What is Power of Attorney?
Healthcare Power of Attorney
A healthcare power of attorney, also known as a healthcare proxy or healthcare surrogate, is a legal document that allows an individual (referred to as the principal or grantor) to appoint another person (known as the healthcare agent or attorney-in-fact) to make medical decisions on their behalf if they become unable to do so due to incapacity or inability to communicate their wishes.
The healthcare power of attorney is an essential part of advance care planning, as it ensures that an individual’s healthcare preferences and treatment decisions are carried out when they are unable to make or communicate those decisions themselves.
Financial Power of Attorney
A financial power of attorney (POA) is a legal document that grants authority to an individual, known as the agent or attorney-in-fact, to manage financial and legal matters on behalf of the principal. The principal is the person who creates and grants the power of attorney.
With a financial power of attorney, the agent is given the power to handle various financial and legal affairs of the principal. This can include managing bank accounts, paying bills, filing taxes, buying or selling property, managing investments, signing contracts, and handling other financial transactions. The specific powers granted to the agent can be defined within the document itself and can be tailored to the principal’s specific needs and preferences.
Durability
This feature is important for situations where someone wants to ensure that their financial and legal affairs are properly managed if they are no longer able to handle them personally.