The question “Do you have a DPOA” is something everyone should be able to answer “yes” to. But what exactly is a DPOA? A DPOA or Durable Power of Attorney is an essential estate planning document to assist you during your lifetime. There are two different kinds: one for finances and one for healthcare.
The Durable Power of Attorney for Finances:
The Durable Power of Attorney for Finances is a legal document in which you nominate an “agent” to act on your behalf regarding your financial affairs. The Durable Power of Attorney most importantly can be used in the event you are no longer able to handle your affairs due to illness, accident, or other causes. Without a Durable Power of Attorney for Finances in place, your loved ones may need to go to court to have a conservator appointed to manage your financial affairs. This is a long and expensive process which sometimes can result in having the court select someone you would not have chosen to manage your affairs and assets. Having a Durable Power of Attorney for Finances in place often prevents the need for you and your family to go through such a process.
The Durable Power of Attorney for Finances also allows for your agent to assist you while you are still capable of making your own financial decisions. This can be helpful for the Michigan Snowbirds who may need their agent to handle some financial affairs for them while they are out of town.
The financial agent has powers to handle things such as:
- Collection and management of your real and personal property
- Buying and selling real property
- Banking – such as making deposits and signing checks.
- Paying your bills.
- Business decisions
- Handling your tax returns
- Assisting with your governmental and employment benefits
- Legal and administrative proceedings
The Healthcare Power of Attorney:
A Healthcare Power of Attorney or sometimes called a “living will” gives an agent the authority to make medical decisions on your behalf. Usually, your doctors have deemed you unable to make your medical decisions for your agent to be able to use this document. This inability can be for a temporary or permanent condition. Without this document, the hospital staff cannot talk to your family and help them make decisions about your care. Or your family may need to go to Court to have a Guardian appointed to make those decisions, which is a time consuming, emotional, and expensive process.
A healthcare power of attorney appoints the person you trust to make your healthcare decisions on your behalf, authorize the hospital to release medical records or information to your agent, outline some of your wishes for life extending efforts in extreme situations, and allow for your agent to assist you in getting mental health treatment.
Choosing an Agent:
So, who should you choose to be your agent? This person should be an individual that you trust and who understands what your wishes would be should you find yourself unable to make financial and healthcare decisions. Make sure you have an alternate agent in case the primary should find themselves unable to act. Our office recommends that you sit down with your agents and explain to them your wishes. They are your fiduciary and must adhere to what you would want done on your behalf. Likewise, your agents must sign acceptances saying that they will not take advantage of the position being given and listen to your wishes.
Summary:
Durable Powers of Attorney for Finances and Healthcare are great documents for people who want to make sure that their affairs are managed according to their wishes, even if they are incapacitated. They are a cost effective and essential tool for avoiding costly guardianships and conservatorships and ultimately save your family and your estate time and money.
At Martin L. Rogalski, PC we understand that everyone has their own goals and needs for their estate planning. Our attorneys and staff will guide you through the process of making sure that you have documents in place to reflect your wishes during your lifetime and after your death.
