Why a POA Matters – Part 1

Whenever we get a call from a family in the midst of a medical crisis, one of the first questions we ask is whether there is a power of attorney.  If so, we want to review that document.   I have written about this very basic but often overlooked document in the past but two recent cases in our office once again highlight its importance.

The power of attorney is a document by which the principal (the person executing the document) designates an agent to act on his or her behalf in certain situations.  These situations can be in a medical setting (health care power of attorney also referred to as a health care directive).  A power of attorney can also give the agent the power to conduct financial transaction on behalf of the principal (financial power of attorney).  In our office we typically prepare 2 separate documents – one covering medical decisions and one covering financial decisions.

Without a power of attorney no one has the ability to make decisions and carry out transactions on behalf of the principal.  In a medical emergency doctors and hospital staff will often take direction from a spouse but eventually the lack of a health care directive will present a problem.  If the medical crisis results in the need for long term care, payment issues quickly arise.  Without a power of attorney access to the financial accounts of the patient becomes impossible.

Even if a power of attorney exists, it may not be a “good one”.  I’ll explain what I mean next week.