Durable Financial Power of Attorney (POA) A Durable Financial Power of Attorney empowers another person to act and make financial decisions on your behalf. A Durable Financial Power of Attorney remains in effect during the Grantor’s incapacity. Iowa law allows you to customize your financial POA to give your agent as much power as might be appropriate for your situation, but can cover needs as broad as maintaining real property, paying your bills, filing your taxes, and even making changes to your beneficiary designations. No matter the scope of their power, your agent is required by law to act in good faith and in your best interest. That said, your agent should be not only good with money, but someone you can trust and who understands your wishes. Medical Power of Attorney (POA) A Medical Power of Attorney names another person or persons to make medical decisions on your behalf in the event you are unable to do so yourself. Similar to a financial POA, a medical POA can be customized to limit your agent’s power. It is important to note that both Durable Financial Powers of Attorney and Medical Powers of Attorney can be made effective immediately, or they can be made effective upon a physician’s statement stating that you are no longer able to make medical and financial decisions.
Living Will A Living Will is a legal document
directing that life-sustaining procedures be withheld or withdrawn. This document takes effect only if you are unable to make healthcare decisions, and the condition causing this state is incurable or irreversible and will result in death in a relatively short period of time or a state of permanent unconsciousness without any reasonable likelihood of recovery. The medical paperwork you are asked to fill out upon visiting your doctor will likely ask if you have a Living Will. If you do, you should provide a copy to not only your primary care physician, but any specialist you may visit as well. Although all the documents above exist to help you when you are incapacitated, all must be created when you are still able to make decisions for yourself. It is important then to not delay this part of your estate planning, as by the time a need arises, it is often too late. This is why it is critical to make sure that the individual named in your financial and/or medical POA has a copy of the applicable POA document because it may become necessary for them to use after a medical emergency. It is also important to note that any time you wish to make a change to your Medical POA, Financial POA, or Living Will, you can do so by creating a new version of the document. However, it is crucial to remember to provide anyone who may have a copy of your previous POA or living will with the updated version.
If you have further questions, we invite you to schedule a meeting with one of our experienced Trust and Wealth Management Officers by calling 1-800-899-8858 or by email at Trust@HillsBank.com. We look forward to serving you as your trusted advisor.
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