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Power of Attorney vs. Health Care Proxy: What’s the Difference?

When thinking about your future, it’s natural to want reassurance that your wishes will be respected, both financially and medically. The Power of Attorney and Health Care Proxy are two ways you can make sure that the people you trust can step in and make decisions on your behalf if needed. Although these documents may seem similar, each one is designed to address different aspects of your life. By understanding how they work, you can feel more secure knowing your needs will be honored.

What Is a Power of Attorney?

A Power of Attorney (POA) is a legal document that grants someone you trust the authority to make decisions on your behalf. This person, known as your agent or attorney-in-fact, can step in to handle various matters when you are unable to do so yourself. A POA can cover a broad range of responsibilities, including managing your finances, signing documents, paying bills, and even making legal decisions.

There are different types of POAs to consider. A Durable Power of Attorney remains in effect even if you become incapacitated, ensuring that your agent can continue to manage your affairs. A General Power of Attorney provides broad powers, while a Limited Power of Attorney restricts your agent’s authority to specific tasks or a certain time period.

A POA is essential for ensuring that your financial and legal matters are handled according to your wishes, especially in unforeseen circumstances.

What Is a Health Care Proxy?

A Health Care Proxy is a legal document that allows you to appoint someone you trust to make medical decisions on your behalf if you are unable to do so. This person, known as your health care agent, steps in when you cannot communicate your wishes due to illness or incapacity. The Health Care Proxy gives your agent the authority to make decisions about your medical treatment, including surgeries, medications, and end-of-life care.

Unlike a Power of Attorney, which handles financial and legal matters, a Health Care Proxy is specifically focused on your healthcare needs. It becomes effective only when your doctor determines that you cannot make or communicate your own healthcare decisions. By designating a Health Care Proxy, you ensure that your medical preferences are honored, even if you are not able to express them yourself. 

Key Differences Between Power of Attorney and Health Care Proxy

While both a Power of Attorney and a Health Care Proxy are crucial for a complete estate plan, they serve different functions and apply to different aspects of your life. Here’s a breakdown of their key differences:

  • Focus Areas: A POA manages financial and legal matters, covering tasks such as paying bills, managing investments, and signing contracts. A Health Care Proxy focuses exclusively on medical decisions. 
  • Activation: A POA can be activated immediately or upon your incapacity, depending on how it’s set up. It typically remains in effect until it’s revoked or you pass away. A Health Care Proxy only becomes active when a doctor determines you can’t make your own healthcare decisions, and it remains in effect until you regain the ability to decide or until you pass away.
  • Scope of Authority: A POA grants broad or limited authority over your financial and legal matters. A Health Care Proxy grants specific authority over healthcare decisions to ensure your medical wishes are respected.

By having both a POA and a Health Care Proxy, you can ensure that all aspects of your life are handled according to your preferences, regardless of the circumstances.

Why You Need Both Documents

Having both a Power of Attorney and a Health Care Proxy ensures that all aspects of your life are protected and managed according to your wishes. A POA covers your financial and legal affairs, while a Health Care Proxy empowers someone you trust to make medical decisions on your behalf. Without these documents, your loved ones may face legal hurdles or be unsure of how to proceed. Together, these tools provide comprehensive coverage, assuring you that your affairs are in capable hands.

Contact Our Experienced Southeastern Massachusetts Estate Planning Attorneys

At Surprenant & Beneski, we understand the importance of securing your future. Our experienced team can help you create both a Power of Attorney and a Health Care Proxy, ensuring your financial and medical wishes are honored. Contact us today to schedule a consultation and take the first step in protecting your peace of mind.