Planning for the future involves more than deciding what happens to your assets after you die. A comprehensive estate plan can also protect your interests if an illness or injury leaves you unable to make decisions for yourself.
Two important documents that can help you prepare for this possibility are a living will and a power of attorney. Although both can play a role if you become incapacitated, they serve different purposes. Understanding how they work can help you determine what protections you need.
What is a living will?
A living will explains your medical preferences to doctors and medical professionals. This document is used if you can’t communicate your wishes directly and need medical intervention. It typically addresses end-of-life care and decisions involving life-sustaining treatment, such as:
- Mechanical ventilation and other forms of life support
- Cardiopulmonary resuscitation (CPR)
- Artificial nutrition and hydration
- Other treatments intended to prolong life
These decisions can be extremely difficult for family members to make, particularly when they disagree about what you do and do not want. A living will provides guidance, helping ensure your wishes are respected.
What is a power of attorney?
A power of attorney gives someone of your choice, known as your agent, the ability to make certain decisions in your place. The authority you grant depends on the type of power of attorney you establish. Two common types include:
- Medical power of attorney: Authorizes someone to make health care decisions on your behalf when you cannot make them yourself. This may include decisions about surgery, medications and other medical treatments.
- Financial power of attorney: Allows someone to handle financial matters, such as paying bills, managing bank accounts and overseeing real estate transactions.
Unlike a living will, which gives instructions about your medical preferences, a medical power of attorney designates someone to make decisions based on your wishes and circumstances. A durable financial power of attorney can remain effective if you become incapacitated.
Why might you need both?
A living will and a medical power of attorney can complement each other. Your living will provides instructions about certain treatments, while your designated agent can address medical decisions that your living will does not specifically cover.
Including both documents in your estate plan can reduce uncertainty, prevent family disagreements and help ensure your preferences are respected. Professional legal guidance can help you draft your living will and power of attorney documents.