Traditionally, people have made resolutions at the beginning of the new year. Often, those resolutions deal with physical health or financial habits. However, the new year is also a great time to make resolutions related to our legal health.
A significant gift to your loved ones in 2024 includes four documents prepared by an attorney.
Specifically, everyone over age 18 should have a financial/general power of attorney. This document empowers one or more “agents” to make certain decisions and undertake certain actions for a “principal.” Usually, the financial/general power of attorney will cover every aspect of decision-making other than healthcare.
The importance of the financial/general power of attorney is amplified if the principal is a parent of an underage child. In these contexts, the power of attorney will nominate someone to be the underage child’s guardian if the parent/principal is alive but unable to take care of the child, as would be the case if the parent/principal is incapacitated via accident or illness.
A well-written financial/general power of attorney will also include the precise language required by the law for agents to protect principals’ assets from long-term care expenses, if the principal is unable to protect assets himself or herself.
Of course, everyone would also be well-served by having a healthcare power of attorney. This power of attorney is similar to the financial/general power of attorney, except that this power of attorney grants powers related to a principal’s healthcare.
Usually, powers of attorney name a spouse (if applicable) to be the primary agent with adult children or siblings to serve as backup/contingent agents.
The titles of some powers of attorney recite that the power of attorney is durable. However, almost all powers of attorney are durable, whether the power of attorney indicates that characteristic in its title or not.
“Durable” as used to describe a power of attorney means that the power of attorney works even when the principal is incapacitated. The law presumes that every power of attorney is durable unless the power of attorney explicitly states that the power of attorney is invalid during the times when the principal is incapacitated.
It is also important to have a living will. A living will instructs the doctor to remove the IV for nutrition and hydration if the patient is permanently unconscious and if the nutrition and hydration IV (not the pain medicine IV) will not provide comfort or relieve pain.
Powers of attorney and living wills apply when the principal/patient is alive. A last will and testament applies after death.
Every adult should have a last will and testament, especially if the adult has underage children. In the last will and testament, a parent can nominate someone to serve as guardian of the parent’s minor children upon the parent’s death.
These four documents: financial/general power of attorney, healthcare power of attorney, living will and last will and testament are referred to collectively in our law firm and some other law firms as “the Big 4.”
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
