A Power of Attorney That Meets Your Needs

It is common for clients with a simple will to have a simple power of attorney.  As few people have a simple estate, however, these documents are usually too simple to meet your estate planning requirements.  Good planning includes a power of attorney that meets your specific needs.

A "Statutory Short Form Power of Attorney" is the most common simple power of attorney, mostly because it can be drafted by simply checking a few boxes.  It has some advantages: it's easy to get, costs very little, and allows the person you appoint (the "attorney-in-fact") to take care of basic financial matters.  It also has serious disadvantages: decisions about your medical care are not allowed, gifting in excess of $10,000 to the spouse or children serving as attorney-in-fact in order to help avoid income and death taxes is not permitted, and if your attorney-in-fact is so inclined, he can clean you out right under your nose.

We favor a Springing Law General Durable Power of Attorney with detailed definitions and specific instructions designed and drafted to satisfy your financial goals, take into account your future medical desires, and leave in your hands the timing of when you give away the power to make decisions for yourself.

 A power of attorney should not be another cookie cutter document, but rather it must be carefully thought out to keep you in control of your life until the time you need help from someone you know and trust.

Health Care Directive

Formerly called the Living Will, the Health Care Directive helps you name your health care agent (usually a spouse or child) and provides instructions about your health care.  Whether you are temporarily incapacitated or a permanent resident of a nursing home, you have a right to require the people providing you care to maintain your comfort, hygiene, and human dignity.  In the HCD you state your feelings about the use of pain control, the use of life prolonging treatment, and your finances as they relate to health care.  Your loved ones cannot feel your pain or read your mind, so it's up to you to give them instructions in advance concerning these important matters.

HIPAA

Passed by Congress in 1996, the Health Care Portability and Accountability Act (HIPPA) made it possible for employees to take their health insurance with them when changing jobs.

This Act also generated a very restrictive system of privacy regulations in the medical field.  It's hard to believe, but today, your doctor can only talk to your spouse and children if you are present (in person or on the phone) or if you sign a medical authorization, now known as the HIPAA Authorization.

As with all your other estate planning documents, we can help you with the alphabet soup.