Powers of Attorney

Healthcare and Financial Powers of Attorney are vital for making sure you and your loved ones are taken care of if incapacitated due to illness or an accident.

Limited Power of Attorney Versus General Power of Attorney

As the principal, you can grant limited power or general power of attorney to your agent. If your durable power of attorney is limited, your agent may only conduct specific or limited transactions such as selling a car or a real estate transaction. A general power of attorney is where the principal authorizes the agent much broader authority such as depositing or withdrawing funds in a bank account, selling property, or engaging in any other transactions on behalf of the principal. Similarly, if your health care power of attorney is limited, you can specify if you want your agent to make end-of-life decisions or not.

What is a Durable Power of Attorney?

A durable power of attorney, sometimes called a financial power of attorney, authorizes someone else to make financial decisions on your behalf in the event that you are unable. The person who gives the power is called the principal and the person who power is given to is called the agent (also known as an attorney-in-fact). Under Arizona laws, a power of attorney document must be signed by the principal and a witness before a notary public. A “durable” power of attorney means that the document is valid even if the principal is declared mentally incompetent. As principal, you can revoke the power of attorney for any reason and at any time but only in writing on a revocation form. Click here to download a Free Durable Financial Power of Attorney.

How Does a Durable Power of Attorney Work?

A durable power of attorney can only grant power to an agent if the principal is deemed incapable. The power only goes into effect in the event of an emergency. This is the most common kind of power of attorney because it allows control over your own accounts. If an emergency does occur, the durable power of attorney ensures that loved ones will not have to struggle to take care of important financial matters or even everyday bills. Naming a durable power of attorney is a proactive form of estate planning so that when the situation improves your family can resume normalcy with as little financial difficulty as possible.

A durable power of attorney can also give immediate power over the principal’s affairs. Granting immediate power can be helpful for those who want a loved one to take care of their affairs in order to forego financial stressors later in life. Granting an immediate power of attorney might also be an option for clients who move or travel frequently to safeguard and grow their assets while away in another state or out of the country. This was a common need during the Covid-19 pandemic, as travel bans and lockdowns left many people stranded and in need of someone to manage their affairs at home.

What is a Health Care Power of Attorney?

A health care power of attorney is a written document that names the person who will direct your medical care when you cannot because of incapacitation from illness, accident, or advanced age. Just like the durable power of attorney, the person who gives the power is called the principal, and the person who power is given to is called the agent. A health care power of attorney puts a plan in place and legally outlines your intentions, giving your family peace of mind during stressful life events. The document allows you to identify medical procedures or medical decisions you do or do not want to receive. For example, you can state your wishes for organ donation, whether or not an autopsy should be conducted, and what your desire is pertaining to funeral and burial disposition. There is also ample room in the document to detail any issues you might have with a specific procedure. Click here to download a Free Health Care Power of Attorney.

Who Will Make Medical Decisions if You Don’t Have a Health Care Power of Attorney?

When no health care power of attorney exists, a spouse will generally have authority over decisions. However, these important matters could end up in the hands of individuals who know little about your preferences including estranged family members, doctors, or even judges. In the absence of a health care power of attorney or a spouse, someone must apply for guardianship in order to make health care decisions on your behalf. Guardianships can be costly and take time to arrange. All when the need to make medical decisions is often immediate and pressing.

Arizona Power of Attorney for Mental Health Care

Arizona is one of the few states to offer a mental health care power of attorney. Regular health care powers of attorney do not include the authority to make mental health decisions and do not give your agent the power to consent to your admission at behavioral facilities. The mental health care power of attorney allows you to grant your agent the power to admit you to a mental health facility, but only after evaluation by a licensed professional. A mental health care power of attorney is helpful for everyone, regardless of age or health status, but is especially critical in situations when someone loses mental capacity, such as developing Alzheimer’s or dementia. Without a mental health care power of attorney someone will have to pursue an emergency guardianship if you’re unable or unwilling to accept inpatient behavioral health treatment when required.

What Happens in the Event of an Emergency?

A health care power of attorney and a mental health care power of attorney are not effective in the event of a medical emergency. Ambulance and hospital emergency department personnel are required to provide cardiopulmonary resuscitation (CPR) unless they are given a separate directive that states otherwise. This directive is called a “prehospital medical care directive”, or “do not resuscitate (DNR) order”. These are designed for people whose poor health gives them little chance of benefiting from CPR. There is a specific form required by the Arizona Department of Health Services for this type of directive which must be signed by you, your physician, and a witness. Your physician can give you more information about this type of directive.

Each estate plan should provide for multiple eventualities. The health care power of attorney and mental health care power of attorney are important legal documents that address your medical and mental treatment and keep decisions about your well-being as close to your intent as possible.

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