Whether you are turning 18, or did so long ago, having a powerful Durable Power of Attorney for Finances, Durable Power of Attorney for Health Care Decisions and HIPAA Releases can save you and your family an enormous amount of money, time, aggravation and heartache.
Durable Power of Attorney for Finances
Having this document in place can keep your family from having to go to Probate Court to set up a Conservatorship so that they can handle your finances. If you are married, you and your spouse are probably on all assets. However, tax deferred assets like an IRA, ROTH, 401(k) and most life insurance policies are in individual names. Unless your Durable Power of Attorney specifically mentions those types of assets, your financial institution or life insurance company may not accept the Durable Power of Attorney.
Durable Power of Attorney for Health Care
Many people believe telling their family their health care wishes are sufficient. The law says that your must put your wishes in writing and appoint someone to make decisions for you. Just because you are married does not give your spouse the ability to make health care decisions for you. This is especially important if you do not wish to be kept alive indefinitely by artificial means (feeding tube and ventilator). If you don’t have a Durable Power of Attorney for Health Care, then your family will need to go to Probate Court to have someone appointed as your Guardian to be able to make health care decisions for you.
Medical personnel can be fined between $50,000 and $1,000,000 a year for speaking to a family member that you have not given written permission for them to talk to. HIPAA Releases allow you to designate who, over the age of 18, can know about your private medical life. People listed on a HIPAA Release DO NOT make health care decisions for you. They do have the ability to call the hospital to check on you and can be present when a doctor is giving a report or test results.
The HIPAA Releases should be a separate document from your Durable Power of Attorney for Health Care. The Durable Power of Attorney for Health Care can not go into effect until a doctor declares that you are incapable of making your own health care decisions. If you are unconscious due to a car accident, you still want your family to be able talk to the doctor without being declared incompetent.
FYI – HIPAA stand for the Hospital Insurance Portability and Accountability Act of 1996
Check out this awesome publication specially prepared by the Missouri Bar as an introduction to the rights and responsibilities as an adult citizen of the United States. There is no manual that tells someone everything they need to know once they become an adult in the eyes of Missouri law. The Missouri Bar has attempted to answer basic questions in several areas that affect everyday life in Missouri. It can be alarming the day someone turns 18, and the Bar wants everyone to be as fully informed as possible.
CLICK HERE for the Turning 18 publication.