Financial Matters

All people, and especially seniors should make specific plans of action for what they want to happen when they are incapacitated by aging or illness, and for when they die.

There are four basic documents that should be executed when a person is of sound mind to insure their wishes concerning their assets and decisions about their health care are carried out.

The four documents include a written will, a Durable Power of Attorney, a living will and a health care proxy.

Written Will:
A written will is usually prepared by an attorney and ensures that assets will be divided according to the senior's wishes. An executor or executrix is named and is expected to pay taxes and debts out of the estate and assures that all other wishes are carried out.

Specific information that should be included in a will are a list of specific bequests, funeral and burial instructions, a list of important financial and legal documents such as deeds, titles and insurance companies and a list of doctors, attorneys, accountants, banks and financial advisors.

Durable Power of Attorney:
The Durable Power of Attorney authorizes an agent (usually a family member) to make decisions for him/her. The document is signed, witnessed and notarized. The person completing the Durable Power of Attorney needs to realize that they are giving another person the authority to make decisions for them that can include residential placement, personal and financial matters and health care.

In order for it to be durable the DPOA must say that it is not affected by the person's future incapacity or disability.

It is important to spell out all powers and access the person is giving to the agent. The DPOA should be updated every few years to keep information pertinent.

Advanced Directives (Health Care Proxy and Living Will):
Most states require that a DPOA include a health care proxy which must be executed when the person is still competent. An agent is assigned (usually a family member) to make decisions for the person regarding their health when they are not competent to make the decisions for themselves. The health care proxy authorizes the agent to make health care decisions, to provide consent to or withdraw treatment and to authorize admission to or transfer from a health care facility.

Both the health care proxy and the living will constitute advanced directives and go hand in hand.

A living will makes know what the person wants to happen when they are faced with a terminal condition. It spells out the person desire to refuse articial life=prolonging measures like being put on a respirator or receiving nutrition or hydration. It also appoints a health care surrogate to carry out their wishes. The proxy gives the surrogate the legal right to enforce the living will.