Two Types Of Power Of Attorney We All Need

Sorry for the delay everyone. It's been a busy week, but I wanted to get back to finishing the three major pieces of paperwork everyone should have (that is every adult - not just the elderly).

We talked about the Will and the Advanced Medical Directive in two previous posts. Now we will talk about the Power Of Attorney forms and what they are needed for.

As I said, every adult should have these forms made out signed, then stored in a safe place well before they are needed. If you make them out as a younger adult you can always change them during the course of your life and update them as events change and people in your life change. However the need for these can arise at any age so don't wait until it's to late!

There are two types of Power of Attorney designations you will want to consider. The first was touched on in my post on Advanced Medical Directives. This type you chose for Power of Attorney for Health Care - a PAHC, also referred to as your Patient Advocate. When you chose your PAHC, the person(s) should be the someone most likely to be available should you have a medical emergency and need someone to speak for you. Many times a spouse is chosen and then and alternate such as a child who lives close by, a sister or brother etc. As I mentioned in the post about AMD, it is important that these people have copies of your Advanced Medical Directive and know your wishes as written so they can follow them should the need arise. A particular instance that I can think of would be someone with deeply held religious views on things such as the use of blood. I know Jehovah's Witnesses do not accept blood transfusions, so a person who was to be a Patient Advocate for one of Jehovah's Witnesses would want to understand their religious view and agree to uphold it for them. Choosing your Power of Attorney for Health Care or Patient Advocate should not be a hasty decision, but one that is well thought out and talked out with the person chosen.

The second Power of Attorney is the one we are most familiar with and that is Power Of Attorney for Financial Transactions.This form too can be found on the Internet and printed off and filled out easily. However you must have this one witnessed and notarized for it to be accepted by your financial institutions. Once you complete it do not sign it until you are in front of the notary, as they have to physically witness your signature.

Your Power of Attorney for Financial Transactions designate should be your most trusted associate, for you will be giving them the power to run your finances (usually all of your money and assets) should you be unable to manage your affairs. This person can be given limited (such as bank accounts only) or broader  (such as real estate, stock as well as bank account access) power.

One big misconception is that the Power of Attorney is good and in effect after you die. That is simply not true. This document is valid only while you are alive. Once you die your Will comes into play and the Power of attorney document becomes void.

I hope this information has been helpful. As always if you have any suggestions, comments or concerns we welcome then.

As caregivers we should make sure those we care for have their paperwork in order and that we know where it is. Don't be caught unaware be prepared.

Until Next Time, Take care of yourself!

Ruth Anne