Do I need multiple powers of attorney, or just one?

Can I have one document that makes someone my power of attorney for everything? Do I want the same person to handle my medical and financial decisions if something happens?

Well, you could do that. However, some clear reasons are not common practice and why you should re-think that approach.

First, some terminology:

In Virginia and the District of Columbia, a General Durable Power of Attorney is a document that allows someone to step in and handle your financial affairs if you should become incapacitated. Without this document, if something were to happen to you, your loved ones would be forced to petition a court for a Conservatorship before they could act on your behalf - this costs money and wastes time, so much better to be prepared for the worst.

In Virginia and the District of Columbia, a Healthcare Power of Attorney names someone to make medical decisions on your behalf. Virginia and DC law do have statutory provisions that will appoint someone (usually a spouse, parent, sibling, etc., in descending order). But, sorting out who the correct person is and then contacting them can waste valuable time.

Both of these documents are essential for your estate plan.

But, it would be best if you considered naming two separate people for each role.

One primary concern is efficiency. When someone is contacting a bank, or a doctor, to use their power to make decisions on your behalf, particular types of proof must be furnished before that relationship can be proven. To save time, you want the bank to get only the durable power of attorney document and the doctor only to get the healthcare power of attorney.

Combining both powers of attorney into one document will actually make things harder on the person trying to act on your behalf. Since the rise of identity theft crimes, banks are very picky about how they handle powers of attorney. The inclusion of unnecessary paperwork that will have to be reviewed and explained to the bank will only waste valuable time.

Another thing to consider is the stress placed on this person to make the ultimate financial and healthcare decisions for you and the amount of work both of these roles take. Sometimes, a team can operate more efficiently and rely on each other during what will be a very stressful time.

If you don't have the protections of a General Durable Power of Attorney or a Healthcare Power of Attorney in place, we need to talk. Book a consultation today.