Estate planning covers more than what happens after death. It also addresses who can make decisions for you if you cannot speak for yourself. Two legal tools handle this issue, but they serve very different purposes.
A financial power of attorney and a healthcare representative each control separate areas of authority. Understanding the difference helps you decide who should manage your finances and who should guide your medical care if you become incapacitated.
Financial power of attorney: authority over money and legal matters
A financial power of attorney allows someone you trust to manage financial and legal affairs on your behalf. This person is called your agent. Their authority can cover a wide range of financial responsibilities. Common duties may include:
- Banking and bill payment: Access accounts and pay regular expenses.
- Real estate transactions: Buy, sell or manage property.
- Taxes and investments: File tax returns and oversee financial accounts.
- Insurance and business matters: Manage policies or company decisions.
Ohio law governs financial powers of attorney under the Uniform Power of Attorney Act. The document must be signed by the principal and acknowledged before a notary public to be valid. In Ohio, a financial POA is durable by default. This means it remains effective even if you later become incapacitated under the Ohio Revised Code §1337.21.
A financial agent cannot make medical decisions. Their authority stays limited to money, property and legal matters.
Healthcare representative: authority over medical decisions
A healthcare representative handles medical decisions when you cannot communicate your wishes. This role is also known as a healthcare proxy or healthcare agent. Their responsibilities may include:
- Treatment decisions: Approve or refuse medical procedures.
- Doctor and facility choices: Select healthcare providers or facilities.
- Surgical consent: Authorize procedures or treatment plans.
- End-of-life decisions: Follow instructions in a living will.
Unlike a financial agent, a healthcare representative usually acts only after a physician determines that you cannot make or communicate medical decisions. Their authority focuses strictly on medical care.
Planning ahead for legal protection
Financial and healthcare powers of attorney work together as part of a complete estate plan. Each document allows you to choose someone to act in a specific role if you cannot act for yourself.
Because these documents must meet specific legal requirements, many people choose to discuss their estate planning options with an attorney. A legal professional can help ensure the documents comply with Ohio law and reflect your intentions.