Attempting to understand the terminology in legal documents for ourselves or our loved ones can often be perplexing. Here are some explanations to help clarify them.
Healthcare Representative
A healthcare representative (often called a healthcare proxy, agent, or surrogate) is a person authorized to make medical decisions on behalf of someone else if they become unable to do so. This designation is made by you in a legal document, such as an advance directive. This may include decision-making to act in accordance with your wishes or in your best interests, communication with doctors and medical providers, approval of medical treatments and procedures as well as end-of-life care decisions. If you don’t have a healthcare representative and you are unable to make medical or personal decisions, then guardianship may be needed.
Durable Power of Attorney
A durable power of attorney is a legal document where you are able to grant one person (the agent or attorney-in-fact) the authority to act on your behalf (the principal) in legal or financial matters. POAs are versatile tools that can be tailored to fit various needs, ensuring that your affairs are managed according to your wishes if you're unable to do so yourself. A POA can manage your bank and investment accounts, handle your taxes and manage your tangible assets. If there is not a designated power of attorney and assistance is needed in managing your financial affairs, the appointment of a conservator may be required.
Guardianship
A guardianship is a legal arrangement in which a person (the guardian) is appointed by a court to make medical and personal decisions for you (the protected person) when you are unable to make decisions on your own behalf due to reasons such as age, disability, or incapacity. Guardianship is overseen by the court, and guardians are required to report annually on their management of the protected persons’ health and well-being.
Conservatorship
A conservatorship is a legal arrangement in which a court appoints an individual or entity (the conservator) to manage your financial affairs (the protected person) if you are deemed unable to do so for yourself. The conservator focuses solely on managing your financial assets and obligations. The conservator has the authority to open bank and investment accounts on your behalf, pay your bills, sell your real property to pay for your care and enter into contracts. The conservator is required to file an annual accounting with the court.
Written by PECC council member Suzanne Rowe, National Certified Guardian - Summit Fiduciary Services, LLC.
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