In the realm of estate planning and healthcare decision-making, two important documents are the Power of Attorney (POA) and the Advance Healthcare Directive (AHCD). While both serve important purposes in ensuring your wishes are carried out during times of incapacity, they have different roles and functions. Today we will explore the differences between these two documents to help you better understand their importance and how they complement each other.

Power of Attorney (POA)

A power of attorney is a legal document that grants someone else the authority to act on your behalf in financial and legal matters. This person, known as your agent or attorney-in-fact, can make decisions and take actions such as managing bank accounts, paying bills, buying or selling property, and handling other financial transactions. Your power of attorney can be made effective upon certain conditions, most commonly, upon your incapacity or it can be made effective immediately. You are also free to grant your agent powers broadly or specifically.

Advance Healthcare Directive (AHCD)

An advance healthcare directive, also known as a medical power of attorney, is a legal document that allows you to specify your healthcare preferences and appoint someone to make medical decisions on your behalf if you become unable to communicate or make decisions for yourself. This person that you appoint is known as your agent. While an Advance Healthcare Directive, like a Power of Attorney can be made to take effect upon incapacity or immediately but the powers being granted to your agent are less broad. Essentially, most of the decisions you are making but the document gives your agent the power to carry out those wishes.

Conclusion

In summary, while a power of attorney and an advance healthcare directive serve different purposes, they are both essential components of estate planning. Remember, estate planning is not just about securing your assets; it's also about safeguarding your well-being and ensuring that your wishes are honored during life's unexpected twists and turns. Consulting with an experienced attorney can help you draft these documents effectively and tailor them to your specific needs and circumstances. To get started, contact us now!