Powers of Attorney Basics

By: Janice Dantes

 

Most Filipinos I encounter work in healthcare. They encounter people who have to sign “do not resuscitate” (DNR) documents and other legal documents prior to surgery. However, many Filipinos I meet do not have their affairs in order, let alone, power of attorney documents. Below is some basic information about powers of attorney.

1. What is a Power of Attorney? A power of attorney is an appointment of a person you trust (“agent”) to make decisions for you when you are incapacitate and cannot make them for yourself. The agent can be any person (e.g. spouse, adult child, other relative, friend, etc) over the age of 18 years old who you trust to make healthcare and/or financial decisions for you when no longer fan make them for yourself.

2. There are two type of Powers of Attorney: Healthcare and Property. You sign a Power of Attorney for healthcare to appoint an agent to make healthcare decisions for you when you cannot make them for yourself. You sign a Power of Attorney for property to appoint an agent to make financial decisions for you when you cannot make them for yourself. They can be the same person or they can be different people. For married people, the most common agent is the spouse. However, I have encountered people who choose other people because they may feel that their spouse cannot “pull the plug” if they need that to be done.

3. Successor Agents. While not required, I recommend that you also appoint successor agents. These are backup decision-makers in case your selected agent cannot make decisions on your behalf. This may arise if your agent was also involved in the same accident as yourself or dies before you. Be sure you let your successor agent their role.

4. What does it mean to be “incapacitated?” You are incapacitated if you are completely unable to make decisions for yourself. Your incapacity can be temporary (e.g. you are in a coma or hospitalized) or permanent (e.g. you have Alzheimer’s or other disease where a doctor declares that you no longer can make decisions).

5. Why do you need a power of attorney? Powers of Attorney act like an insurance policy. If you die in your sleep or die very quickly, they never come into effect. However, if you are involved in an accident or you develop Alzheimer’s disease or other disease impacting your decision-making, your family and friends may be fighting over your care and who should make decisions for you, including where you should reside and how to spend your money. This can lead to lawsuits resulting in expenses that your estate is responsible for paying for. It may also lead to decisions you would not have made for yourself.

If you have any questions about powers of attorney, please contact me at (312) 546-5077 or janice@pinaylaw.com.

Thank you for reading. Until we meet again, love one another.