Planning for Incapacity

What is a Durable Power of Attorney?

Who can create a Power of Attorney?

Who may act as an agent under a Power of Attorney?

How does an agent use a Power of Attorney?

What is a Durable Power of Attorney for Health Care?

What is a Living Will?

What is a HIPPA Authorization?

Q: What is a Durable Power of Attorney?

A Durable Power of Attorney allows you to carry on your financial affairs in the event that you become disabled. Unless you have a properly drafted Power of Attorney, it may be necessary to apply to a court to have a Guardian or Conservator appointed to make decisions for you when you are disabled.  This Guardianship process is time-consuming, expensive and emotionally draining.

There are generally two types of Durable Powers of Attorney: a "Present" Durable Power of Attorney, in which the power is immediately transferred to your Attorney In Fact; and a "Springing" or Future Durable Power of Attorney that only comes into effect upon your subsequent disability as determined by your doctor.  When you appoint another individual to make financial decisions on your behalf, that individual is called an "Attorney In Fact".  Anyone can be designated - most commonly your spouse or domestic partner, a trusted family member or a friend.  Appointing a Power of Attorney assures that your wishes are carried out exactly as you want them, it allows you to decide who will make decisions for you, and it is effective immediately upon subsequent disability.

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Q: Who can create a Power of Attorney?

Generally, any individual over 18 years of age, who is a resident of the state in which it is created and who is legally competent can create a Power of Attorney.

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Q: Who may act as an agent under a Power of Attorney?

In general, an agent may be anyone who is legally competent and over the age of 18. Often, it is a family member, such as a spouse, a sibling or a child. While more than one person can be named as an agent, naming two or more individuals to act together can prove inconvenient, especially if a Power of Attorney must be exercised promptly.  It is usually more prudent to name one individual as agent and then another as an alternate.

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Q: How does an agent use a Power of Attorney?

Your agent presents the original Power of Attorney document to the other party involved in the transaction and signs documents on your behalf.  Your agent signs his or her own name, followed by the words "Attorney in Fact for ________.”

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Q: What is a Durable Power of Attorney for Health Care?

The law allows you to appoint someone you trust - such as a family member or close friend - to decide about medical treatment options if you lose the ability to decide for yourself.  You can do this by using a "Durable Health Care Power of Attorney," or Health Care Proxy, where you designate the person or persons to make such decisions on your behalf. You can allow your health care agent to decide about all health care or only about certain treatments. You may also give your agent instructions that he or she has to follow. Your agent can then make sure that health care professionals follow your wishes, and your agent can decide how your wishes apply as your medical condition changes. Hospitals, doctors and other health care providers must follow your agent's decisions as if they were your own.

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Q: What is a Living Will?

A Living Will informs others of your preferred medical treatment should you become permanently unconscious, terminally ill, or otherwise unable to make or communicate decisions regarding treatment. Almost all states have instituted Living Will laws to protect a patient's right to refuse medical treatment.  Even if you receive medical care in a state without Living Will laws, this document is useful to a court trying to decide what an unconscious patient would want. In conjunction with other estate planning tools, it can bring peace of mind and security while avoiding unnecessary expense and delay in the event of future incapacity

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Q: What is a HIPPA Authorization?

Some medical providers have refused to release information, even to spouses and adult children authorized by Durable Health Care Powers of Attorney, on the grounds that the 1996 Health Insurance Portability and Accountability Act, or HIPAA, prohibits such releases.  To ensure that your Agents and family will not run into such problems, you should sign a HIPAA Authorization Form that allows the release of medical information to your Agents, your Successor Trustees, your family and other people whom you designate.

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The attorneys of O’Diam & Estess Law Group, Inc., assist individuals, families and business owners throughout the Miami Valley, including Dayton, Kettering, Oakwood, Centerville, Beavercreek, Xenia, Springfield, Springboro and Troy, in Greene County, Montgomery County, Clark County, Warren County and Miami County.

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