Living Wills and Powers of Attorney

The two important documents that govern your health and wealth.

A living will and power of attorney are the two most important legal documents that can help plan for your end-of-life affairs, but they do so in different ways. A living will or health care proxy outlines your medical preferences. In New Jersey, you may only choose one person as your appointed health care representative. You can also set forth directive and instructions for your care in the document. A living will is for directing your "health".

A Power of Attorney gives someone you trust legal authority to make decisions on your behalf, including the ability to step in and make financial decisions. This document often gives the agent the ability to write checks, pay bills, file taxes, sell property and a long list of other financial powers. When you’re including a power of attorney, as part of your estate plan, it's important that you make sure it’s durable. A durable Power of Attorney allows the agent to make financial decisions for you if you become incapacitated. Drafting a Power of Attorney is an very inexpensive way to appoint someone to take care of these issues if you are incapacitated. Otherwise, you will need to pursue a lengthy and very expensive guardianship application with the Courts.

Importantly, Powers of attorney and health care proxy/living wills terminate when a person dies. In some cases, the person holding the Power of Attorney is not the Executor of the Will. Deciding who is best for each of these appointments is one of the most important decisions you will make.