Estate planning in New York extends far beyond creating a simple Will, encompassing preparation for potential incapacity. Although a Will is a foundational document, numerous tools exist to ensure your wishes are honored after your passing. Designating individuals for key roles can further guarantee your estate is managed as you intend. Please continue reading as we explore the differences between a Healthcare Proxy and a Power of Attorney, as well as the importance of consulting a knowledgeable Rockland County Estate Planning Attorney to determine the best path forward.
What is the Difference Between a Healthcare Proxy and a Power of Attorney?
In New York, both a Power of Attorney (POA) and a Healthcare Proxy are legal documents that empower an individual to act on your behalf; however, they differ in the scope of authority granted.
A Healthcare Proxy designates an individual to make medical decisions for you if you become incapacitated. This type of advance directive takes effect when a physician determines you are unable to make decisions for yourself. The appointed advocate can then make choices regarding medical treatment per your wishes and instructions.
Conversely, a Power of Attorney authorizes an individual to manage your financial and legal affairs when you cannot do so yourself. This authority extends to handling bank accounts, paying bills, selling property to fund a Trust, making investments, and managing legal transactions. A POA generally becomes effective immediately upon signing or upon the occurrence of a specified event.
It’s important to note that both a Healthcare Proxy and a POA can be terminated if the party who created them revokes them or upon that person’s death. A healthcare proxy can also cease to be effective if the individual regains the capacity to make their own decisions.
Which One is Right for My Estate?
Generally, it’s advisable to appoint both a Healthcare Proxy and a POA as part of your estate plan. While these documents may seem alike, they fulfill distinct functions. This approach guarantees that all facets of your life are managed if you become incapacitated. It offers reassurance, knowing that separate trusted individuals are authorized to make financial and medical decisions on your behalf. Moreover, proactively addressing these matters can avert potential legal complexities and expensive court proceedings for your loved ones.
As you can see, these legal documents empower you to dictate your future, safeguard your assets, and ensure your well-being, even in unforeseen circumstances. At The Lauterbach Law Firm, we understand that planning for the future can be an overwhelming process. We are prepared to offer unwavering support and ensure your wishes are not only documented but meticulously honored. Connect with our firm today for more information.
