The Powers That Be

The Powers That Be
Defining durable power of attorney and medical power of attorney

How do you select your power of attorney? Will you know what to do if someone asks you to be their power of attorney? In either case, are you clear on the roles of general power of attorney and medical power of attorney? We turned to the Office of the Minnesota Attorney General, fivewishes.org, and freewill.com for answers to the most frequently asked questions. 

General Power of Attorney
Power of attorney is the authority to make legally binding decisions on someone's behalf, including financial decisions. You are called the “principal” (person giving the power) within the power of attorney document. The person who will take care of things for you is called the "attorney-in-fact.” This person does not have to be a lawyer, but it should be someone you trust a great deal. 

A general power of attorney authorizes your agent to conduct your business and affairs. A limited or special power of attorney authorizes your agent to conduct specified business, perform specified acts, or make limited decisions on your behalf. 

A general power of attorney only operates while you are still coherent and mentally capable. It automatically expires upon incapacity or death.

Durable Power of Attorney
When a power of attorney is considered “durable,” it remains valid even if you become incompetent or incapacitated. Durable powers of attorney can be prepared to take effect immediately or to go into effect only if you cannot make decisions for yourself (called a “springing power of attorney”). The power of attorney form should indicate what kind of power of attorney you want. 

If you become incapacitated and haven’t prepared a durable power of attorney for finances, a court proceeding for conservatorship is probably inescapable. Your spouse, closest relatives, or companion must ask a court for authority over some of your financial affairs. 

If you are married, your spouse has some authority over the property you own together. They may pay bills from a joint bank account. However, there are significant limits on your spouse’s right to sell property that both of you own.

Medical Power of Attorney
In Minnesota, a durable power of attorney for health care is called a living will or health care directive. This document gives someone legal authority to make important decisions about your medical care. It is important if your attending physician determines you can't communicate your health care decisions due to physical or mental incapacity. These decisions could be about treatment options, medication, surgery, end-of-life care, etc. The person you name in your medical POA to make these decisions is your healthcare agent or proxy.

Something to note is that one state's health care directive does not always apply to other states.
If you’re looking for a place to start, 5 Wishes may be a good way to start. Why? It's written in everyday language, making it easy to understand and complete.

• It covers personal, spiritual, medical, and legal wishes in one document.
• It allows your family or caregiver to know exactly what you want, so they don't have to guess
• It's legally valid in nearly every stat

You may wish to consult an attorney for help creating your power of attorney and health care directive documents, but the most important thing is getting it done. If the time comes when you can no longer care for yourself or make your own decisions, you want someone you trust lined up to make them for you.