Like lots of legal terminology, these terms can be hard to make sense of and clear as mud. Terms like power of attorney, healthcare power of attorney, advance directive and living will are too often tossed around casually and used inaccurately.

Here are some basic definitions to clarify the muddy waters.

A power of attorney (POA) for legal and financial matters allows a person you designate to step into your shoes if you’re unable or just don’t want to do deal with financial decisions.

This includes a variety of things including bank accounts, investments, real estate, taxes, insurance, social security, medical bills, credit cards, utility bills and more, as well as legal matters like lawsuits and estate planning.

A legal and financial power of attorney can be durable, as the power of the attorney-in-fact lasts until it is revoked by the principal or the principal dies. It also can be limited for a specified period of time and/or for defined purpose such as signing papers to close on a home purchase while one of the owners-to-be is traveling abroad.

In Oregon, you have the power to appoint a representative to make healthcare decisions for you if you can’t, and also the power to provide instructions in advance to doctors about the type of treatment you would or would not want. In most situations, they can be combined into one document called an Advance Directive (AD) 

In some states, portions of the “Advance Directive” are referred to as a living will.

What’s most important to understand is this:  As critical as wills and trusts are to the well-being of your family after your death, the POA and AD are just as critical to you during your life.

The bottom line:  An estate plan is incomplete without them and puts you at avoidable and preventable risk.

To learn more, visit us online, reach out with an email, or fill out our online questionnaire.

Thanks for reading and all the best to you and yours.

Aaron