Things keep working the way you always think they will–until they don’t. This can be especially disorienting in terms of your health, where the lack of a backup plan can have swift financial and logistical consequences. For these reasons, it’s best that you draft proper estate planning documents while you’re still in possession of your physical and mental faculties; these arrangements can save both you and your loved one’s unnecessary heartache in the event of an accident.
If you’re thinking about drafting these documents but aren’t sure where to start, know that you’re not alone. Trying to make sense of these laws and their different limitations can be exhausting for the uninitiated. Fortunately, Barlow Anderson’s team of estate planning attorneys can guide you through the process with their combined experience and legal know-how. If you’re curious about how we can help you in particular, give us a call at 907-375-0750 today.
Durable Power of Attorney vs. Advance Healthcare Directive
It’s important to understand the distinction between two critical estate planning documents:
Durable Power of Attorney (DPOA): In Alaska, a durable power of attorney allows you to appoint someone (called an “agent” or “attorney-in-fact”) to manage your financial and legal affairs if you become incapacitated. This document primarily deals with financial matters such as:
- Managing your bank accounts and investments
- Paying your bills and taxes
- Buying, selling, or managing your property
- Handling insurance and government benefits
A DPOA remains in effect even if you become incapacitated (hence “durable”), but it does not typically cover healthcare decisions.
Advance Healthcare Directive: This separate document specifically addresses your healthcare wishes and allows you to:
- Appoint a healthcare agent (sometimes called a healthcare proxy) who can make medical decisions on your behalf if you cannot communicate
- Provide specific instructions about your medical care preferences, including life-sustaining treatments
- Express your wishes regarding end-of-life care, including the use or removal of life support
The healthcare agent appointed in your advance directive is the person legally authorized to make decisions about your medical treatment, including consenting to or refusing certain procedures or medications, and in some cases, making end-of-life decisions according to your documented wishes.
When These Documents Take Effect
Both documents only take effect when you lack the capacity to make your own decisions. For healthcare matters, this generally means that a doctor has determined you cannot understand the nature and consequences of your healthcare choices or cannot communicate your wishes.
Revocation Rights
Both a durable power of attorney and an advanced healthcare directive are revocable at any time, if you are mentally capable. You can change your designated agents or modify your instructions whenever you wish by executing new documents and revoking the old ones.
Limitations
Your healthcare agent’s authority ends upon your death. After death, other legal documents such as a will or trust govern what happens to your estate.
How Barlow Anderson Can Assist You
Anchorage residents looking to create comprehensive estate planning documents should turn to Barlow Anderson. Our team of adept and knowledgeable estate planning attorneys can help you navigate the distinctions between durable powers of attorney and advance healthcare directives, ensuring your wishes are properly documented for both financial and healthcare matters. We’ll be there every step of the way to answer your questions, comments, and concerns.
If you want to work with a smart team of empathetic estate planning lawyers, call us today at 907-375-0750 to schedule your free consultation.
