Basics of Advance Directives

Advance directives are written instructions for actions to be taken in the future in case people become incapable of making decisions. They designate specific people (typically referred to as “agents” or “proxies”) to step in for the creator of an advance directive to make decisions that the creator wishes and to take the burden of decision-making off family members or other caregivers.

Benefits of advance directives include: reducing disagreement about health or financial decisions among family members and, for health-related documents, avoiding unnecessary suffering by a patient. Many people think advance directives are just for “old people,” but they are important for all adults. One auto accident or severe illness can result in anyone needing advance directives.

 

There are three common advance directive documents that authorize someone to legally act on someone’s behalf until the creator revokes them or dies:

 

Living Will- Specifies desired medical treatment in “end of life” situations including a terminal condition and a persistent vegetative state. For example, the use of feeding tubes, breathing machines (ventilators), and “Do Not Resuscitate” (DNR) orders.

 

Health Care Proxy- Also known as a durable power of attorney for health care, this document designates someone, often called a surrogate, to make health care decisions.

 

Durable Power of Attorney (PoA)- Designates someone, often called an agent, to make financial transactions (e.g., paying bills, making deposits, applying for benefits, preparing tax returns, and signing checks). The agent’s power ceases at the time of the durable PoA creator’s death.

 

Below is some general information for the use of advance directives:

 

Communicate With Your Agent- Never “surprise” people by listing them in advance directive documents without obtaining their permission. Instead, formally request their assistance and have a discussion about your preferences for health care and the location of key financial documents.

 

Make Documents Accessible- Store advance directive documents in an accessible location that trusted family members or other individuals know about. Avoid using a locked strong box or desk drawer (unless the agent has a key) or a safe deposit box at a bank.

 

Review and Revise- Update advance directive documents every time there is a life change that affects people named in key documents. For example, a now ex-spouse who is named as a health care proxy or a durable power of attorney agent who pre-deceases you.

 

Share Health-Related Documents- Bring a copy of health care advance directives to a hospital where you are being treated (e.g., surgery) so they are available if needed and more likely to be noted in your patient chart and “noticed” by treating doctors. 

 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.