This is a question that we constantly get when we are discussing Healthcare and Financial Powers of Attorney. The first shared statement is that “everything is in both our names”.
Although this statement may be true, really EVERYTHING is not in both your names. There are certain accounts, holdings and information that are in individual names such as medical records, treatment authorization, IRAs, Pensions, IRS, Social Security and other employer based benefits. The fact that a person is named beneficiary does not give them the right to gather information or access the account until your death, not during your lifetime.
That is why you “need that”!
A Health Care Power of Attorney gives the person you name as your agent the power to make health care decisions for you if you cannot make the decision for yourself. This power includes the power to make decisions about life sustaining treatment. Unless otherwise stated, your agent will have the same authority to make decisions about your health care as you would have.
A Durable Power of Attorney is a legal document where one person (the principal) authorizes another (the agent) to act on the principal’s behalf regarding financial decisions. It allows a person to plan for care and control of property in the event he or she becomes incapacitated.
This document allows the agent to monitor bank accounts, write, sign and endorse checks in your name, take care of governmental benefits, provide for payment of your monthly bills, and most other financial requirements. You are able to limit the agent’s power to any specific action you choose.
It is vitally important that you have these documents should you ever be unable to manage your healthcare or financial decisions.
Without these documents the Probate Court will decide who will manage your Healthcare and Financial Decisions.