Financial Power of Attorney vs. Medical Power of Attorney in Oregon

A power of attorney (POA) is an important legal document that grants authority to another person to act on your behalf, overseeing legal matters ranging from financial affairs to medical decisions. It fills an important role to ensure your wishes are honored should you become incapacitated in the future or be temporarily unable to manage your affairs. It can offer peace of mind knowing that someone you trust is making decisions on your behalf, rather than a court-appointed guardianship, whether you need someone to manage your affairs long-term, in a medical emergency, or simply while you are out of town.

Different types of power of attorney have different scopes of authority. It’s important to note that there isn’t a one-size-fits-all solution for these different responsibilities. For instance, a financial power of attorney authorizes decisions about money and property, while a medical power of attorney governs healthcare choices. You have the flexibility to appoint authority to one person or several, depending on your needs. Though you are never required to have both, it may be essential for comprehensive planning.

If you live in the Pacific Northwest and are considering whether you need a medical power of attorney in Oregon or a financial power of attorney, keep reading. We’ll detail the key differences between the two and how either or both can be a powerful tool to ensure your wishes are met when you are unable to act on your own behalf.

Understanding the Role of a Power of Attorney (POA)

A POA is a legal document that you, as the “principal,” use to grant authority to a trusted person, known as the “agent” or “attorney-in-fact.” The agent can be granted power to make decisions on your behalf regarding financial, medical, or legal affairs.

As the principal, you have the power to determine the scope of the agent’s authority. Their authority can be broad, governing all financial and medical matters, or it can be limited to a specific transaction alone (such as selling a piece of property).

It can also range in its duration, covering only a specific (or limited) period of time, such as only when you’re traveling out of town or recovering from surgery, or an indeterminate amount of time, such as in the case of long-term incapacity. You can also set up parameters in which the POA only becomes active under certain conditions. For instance, if a doctor determines you are no longer able to make decisions for yourself.

Different Types of Power of Attorney

To further understand the role of a power of attorney, let’s break it down to the types of powers that can be granted:

• General POA: This document grants broad legal authority to govern all financial matters that are allowed by the state. This can include, but is not limited to: selling property, signing checks, filing taxes, and managing assets.
• Limited POA: Authority is granted regarding a specific event or financial matter. For instance, an agent may only have authority to manage your retirement fund or sell a particular piece of property. A limited POA can also authorize an authority for a specified period of time. For example, you may limit an agent’s authority to the duration you will be traveling out of the country or recovering from surgery.
• Springing POA: This POA only becomes active once a certain condition is met. It must clearly define what this condition is. For instance, it might start at the onset of the principal’s incapacitation as determined by a doctor.
• Durable POA (DPOA): This document remains active even after a principal becomes incapacitated. It’s important to note that while a DPOA can pay medical bills (as well as handle other financial, legal, or property matters), they cannot make healthcare decisions. A medical POA is required to govern your healthcare choices.

Financial Power of Attorney

A financial POA allows an agent to manage financial and business affairs on behalf of the principal if they become mentally incapacitated and are no longer able to understand or make decisions for themselves.

What kind of decisions can a financial POA make? Your agent can make a wide range of financial decisions, including:

• Paying expenses, such as medical bills, debts, and taxes
• Making transactions, such as deposits or withdrawals
• Buying, selling, or leasing real estate and other property
• Applying for government benefits, such as Social Security, and filing tax returns
• Making charitable gifts and managing estate transactions
• Managing business affairs, such as negotiating contracts

The purpose of a financial power of attorney is to ensure your wishes are met in your legal and financial affairs. It’s a proactive way to ensure your choices are respected regarding your property, finances, and business in the case you become incapacitated.

A POA gives you the ability to choose a trusted individual as your agent, someone who is legally obligated to act on your behalf. Rather than abdicating this role to a court-appointed guardianship, you appoint the role to someone you trust and take your future into your own hands by making these important decisions now.

A financial POA can be set up as a general, limited, durable, or springing POA.

Medical Power of Attorney

If you live in Oregon, your medical power of attorney in Oregon can be authorized to govern your healthcare choices if, in the future, you are no longer able to make health-related choices on your own. This authority only becomes active once a doctor determines the principal is incapacitated and unable to make their own medical decisions.

A healthcare agent cannot act outside the document’s scope, so it’s important to review your document periodically to make sure it accurately reflects your wishes. What kind of decisions can a medical agent make? A medical agent can:

• Make treatment decisions, including consent to or refusal of medical and surgical treatments, including life support and resuscitation.
• Arrange care, including arranging hospitalization, in-home care, or assisted living.
• Choose or dismiss healthcare providers and institutions.
• Access medical information.
• Make end-of-life decisions, such as decisions about life support or organ donation.

Financial Power of Attorney vs. Medical – Which One Is Right for You?

If you are looking for the most comprehensive planning for your future, it’s important to have both types of POA. The future is uncertain, but you can proactively ensure it closely reflects your wishes. A financial agent strives to fulfill your legal and financial wishes, to the best of their ability, while a medical agent protects your healthcare decisions. Having both provides a way to manage all areas of your life without disruption.

These two POAs are critical to ensuring your preferences are followed by a trusted person in the event of accidents, illness, or aging. You have the power to choose now how your affairs are handled in the future, avoiding costly court intervention and ensuring your medical care and financial obligations are handled no matter what.

When you are ready to organize your affairs, contact the experienced team at Warren Allen LLP. We are ready to help you get started, no matter your current age, health, or financial assets. Secure your future today.