When we think about estate planning, our minds often go straight to wills and trusts—but powers of attorney are just as vital. These legal documents help ensure that if something unexpected happens and we become unable to make decisions for ourselves, a trusted person can step in to manage important aspects of our lives. From paying bills to making medical choices, powers of attorney provide protection, flexibility, and clarity during times of uncertainty. Creating these documents now can save our families from future stress and confusion.

The Difference Between Medical and Financial Powers of Attorney

There are two primary types of powers of attorney, and each serves a distinct role:

1. Medical Power of Attorney (Health Care Proxy)
   This document allows us to name someone—called a health care agent or proxy—to make medical decisions on our behalf if we’re ever unable to do so. This includes decisions about treatments, surgeries, medications, and end-of-life care. It’s a key part of any comprehensive health care directive.
2. Financial Power of Attorney
   This document authorizes a chosen agent to handle financial matters such as paying bills, managing investments, selling property, or accessing bank accounts. It can be broad or limited in scope, and it can take effect immediately or only upon incapacity.

Having both types in place ensures that all aspects of our well-being—physical and financial—are covered should we need support.

Choosing a Trustworthy and Capable Agent

Selecting the right person to act as your agent under a power of attorney is one of the most important estate planning decisions we can make. This individual will be handling personal, sensitive, and often complex matters during a vulnerable time.

Here are a few key qualities to look for:

• Trustworthiness: Your agent should be someone you believe will act in your best interests and follow your instructions.
  
  
• Financial or Medical Competence: Depending on the type of power of attorney, choose someone who understands finances or health care decisions—or at least someone who knows when to ask for expert guidance.
  
  
• Proximity: Having someone who lives nearby can be helpful in emergencies or for tasks that require in-person attention.
  
  
• Reliability: Your agent should be responsible, communicative, and able to manage potentially stressful or urgent situations.

It’s also a good idea to name a backup agent in case your primary choice is unable or unwilling to serve when needed.

How Powers of Attorney Function During Incapacity

One of the most critical times a power of attorney is needed is when we’re no longer able to manage our affairs due to illness, injury, or cognitive decline. In these situations, time is often of the essence. With a valid power of attorney already in place, our chosen agent can step in immediately—avoiding court delays and the need for a guardianship proceeding.

Depending on how the document is structured, powers of attorney can be "durable" (remaining in effect during incapacity) or "springing" (only becoming effective upon a doctor’s certification of incapacity). A well-drafted durable power of attorney ensures that someone we trust is empowered to act swiftly and confidently if the unexpected occurs.

When and How to Update Your Documents

Powers of attorney are not “set-it-and-forget-it” documents. Just like other estate planning tools, they need to be reviewed and updated as our lives and relationships change.

You should consider updating your powers of attorney if:

• Your named agent is no longer available or the best choice
  
  
• You've moved to another state (as laws can vary)
  
  
• You've experienced a major life event like divorce, marriage, or the birth of a child
  
  
• It’s been more than 3–5 years since the document was signed

To update your documents, we recommend working with an estate planning attorney to revoke the old powers and properly execute new ones. This ensures that financial institutions, medical providers, and family members have clear, current instructions.

The Peace of Mind Strong Planning Brings to Families

Creating powers of attorney is about more than just legal protection—it’s about reducing uncertainty and stress for those we love. When we proactively assign decision-making authority and communicate our wishes, we relieve our families from having to guess or argue during a crisis.

Well-prepared powers of attorney:

• Provide legal clarity in high-stress moments
  
  
• Minimize conflict and confusion among family members
  
  
• Prevent delays in accessing bank accounts or authorizing treatment
  
  
• Offer dignity and control in the face of life’s unpredictable challenges

By taking this step, we’re giving a valuable gift to our families: peace of mind and the ability to focus on care rather than red tape.

Plan Ahead with Trusted Legal Guidance

Powers of attorney are a vital part of any strong estate plan, and ensuring they’re thoughtfully drafted and legally sound can make all the difference when the time comes. At Donohue, O’Connell & Riley, we guide individuals and families through every aspect of the estate planning process—including creating and updating powers of attorney—to protect what matters most.

Whether you’re starting from scratch or reviewing existing documents, we’re here to help you plan with confidence.
Contact us today at docrlaw.com to schedule a consultation and take the next step in securing your future.