Definition

• A power of attorney gives one or more people the legal right to make decisions on your behalf or in your absence. This power may be limited to a specific activity or general in its application. It can take effect immediately or only in the occurrence of a future event when you are unable to make decisions for yourself. A living will differs from a power of attorney in that it is a medical document that specifies what type of medical treatment you do or do not wish to receive in the event that you are unable to make such decisions for yourself.
  
  

Benefits

• A living will allows you to decide for yourself what kinds of medical treatment you wish to receive in order to prolong or to end your life in the event of an accident or a serious illness. It also allows you to determine the amount of time you wish to receive those treatments. A living will takes the pressure off of family members who otherwise would have to make those decisions for you. One benefit of a power of attorney is convenience. A power of attorney allows you to buy and sell assets, for example, without requiring your presence. In the event that you are incapacitated, it allows for someone else to sign checks and perform other tasks to keep things running in your absence.
  
  

Designations

• The person who holds your power of attorney is called your "agent" or "attorney-in-fact." A living will is also called a "declaration." A living will is a type of document known as an advance directive.
  
  

Considerations

• If you have no power of attorney, the court will appoint a person to act for you. This process is known as an intervention. In the event of an intervention, you may not be able to choose the person who acts on your behalf. For this reason, it is important to choose someone you trust, such as a spouse or child or other close family member. The American Bar Association recommends naming a successor agent as well, should your primary agent be unavailable. Before signing a living will, discuss the provisions of the document with the person you are designating to carry them out.
  
  

Validity

• Nowadays it is common for people to sign a durable power of attorney, which is valid from the date it is signed until you die or alter or break the agreement. Nevertheless, if you move to a different state or many years have passed since you signed a power of attorney or a living will, it is a good idea to revisit those documents to be sure that they still express your wishes.