As we discussed last month, as each child turns 18 years old, his or her parents lose the legal ability to handle personal and financial affairs for their children. This places each newly minted adult in a very precarious situation. If he or she becomes seriously ill or injured, there is no one who has the authority to step in and take care of business like: terminating a lease agreement, cell phone contract, or car insurance. Imagine that you are suddenly unable to manage your personal affairs. Who has the legal authority to manage them for you? Your children are now you, adults, too.
Unfortunately, if your child has a significant disability, he or she may not have the decision-making capacity to sign powers of attorney, leaving you no choice but to obtain a guardianship and conservatorship so that you can stay in your role as decision-maker.
But, for the rest of you, get these documents in place now. Start with a health care power of attorney and living will. The health care power of attorney is used after a doctor has said that the person does not have the ability to make his or her own medical decisions. A living will is often included in a health care power of attorney. It usually states that a person does not want to be kept alive simply for the sake of being kept alive, if the person has a terminal illness and the doctors think the person is going to die soon, regardless of the medical intervention. Some people confuse the term living will with a last will and testament. They are not the same. A living will IS also called a Medical Advanced Directive. These are interchangeable terms.
The other power of attorney is a general durable power of attorney. It is for everything that is not medical decisions. Refer to the list above, and add things like picking up mail, taking care of a pet, applying for government benefits, etc.
It is very common for a new adult to name a parent as the agent under either of these types of powers of attorney and for a married person to name a spouse. However, the selection of who your primary agent should be and who your back up agent should be is the choice of the person granting the authority. Once signed, these do not have to be permanent documents. The signer can cancel them at any time, and they should be updated every couple of years.
