A financial agent wields a great deal of power therefore, the principal should appoint a trustworthy individual.ĭurable (Financial) Power of Attorney – A legal document that appoints a financial agent to the principal’s estate. Appointing a financial agent is an important step because it means the principal’s estate will be looked after even if they become mentally or physically incapacitated. Unlike a health care agent, a financial agent gains power as soon as the POA document is signed. Ī financial agent, or simply “agent” as per the Power of Attorney document mentioned below, is authorized to make financial decisions on behalf of the principal who executed the POA. Signing Requirements – The principal and two (2) witnesses.A Health Care Proxy can include limitations regarding the agent’s authority, otherwise the agent will have carte blanche in regard to the types of medical treatment the principal will receive.

A health care agent is also appointed through execution of this document and they are in charge of communicating the principal’s health care wishes to medical professionals and health care providers. Health Care Proxy – A Health Care Proxy, or Medical POA, contains instructions regarding the type of medical treatment and health care a principal will receive in the event of incapacitation.

The principal should appoint an individual who is close to them, who knows their values, and, more importantly, who will take these values into consideration when making any health care choices for the principal.

A health care agent will gain power only if the principal becomes incapacitated that is, should they at any point be incapable of making important medical decisions for themselves. The execution of a Health Care Proxy involves the appointment of a health care agent, a person who will make medical decisions on behalf of a principal (individual executing the document).

Checklist fo estate planning