Any mentally competent adult can sign a power of attorney (POA). The POA document should spell out the areas in which the “attorney-in-fact” or “agent” (the person who has been granted the POA) can act. This may include receiving income, paying bills, banking, selling real estate, or other matters as designated. It may be limited to certain transactions. In order for the authority of the agent to continue past the grantee’s incapacity, it must be “durable.” This is an important distinction, and when planning for long term needs, a durable power of attorney (DPOA) can be an important tool for managing financial concerns.

Since POAs and DPOAs are immediately effective, they are useful tools for nursing home residents who may need to designate a more mobile person to handle their banking, apply for benefits, etc.

Power of Attorney for Health Care (POA/HC)

This document allows competent individuals to designate an agent to make medical decisions for themselves following their incapacity. These agents are authorized to act only after incapacity occurs, which must be certified by two doctors. This document can specifically authorize the agent to admit the individual to a nursing home and to make decisions involving critical care. The POA/HC document, however, cannot be used to authorize admissions to psychiatric hospitals. Note also that the POA/HC, by itself, does not grant authority for financial management.

Note: The POA/HC allows more comprehensive decisions to be made about life sustaining treatments than a living will (Declaration to Physicians), which allows discontinuation of life sustaining treatment only in the event of a terminal illness. You may choose to have one, either, or both documents, but if you do use both, they should not contradict each other.

<<<Back