choose a spouse or adult child, but anyone you deeply trust can serve. The agent must be at least 18 years old and mentally competent. Integrity and reliability are far more important than financial expertise.

Medical Power of Attorney: Protecting Your Health Decisions

A Medical Power of Attorney—sometimes called a health care proxy—allows you to appoint someone to make medical decisions on your behalf if you are unable to do so. This document must be signed while you are mentally competent and takes effect only when you cannot make decisions for yourself.

If you do not have a Medical Power of Attorney and become incapacitated, the court may need to appoint a guardian or conservator to make medical decisions for you. This process can be time-consuming, expensive, and emotionally draining for your family. In emergency situations, that delay can make a critical difference.

Living Will: Your End-of-Life Wishes

A Living Will is a legal document outlining your preferences for medical treatment in end-of-life situations. It provides guidance for healthcare providers and loved ones about treatments such as resuscitation, intubation, or artificial nutrition and hydration.

Unlike a Medical Power of Attorney, which covers temporary incapacity, a Living Will only applies if you are permanently incapacitated or in a terminal condition. It may also include your preferences regarding organ donation for transplantation or medical research.

Final Thoughts

Every adult, especially those over 18, should have a Power of Attorney, a Medical Power of Attorney, and a Living Will in place. These relatively inexpensive documents offer peace of mind, ensuring that your wishes are respected and that your loved ones are empowered to act when necessary. Listen to Protecting Yourself with Powers of Attorney and Living Wills >

If you have not yet established these documents, I strongly encourage you to do so. Do not wait until it is too late—because when the need arises, preparation will already have made all the difference. To get started, contact Pickler Law at 901.244.4242.