When a couple wants to share property rights without getting married, they have a variety of options available that would allow them to legally make big life decisions together. Couples can have joint tenancies, cohabitation agreements, “living together” contracts, and wills. If a couple wants to have legal grounds to make life decisions together, especially in regards to medical treatment and finances, a good choice is to create a durable power of attorney.
A power of attorney is a legal document that allows another person to make decisions on your behalf. If you ever become mentally incapacitated, you will need “durable” power of attorney to make decisions regarding medical care and finances. A durable power of attorney only differs from a non-durable power of attorney in that the document stays in effect if the person who makes them loses mental capacity.
When you create a durable power of attorney, the person you allow to make decisions for you will be able to pay your bills, manage your investments, direct your medical care, and make decisions in the business you own. It is very important to take time and care when making power of attorney documents. Typically, there are two separate documents; one for medical care and one for finances.
A durable power of attorney for health care, sometimes called a “medical directive,” allows you to name a trusted person to direct your medical care if you become mentally incapacitated. To create this document, you must first create a health care declaration, which states how you would like to be cared for in case of an emergency or if you become incapacitated. It would specify what treatments you would like to receive and ones you would not. Usually, this document would address life-prolonging treatments such as resuscitation, as well as quality of life and end of life treatments. The person named in your durable power of attorney documents will be able to:
- Make medical decisions on your behalf, if you have not already made specific instructions regarding that decision in your medical directive
- Enforce your health care decisions in court
- Hire and fire doctors and medical workers involved in your treatment
- Have access to your medical records
- Have visitation rights
A financial power of attorney is a power of attorney that you allow someone to handle financial transactions on your behalf. Financial powers of attorney can be simple and used for single transactions, such as closing a real estate deal. This type of power of attorney is created to let another person manage all of your financial affairs for you if you become incapacitated. It’s called a “durable power of attorney for finances.” With a durable power of attorney for finances, you can decide how much authority over your finances you would like to allow. The trusted person you name is usually called your “agent” or “attorney-in-fact,” though they do not have to be an attorney.
Your agent can sort through your mail, deposit your Social Security checks, and other similar tasks. They can also do more important tasks such as watching over your retirement accounts and other investments, or filing your tax returns. Your agent does not have to be a financial expert. They can simple be a person with good judgement whom you trusts. If necessary, your agent can hire professionals and pay them out of your assets to help out.
If an unmarried couple wants to have legal grounds to make major life decisions together, they should take time and care to create durable power of attorney documents, and enlist the help of an experienced attorney.
