Powers of Attorney and Why We Need Them

“When I was younger, I could remember anything whether it had happened or not; but my faculties are decaying . . . soon I [won't] remember anything but the things that never happened. It is sad to go to pieces like this but we all have to do it.”

– Mark Twain

Mark Twain, an American author and humorist, is often recognized for his witty statements. However, his puns and wisecracks are often followed up by wise observations about the human condition. I would guess that many of my four readers (Hi, Mom!) have heard the first part of this quote. The last two lines, however, are less well known. Mark Twain’s observation highlights the reason for this week’s blog: powers of attorney and why we love (need) them.

As we age, our mental prowess begins to dissipate. Often, we lose our memories – many times as a result of Alzheimer’s Disease – and the ability to reason slowly fades. It is often said that we begin and end our lives in the same situation: unable to care for ourselves and relying on other people. The difference between our early years and our late years is that, as minors, our parents are legally responsible for making decisions on our behalf. At the end of our lives, however, we are responsible for our own care and decisions. What happens, then, when we become mentally incapable of making the necessary decisions?

Hence the need for powers of attorney. A power of attorney allows us to appoint another individual – usually a loved one – to be the decision maker when we become incompetent to make the decisions ourselves. There are two basic types: general (financial) powers of attorney and health care powers of attorney.

A general power of attorney authorizes the selected individual to manage our personal affairs. They may enter contracts, pay bills, sign checks, and do many other “financial” activities which we have become unable to do. A health care power of attorney authorizes the selected individual to make health care decisions with the medical staff who is providing our care. The classic example of this is seen in every episode of Fox’s House medical drama: the patient is in a coma and someone needs to decide what level of care Dr. House and his staff are going to provide. Without appointing someone to make those decisions for us, it could become difficult to decide on a course of action. Remember Terri Schiavo? If she had specifically appointed someone to make her health care decisions, the case would likely not have dragged out in such a public and painful manner for the family. (She also did not have a living will, which would have solved even more problems, but that’s the subject of a different blog…)

Between the financial matters of everyday life and the vital health care decisions that become necessary at the sunset of our lives, it is clear that powers of attorney are a pretty important part of any estate plan.

By definition, the powers of attorney discussed here come into play when you are no longer capable of making sound decisions on your own. If you can’t make sound decisions about your finances and health care, you also can’t decide who should make those decisions for you. Don’t wait until it is too late. Contact your lawyer ASAP and appoint a representative to help you when you can only remember the things that never happened.

If you would like us to prepare your powers of attorney, give us a call at 712-737-3885 or e-mail us here.

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Lawyer Joke of the Week:

A doctor and a lawyer were attending a cocktail party when the doctor was approached by a man who asked advice on how to handle his ulcer. The doctor mumbled some medical advice, then turned to the lawyer and remarked, "I never know how to handle the situation when I'm asked for medical advice during a social function. Is it acceptable to send a bill for such advice?" The lawyer replied that it was certainly acceptable to do so.

The next day, the doctor sent the ulcer-stricken man a bill. The lawyer also sent one to the doctor.

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