Estate Planning

A power of attorney is a legally binding document that allows you to appoint someone (attorney-in-fact) to manage your financial affairs. This document is generally used when you unable to manage your own finances due to an illness, aging, a disability, or you are simply going to be away for an extended period of time. A Power of Attorney can be created by any person 18 or older.

There are two different types of Powers of Attorney. An immediate Power of Attorney takes effect immediately after signing. A springing Power of Attorney only takes effect if a doctor certifies in writing that you have become incapacitated.

A Power of Attorney is one of the most important estate planning documents that a person can sign because without this document your family will end up having to file a conservatorship in the probate court, which is expensive and time consuming.

A Health Care Proxy is a legal document which tells medical providers (doctors, hospitals, etc.) who should make health care decisions for you if you are unable to make your own decisions. The reason may be that you are unconscious, cannot communicate or your mental state has deteriorated to the point where you are not capable of making informed decisions. A Health Care Proxy may also be referred to as health care surrogate or durable medical power of attorney.

The person you name in your Health Care Proxy to make medical decisions on your behalf is called your agent or surrogate.

Many people name their spouse or adult children as their health care proxy. However, this is not a requirement. You can name anyone you trust as your health care agent, even if they are not a family member. You can also change your named agent any time by signing a new Health Care Proxy and providing it to your family and doctor.

People often confuse a Living Will with a Health Care Proxy.  A Living Will, in some states, is a legally binding document. However, Massachusetts law does not recognize Living Wills.

You can draft and sign a Health Care Proxy, giving a trusted individual the authority to make medical decisions on your behalf. You can, and should also give that person as much information as you can about what you wishes are for end-of-life matters.  In the end though, in Massachusetts, the person you designate as your health care agent will have the power to make all your end-of-life decisions.

Therefore, it still makes sense to sign a Living Will. For one, it is something your health care agent can refer to when making difficult decisions.  For another, if you end up injured in a state that does recognize Living Wills, it can help ensure that your end-of-life wishes are followed.