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Tag: Power of attorney

  • Do you have a durable power of attorney?

    Do you have a durable power of attorney?

    Life has its curve balls, as we all know. And, we and the people we love are all better off if we’re prepared for them. That’s why everyone should have a durable power of attorney.

    A durable power of attorney is a legal document through which you name someone to help with your financial affairs at any time that you cannot handle them yourself. The person you name should be someone you trust with your finances, someone who could make decisions about your finances if the need arises. The person who has your durable power of attorney also could be your health care proxy or health care buddy.

    If you don’t already have a durable power of attorney, you should be able to download a free durable power of attorney form for your state online.

    Why should you give someone a durable power of attorney? Giving someone you trust a durable power of attorney should give you peace of mind that your affairs will be taken care as you would like, if you cannot take care of them.Without a durable power of attorney, it’s not clear whether your bills and other financial needs will be taken care of. Whoever stepped up to manage your affairs would have to go through an expensive and lengthy court proceeding to get approval to manage your affairs. Unless you choose the person who will have your durable power of attorney, a judge might appoint someone you do not trust to handle your affairs.

    How long does a durable power of attorney last? Your durable power of attorney lasts until you die or you change your durable power of attorney.

    What is the difference between a durable power of attorney and a power of attorney? If you simply give someone a power of attorney, then the person you designate only has authority over whatever financial matters you specify until you become mentally incompetent. But, if you choose, you can make the power of attorney document a durable power of attorney. You need only include language in the power of attorney that specifies that the person you designate has authority if you become mentally incompetent. Unless you make the power of attorney a durable power of attorney, the person you designate cannot handle your financial affairs after you become mentally incompetent.

    Who should have a copy of your durable power of attorney? You should give a copy of the durable power of attorney to all financial institutions at which you have accounts. You should also let the person to whom you give durable power of attorney know that the person has durable power of attorney. You can give that person a copy of the document or let the person know where to find it in your home.

    If you give someone a durable power of attorney, will that person be able to take money from your bank accounts? Yes. The person you name as having durable power of attorney, your financial agent, will be able to take care of your financial affairs using your bank accounts if you give them that authority. But, this agent does not own the money in your accounts and may not take money from your accounts for himself or herself.

    What should you discuss with the person to whom you give durable power of attorney?  You should let the person know about all institutions with which you have financial arrangements, including your banks, credit card companies, financial advisors and insurance companies. You should let the banks, credit card companies and financial advisors know to whom you have given durable power of attorney.

    Can you change or cancel the durable power of attorney? Yes. You can cancel or change your durable power of attorney at any time by destroying it and notifying the financial institutions at which you have accounts that you have destroyed it or changed it.

    Here’s more from Just Care:

  • Plan ahead: Who will pay your bills if you cannot

    Plan ahead: Who will pay your bills if you cannot

    If you’re like most people, you are going through life doing your best to manage your bills, without thinking about who will pay them on your behalf if you are not able to. But, the last thing you want on top of the medical bills you’ll accrue if you are hospitalized or need rehab care is a collection agency coming after you. So, it’s wise to plan ahead, get your affairs in order, and appoint someone you trust to pay those bills through a durable power of attorney.

    A durable power of attorney is a legal document that allows you to name someone to help with your financial affairs whenever you would like, including if you become unable to handle them yourself. The person you name should be someone you trust with your finances, someone who could make decisions about your finances if need be. That person also could be your health care proxy or health care buddy.

    Why should you give someone a durable power of attorney? Giving someone you trust a durable power of attorney should give you peace of mind that your affairs will be taken care as you would like, if you cannot take care of them. Without a durable power of attorney, the person you would want to handle your financial affairs would have to go through an expensive and lengthy court proceeding to make these decisions. Moreover, without the durable power of attorney, a judge might appoint someone you do not trust to handle your affairs.

    How long does a durable power of attorney last? The durable power of attorney lasts until you die or until you change it.

    What is the difference between a durable power of attorney and a power of attorney? If you give someone a power of attorney rather than a durable power of attorney, then the person you designate only has authority over whatever financial matters you specify until you become mentally incompetent. But, if you choose, you can make the power of attorney document a durable power of attorney. You need only include language in the power of attorney that specifies that the person you designate has authority if you become mentally incompetent. Unless you make the power of attorney a durable power of attorney, the person you designate cannot handle your financial affairs if you become mentally incompetent.

    Who should have a copy of your durable power of attorney? You should give a copy of the durable power of attorney to all financial institutions at which you have accounts. And, you should give a copy to the person you name to have your durable power of attorney or, at the very least, let that person know he or she has that authority and where to find the document if needed.

    If I give someone a durable power of attorney, will that person be able to take money from my bank accounts? Yes. The person you name as having durable power of attorney, your financial agent, will be able to take care of your financial affairs using your bank accounts if you give the person that authority. But, this agent does not own the money in your accounts and may not take money from your accounts for himself or herself.

    What should I discuss with the person I name as having durable power of attorney?  You should let your agent know about all institutions with which you have financial arrangements, including your banks, credit card companies, financial advisors and insurance companies.

    Can I cancel my durable power of attorney? You can cancel or change your durable power of attorney at any time by destroying it and notifying the financial institutions at which you have accounts that you have destroyed it or changed it.

    Is there anything more I need to do? Yes! You should be sure to let the person to whom you give your durable power of attorney know and you might want to let other people you trust know that this person has durable power of attorney. You also need to let your bank know about your durable power of attorney. You also need to pull together a list of the bills you pay, your checking account information, and other information needed to make sure your bills are paid and have that available to the person to whom you give your durable power of attorney. Click here for a checklist.

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  • When you cannot act for yourself, have you made your wishes clear?

    When you cannot act for yourself, have you made your wishes clear?

    Planning ahead for the unexpected should include having a written will, living will, durable power of attorney and a health care proxy. All of these documents will help ensure that your wishes are honored when you cannot act for yourself.

    More than one in three people over 60 do not have a will. If you are among them, you should consider engaging an attorney to prepare one for you or writing one on your own. There are many online tools that can help, if you decide to prepare your will without the aid of an attorney. You can find a Just Care post on how to make your own will here. If you already have a will, you should check it periodically to make sure that it’s up to date.

    If you have a will, you will need an executor. The executor is the person who oversees the execution of your will,  taking care of your property, paying any debts you may have, and distributing your assets as you have detailed in your will. The executor is usually a close family member or friend.

    You also want to identify someone to whom you give durable power of attorney and put that in writing. The durable power of attorney gives a person you trust control over your finances and anything else you’d like–to the extent you desire–if you are not able to act on your own behalf. So, for example, if you are unable to pay your bills, the person to whom you give durable power of attorney would be able to do so on your behalf.

    Your health care proxy and living will collectively are the two parts of what is called your advance directive. Your health care proxy is someone you trust to act on your behalf and express your wishes in a medical emergency, if you cannot speak for yourself. For example, do you want to be kept alive on a ventilator or not if your brain is no longer functioning? You can download a health care proxy form online here. A living will states your wishes about your health care if you cannot speak for yourself,

    Keep your will, health care proxy, living will and durable power of attorney documents in a safe place. And, make sure that someone you trust knows where you keep them. You should also make copies to share with your loved ones.

    It’s generally advisable to talk to the people you love and trust about your wishes. You might want to tell them who you’ve named as your executor and health care proxy, as well as who has durable power of attorney. They can be the same or different people.

    Here’s more from Just Care:

  • What’s a durable power of attorney?

    What’s a durable power of attorney?

    A durable power of attorney is a legal document that allows you to name someone to help with your financial affairs whenever you would like and if you become unable to handle them yourself. The person you name should be someone you trust with your finances, someone who could make decisions about your finances if need be. That person also could be your health care proxy or health care buddy.

    Why should you give someone a durable power of attorney? First and foremost, giving someone you trust a durable power of attorney should give you peace of mind that your affairs will be taken care as you would like, if you cannot take care of them. Otherwise, the person you would want to have the durable power of attorney would have to go through an expensive and lengthy court proceeding to make these decisions. Moreover, without the durable power of attorney, a judge might appoint someone you do not trust to handle your affairs. The durable power of attorney lasts until you die.

    What is the difference between a durable power of attorney and a power of attorney? If you simply give someone a power of attorney, then the person you designate only has authority over whatever financial matters you specify until you become mentally incompetent. But, if you choose, you can make the power of attorney document a durable power of attorney. You need only include language in the power of attorney that specifies that the person you designate has authority if you become mentally incompetent. Unless you make the power of attorney a durable power of attorney, the person you designate cannot handle your financial affairs after you become mentally incompetent.

    Who should have a copy of your durable power of attorney? You should give a copy of the durable power of attorney to all financial institutions at which you have accounts.

    If I give someone a durable power of attorney, will that person be able to take money from my bank accounts? Yes. The person you name as having durable power of attorney, your financial agent, will be able to take care of your financial affairs using your bank accounts if you give them that authority. But, this agent does not own the money in your accounts and may not take money from your accounts for himself or herself.

    What should I discuss with the person I name as having durable power of attorney?  You should let your agent know about all institutions with which you have financial arrangements, including your banks, credit card companies, financial advisors and insurance companies.

    Can I change or cancel the durable power of attorney? Yes. You can cancel or change your durable power of attorney at any time by destroying it and notifying the financial institutions at which you have accounts that you have destroyed it or changed it.

    [Note: This post was originally published on March 28, 2018.]

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  • HIPAA and why you need a health care proxy

    HIPAA and why you need a health care proxy

    In 1996, more than 25 years ago, Congress enacted the Health Insurance Portability and Accountability Act, which aims to safeguard people’s private health care information. Keeping people’s health care information private is important. But, HIPAA sometimes also keeps doctors and hospitals from sharing key information with you about the people you love. HIPAA provides all the more reason everyone should have a health care proxy–someone you designate, whom you trust, who can speak for you and ensure your wishes are honored, when you cannot speak for yourself.

    Without a health care proxy (sometimes called a “medical power of attorney” or an “advance directive,”) your family has only limited rights to make health care decisions on your behalf. And, at times, doctors and other care providers are not aware of these rights or misunderstand them, preventing your family from making needed decisions. Stories abound of family members not able to get information from the doctor about a loved one’s condition because of HIPAA. HIPAA does not keep this information from being shared in many cases, but doctors and hospitals often misapply it.

    For your own peace of mind, make sure you and the people you love have signed health care proxies. They are state-specific. You can download them free here. With a signed health care proxy, you know that someone you trust can speak on your behalf if you’re hospitalized and unable to speak for yourself. Without a health care proxy, that person may not be able to help you at all.

    Ideally, you should give a copy of your health care proxy to the person you have designated as your proxy as well as to your doctor. If you don’t share it with the person, make sure your health care proxy knows where to locate it in your home. It’s of no use if your proxy does not have a record of it. For more reasons why health care proxies are so important, click here.

    What does HIPAA allow? HIPAA does allow doctors and other care providers to disclose a person’s health information to family members or close friends when in their professional judgment it’s in the best interest of the patient. And HIPAA only applies to care providers, health insurers and health data collectors, not clubs or churches or other organizations. So an assisted living institution or nursing home can let people know about the condition of their loved one.

    Updated from September 23, 2015 and December 31, 2018.

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  • Roundup: Planning for life’s curve balls

    Roundup: Planning for life’s curve balls

    Life happens. Tomorrow, who knows what will be. At some point down the road, we are all likely to need assistance caring for ourselves. It’s wise to be prepared for life’s curve balls. Here’s a roundup of things to think about and some of the ways you might plan ahead.

    Paperwork

    Medical help

    Care

    End-0f-life choices, funerals and stuff:

  • Coronavirus: Planning ahead for a medical emergency

    Coronavirus: Planning ahead for a medical emergency

    The novel coronavirus pandemic led many more Americans to buy life insurance in 2020 than in the past. Even younger adults have a fear that they could die at any time. You might not need life insurance, but if you have not yet done so, it might be time to plan ahead for a medical emergency: designate a health care proxy, prepare or revisit your will, do some estate planning and otherwise put your affairs in order. Here’s what you might want to think about:

    • A living will and health care proxy: These “advance directives” let your loved ones know your health care wishes if you are unable to express them yourself. The living will states your wishes about your health care if you cannot speak for yourself and your health care proxy is someone you name to act on your behalf regarding your medical treatment if you are unable to speak for yourself. Completing these advance directives and sharing them with the people you love helps bring your family together and provides comfort to them that they are following your wishes should they need to act on your behalf. A signed advance directive for your state is a legal document that doctors and hospitals must honor. The advance directive also ensures that the people you love can make decisions on your behalf.  Without a health care proxy, if you became unable to care for yourself, it is possible that the state would appoint a legal guardian, unknown to you, to act on your behalf. To get a free advance directive for your state, click here.
    • A durable power of attorney: A durable power of attorney is a legal document that allows you to name someone to help with your financial affairs whenever you would like and if you become unable to handle them yourself. The person you name should be someone you trust with your finances, someone who could make decisions about your finances if need be. That person also could be your health care proxy. Completing a durable power of attorney and sharing it with the person whom you name to handle your affairs should provide comfort to the people you love. You should also share it with all financial institutions with which you have accounts.
    • Long-term care insurance: If you don’t have it, no worries. It’s likely not worth having. The cost of the policy is generally very high relative to the benefits. For most people with means, it’s better to put aside money to pay for long-term services and supports, such as home care and nursing home care.
    • Your stuff: You might want to set aside time to go through your possessions with your loved ones. Yes, it can be stressful, conjuring up all kinds of feelings and emotions; your children may not want the items you hoped they would take, even if you give these items special meaning and importance. And, it can cause conflicts among siblings if you want one child to have something another child values. But, going through your possessions with your loved ones also can be comforting. Your family can feel good that there’s a plan in place for your things and that you support it.
    • In case of emergency: Create a file with:
      • A list of your family members, friends and neighbors and their contact information
      • A list of important medical, business, financial and legal contacts, including your doctors, bankers, lawyers, as well as the names of your health and life insurance companies and their contact informaiton
      • Your will, your health care proxy, living will, durable power of attorney and other legal documents
      • Your most recent tax return
      • Your car title and deed to you house, if you own it
      • Copies of your Medicare and Social Security cards, as well as other insurance cards, including supplemental coverage and life insurance, as well as policy numbers and contact information
      • Your medical records and a list of all your medications
      • Mortgage or rent information, as well as utilities information
      • Digital account information, including passwords
      • Information with provisions you have made for your pets, your funeral and other matters of importance to you

    Here’s more from Just Care:

  • How to make your own will

    How to make your own will

    If you do not already have a will or would like to revise your will, you should consider making your own will. It’s actually pretty easy to do. Paul Sullivan reports for The New York Times on tools available on the web to make your own will.

    Some online tools for creating a will are simple to use. It can take less than an hour. The companies offering online tools are for-profit, but they provide services for free or at little cost. You can check out FreeWill, Rocket Lawyer and LegalZoom.

    If you have family, friends or charities to whom you would like to leave some or all of your property, you should have a will. That said, almost six in ten Americans die without wills, including a lot of celebrities. Aretha Franklin, for example, did not have a will. So, do not think of yourself as an outlier if you do not have one.

    FreeWill allows you to create a will and leave money to charity at no cost. You can change your mind about which charities to leave money to, as many people do, over time.

    Rocket Lawyer costs $40 a month and will link you with a lawyer. You can get help with legal documents online.You are billed separately for time you spend speaking with a lawyer.

    LegalZoom gives you access to a lawyer and help with your power of attorney and health care proxy in addition to the will. The cost for a year is between $149 and $349. The cost includes the lawyer’s time.

    Online tools to help you create a will may not serve you as a well as a lawyer. If you can afford a lawyer whom you trust, you may want to invest in one, especially if you have a lot of assets. That way, you will be sure you dot all your i’s and cross your t’s when you create your will.

    You should have a durable power of attorney and a health care proxy document in addition to a will. The durable power of attorney gives someone you trust control over your finances–to the extent you desire–if you are not able to act on your own behalf. The health care proxy document identifies someone you trust to act on your behalf and express your wishes in a medical crisis, if you cannot speak for yourself.

    Here’s more from Just Care:

  • Five steps to get your affairs in order in case of emergency

    Five steps to get your affairs in order in case of emergency

    Whatever stage of life you’re in, it is daunting to think about getting your affairs in order. But, it’s important to do so, especially in later life. You may be healthy today, but life happens. Tomorrow you may not be able to speak or act for yourself. Who will care for you? Who will be able to speak for you? Who will know your desires? Who will know how to pay your bills and meet your health and financial needs? Here are five steps to help get your affairs in order:

    1. Create a file with:
      • A list of your family members, friends and neighbors and their contact information
      • A list of important medical, business, financial and legal contacts, including your doctors, bankers, lawyers, as well as the names of your health and life insurance companies and their contact informaiton
      • Your will, your health care proxy, living will, durable power of attorney and other legal documents
      • Your most recent tax return
      • Your car title and deed to you house, if you own it
      • Copies of your Medicare and Social Security cards, as well as other insurance cards, including supplemental coverage and life insurance, as well as policy numbers and contact information
      • Your medical records and a list of all your medications
      • Mortgage or rent information, as well as utilities information
      • Digital account information, including passwords
      • Information with provisions you have made for your pets, your funeral and other matters of importance to you
    2. Identify a family member or friend you trust, and let that person know where you keep the file. Also, consider making that person or another trusted person your legal health care proxy–the person who is allowed to speak on your behalf and knows your wishes if you are unable to speak for yourself. Make sure your health care proxy has a copy of the signed health care proxy or at least knows where to locate it in your home.  Your doctor should have a copy as well. Your proxy should also have a list of all your medications, both prescriptions and over-the-counter. (This is also important if you need hospital services.)
    3. Identify a person you trust to act on your behalf when it comes to business, legal and financial matters, if necessary. Give that person a signed durable power of attorney. A power of attorney will let the person act on your behalf while you are able to make your own decisions. A durable power of attorney will let the person act on your behalf even when you are unable to make your own decisions. The person who gets the durable power of attorney can be your health care proxy or someone else. If you’d rather not give the person a durable power of attorney immediately, you can keep it in your possession and let the person know where you keep it in case someone needs to act on your behalf.
    4. Consider putting a child or someone else you trust on your checking account, so that person can write checks on your behalf. You should also consider doing the same with your safe deposit box.
    5. Regardless of whether you give someone power of attorney, let your doctors, Medicare, your bank and credit card company know that you give them consent to speak to your child or other trusted caregiver.

    For more advice, check out this page from the National Institute on Aging.

    Here’s more from Just Care:

  • How to avoid being assigned a legal guardian

    How to avoid being assigned a legal guardian

    In 2017, Rachel Aviv wrote a story for the New Yorker on how an older couple in Nevada ended up with a legal guardian against their will. The story is chilling and worth reading. It helps to reinforce the point that every adult should identify an agent, someone they trust, to have durable power of attorney over their financial affairs, along with a health care proxy, someone they trust to ensure their health care wishes are honored.

    In Aviv’s story, the couple were managing fairly well on their own, with the help of their daughter who visited them most afternoons. But, a seemingly unscrupulous certified legal guardian in Nevada was able to go to their doctor and secure the documentation she needed to get a judge to determine that the couple was not able to make responsible decisions about their care or property and appoint her as their legal guardian. With that appointment, the guardian went to the couple’s home and, against their will, moved them out and took over their finances.

    Their daughter was shocked not to find them at home later that day and spent almost two years securing their freedom from the legal guardian. By that point though, the guardian had upended their lives and spent their life savings. If the older couple had given their daughter durable power of attorney and named her as their health care proxy, this would not have happened.

    Legal guardians can gain control over people’s finances and health care. And, the guardians can charge for every service they deliver. There are 1.3 million people in the US who have been assigned legal guardians today. When they do their job appropriately, they can provide a valuable service. But, some of them behave unscrupulously, like the guardian in Aviv’s story.

    John Oliver tells a story about guardianship in the US and ends his tale with a group of older celebs explaining why we all need health care proxies and durable powers of attorney. It is well worth watching, in whole or you can skip to 12:50.

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