Health Care Proxy and Power of Attorney: The Documents Everyone Needs

When people think about estate planning, they think about a will, which is about what happens after death. But two of the most important documents in any plan are about what happens while you are still alive and unable to speak for yourself. They are the health care proxy and the durable power of attorney. Every adult should have both.

The health care proxy

A health care proxy is a short document that names someone you trust, your "agent," to make medical decisions for you if a doctor determines you cannot make them yourself.

Without one, if you are incapacitated by an accident or illness, your family may have no clear authority to direct your care, and may have to ask a court to appoint a guardian. That is slow, public, and expensive at exactly the moment your family is least able to manage it. A proxy avoids that. You can also talk with your agent in advance about your wishes, so they are not guessing under pressure.

The durable power of attorney

A durable power of attorney names someone to handle your financial and legal affairs, paying bills, managing accounts, dealing with insurance, if you become unable to do so. "Durable" means it stays in effect even after you lose capacity, which is the whole point.

Without one, the same problem arises: your family may have to petition a court to be appointed conservator before they can pay your mortgage or manage your accounts. A durable power of attorney lets someone you chose, on terms you set, step in without that delay.

Why these matter for everyone

These documents are not about wealth or age. A young, healthy adult is exactly the person an accident can sideline without warning. The cost of preparing a proxy and a power of attorney is small, and they are simple to put in place. The cost of not having them falls on your family, in court, at the worst possible time.

Keep them current and accessible

Name your agents thoughtfully, and name an alternate in case your first choice is unavailable. Tell the people you have named, and make sure the documents can be found when needed. Review them after major life changes. As with a will, a document no one can locate, or that no longer reflects your wishes, does not do its job.