As your parents are getting older, you may realize that it is time to have some important conversations about estate planning. Specifically, you may be wondering if they need to use a medical power of attorney or a financial power of attorney.
Both of these documents function in similar ways, but they address different issues. If your parents set up a power of attorney, they can choose an agent. That agent then has the legal power to make decisions in the area specified in the document, whether that means accessing bank accounts, making financial decisions, talking to doctors and other hospital staff, or making critical medical decisions and end-of-life care decisions.
Avoiding disputes
On one hand, your parents may need a power of attorney just because it helps to make these decisions in advance, while they still have the testamentary capacity to do so. This way, there are not any questions about how their estate plan was written if they become incapacitated due to a medical condition, such as Alzheimer’s or dementia.
A power of attorney is not only helpful for your parents in establishing an agent to make these critical decisions, but also for other family members.
If one of your parents has a medical emergency, for instance, it can sometimes lead to disputes between siblings and family members regarding what type of healthcare they should receive or when to make critical decisions – like putting them on life support. If a power of attorney has been drafted in advance, it identifies who gets to make these decisions and can help to avoid these disputes.
Talking to your parents about estate planning can be a complex and emotional topic, but it may be helpful for them and your entire family. It is crucial that they know what legal steps to take and what options they have.
