Estate planning involves preparing for potential incapacity. You may believe a Will is your sole option, yet various tools exist to guarantee your wishes are upheld. While a Will is a crucial foundational document, designated for individuals for key roelscan further ensure your estate is managed as you intend. It’s common to be unclear about the distinctions between a Power of Attorney and a Healthcare Proxy. If this applies to you, continue reading to understand their differences and the importance of consulting a dedicated Washtenaw County Estate Planning Attorney to discuss your options.
What’s the Difference Between a Healthcare Proxy and a Power of Attorney?
First and foremost, it’s crucial to understand that in Michigan, a Healthcare Proxy is formally known as Patient Advocate Designation for healthcare decisions. A Healthcare Proxy allows you to appoint a trusted individual to make medical decisions on your behalf when you are unable to do so yourself. This advance directive is typically activated when a doctor determines you are incapacitated. In this case, the patient advocate is afforded the right to make decisions about medical treatments, including end-of-life care, based on your instructions.
Alternatively, a Power of Attorney is an individual authorized to manage your finances and legal affairs when you are unable to do so. This includes handling bank accounts, paying bills, making investments, selling property, or taking care of legal transactions. A Power of Attorney generally takes effect immediately upon signing or upon the occurrence of a specific event, like the physician’s declaration of incapacity.
You should note that both a healthcare proxy and a power of attorney can end when the individual who created them revokes them or upon the person’s death. A healthcare proxy can also end when the individual regains the ability to make their own medical decisions.
Which Legal Document Do I Need for My Estate?
A Healthcare Proxy and Power of Attorney, while seemingly similar, serve distinct roles. It’s generally advisable to appoint both as part of your estate plan in Michigan. This approach ensures all aspects of your life are covered should you become incapacitated. It provides peace of mind, knowing that one trusted individual will handle financial decisions, while another is empowered to make medical choices on your behalf. Furthermore, addressing these matters proactively can prevent potential legal complications and costly court proceedings for your family.
At Collis, Griffor, & Hendra, we understand the complexities of estate planning and are dedicated to guiding you through these challenging times. Contact our firm today to learn how we can assist you in honoring your wishes.