If You Can't Decide: Power of Attorney and Health Care Directives

The story: Who can speak for Theo?

Marcus waits at a hospital desk for news about Theo, Marcus’s brother, while a nurse, Nora, explains the two papers that name decision-makers.

1. Narrator: Marcus’s brother Theo was in a car crash. Theo is in the hospital and can’t talk for now.
2. Marcus: Theo’s rent is due, and the doctors keep asking who can make choices for Theo.
3. Narrator: Theo never signed a power of attorney or a health care directive. The family may need to go to court.
4. Nora: Two papers handle this ahead of time: one for money, and one for medical care.
5. Narrator: A durable financial power of attorney names someone to handle money. A health care directive names someone for medical choices.
6. Narrator: The directive can include a living will and a HIPAA release, so doctors can talk with the family.
7. Marcus: I’m signing mine this month. When Theo is better, I’ll help Theo do the same.

What you’ll learn

1. Two papers, two jobs

   One paper is for money: a durable financial power of attorney names an agent to pay bills and manage accounts. The other is for medical care: a health care directive names an agent for medical decisions and can include a living will.

2. What “durable” means

   A durable power of attorney keeps working if you can’t make decisions yourself. One that isn’t durable can stop at exactly the moment you’d need it most. That one word matters, so look for it on the form.

3. Choose people you trust, plus backups

   Pick agents who are trustworthy, organized and willing, and name a backup for each. Add a HIPAA release so doctors can talk with your family. Use your state’s forms, since rules vary, or ask an attorney.

4. Without these papers

   If you can’t decide and haven’t signed these papers, family may need a court process, often called guardianship or conservatorship. It can be slow, public and costly. Signing ahead keeps the choice of who decides with you.

Key words

durable power of attorney

a paper naming someone to handle your money if you can’t

health care proxy

the person you name to make medical decisions if you can’t

Also called: health care agent

living will

your written wishes for medical care if you can’t speak for yourself

HIPAA release

a form that lets doctors share your health information with people you name

Common questions

Can my agent do anything they want with my money?

No. Agents must act in your interest and keep your money separate from theirs. The fact card links to a federal guide for agents.

Do I need a lawyer?

Many states have free standard forms. An attorney helps with complex situations, like a family business or family disagreements.

Remember this

Name your decision-makers before you need them.

Try it: Make your two-papers checklist

1. Choose an agent and a backup for money decisions.
2. Choose an agent and a backup for medical decisions.
3. Find your state’s forms, or ask an attorney.
4. Tell your agents where the signed papers are kept.

The whole mission; no account or app needed. Print this page or copy the steps.

Live facts

Numbers that change over time, with when they were last checked and where they come from.

• Guides for people managing someone else’s money

  Source: ConsumerFinance.gov(opens in a new tab)

• Advance directives for health care

  Source: National Institute on Aging(opens in a new tab)

• State forms and rules vary: find free or low-cost legal help

  Source: USA.gov(opens in a new tab)