A power of attorney is a key document to include in any estate plan. Unlike a last will and testament, which only goes into effect when someone passes away, a power of attorney becomes effective either right away or upon your incapacity, whichever you choose. While a comprehensive estate plan is the best way to ensure your wishes are carried out, you can also have a standalone power of attorney. At The Law Shop Minnesota, we work with clients to draft tailored powers of attorney that are legally enforceable to meet your specific needs and to give you peace of mind.

What is a Power of Attorney?

Unexpected events or illness can arise at any time. A power of attorney can give another person the authority to act on your behalf in certain situations if you become incapacitated and cannot make decisions for yourself.

There are two types of power of attorney — a healthcare power of attorney (usually called a “Healthcare Directive” in Minnesota) and a financial power of attorney. Financial powers of attorney may be either “durable,” because they go into effect immediately upon signing and remain effective during the principal’s incapacity or incompetence, or they may be “springing,” because they go into effect only when a future event occurs.

Healthcare Power of Attorney

A healthcare power of attorney gives the person you select the legal ability to make healthcare decisions for you if you are unable to do so. You can grant this individual — also referred to as your “agent” or “proxy” — the authority to make decisions about your medical treatments, surgeries, medications, and procedures. You can also allow them to select healthcare facilities and providers, access your medical records, and determine life-sustaining treatments.

Typically, a healthcare power of attorney in Minnesota is the first component of a Minnesota Healthcare Directive. In addition to naming a healthcare agent, a Healthcare Directive allows you to provide instructions for the type of treatment you would like to receive if you have a terminal illness or condition, are permanently unconscious, or are completely dependent on others for your care and are unable to speak for yourself. For instance, you may provide instructions about procedures you approve or refuse, your preferences concerning artificial nutrition and hydration, organ donation, and burial or cremation. Your agent is required to follow any instructions you provide. It’s important to have an attorney help you draft your instructions so that your wishes are legally binding upon your agents and upon your medical providers.

Financial Power of Attorney

A financial power of attorney is a separate legal document from a healthcare power of attorney. This document grants your designated agent - also called your “attorney-in-fact” - permission to handle your financial and business affairs either now or in the event of your incapacity. The authority granted to the agent may be broad or limited to specific transactions. Generally, a financial power of attorney can allow the agent to do the following on your behalf:

  • Pay bills
  • Manage your bank account
  • Pay your taxes
  • Sell and manage property
  • Make investments
  • Write checks
  • Handle legal matters
  • Enter into contracts

Your financial attorney-in-fact has strict legal duties to act only according to your wishes and in your best interests. However, it’s vital to have the assistance of an attorney when drafting this document to ensure you understand the scope of the authority being granted.

By providing specific instructions, you can help ensure your loved ones are able to act immediately and in accordance with your wishes if you are unable to act for yourself. At The Law Shop Minnesota, our legal team can work with you to create customized healthcare and financial powers of attorney to ensure your goals are met. We will walk you through every step of the process, from selecting your agent to discussing your objectives, and drafting a legally sound document.

Why Should You Have a Power of Attorney?

Any individual over the age of 18 should have a power of attorney in case of unexpected events. If you fail to have these crucial legal documents in place, decisions may be made for you that don’t align with your goals or values. If you do not choose a healthcare agent for yourself, Minnesota statutes determine who can act as your surrogate, and these may not be the persons you want to act as your healthcare agent. And, if you do not designate a financial attorney-in-fact for yourself, lengthy and costly guardianship or conservatorship proceedings in court would be required, and the judge may appoint someone to make financial decisions for you who you would not have wanted.

Notably, a mentally competent individual may remove, change, or revoke a power of attorney at any time, so you can make changes to your power of attorney documents any time you wish to do so.

Contact The Law Shop Minnesota to Learn How We Can Help

No estate plan is complete without a plan for incapacity. Located in St. Paul, The Law Shop Minnesota is committed to helping clients draft healthcare and financial powers of attorney that meet their specific needs and will give them peace of mind. Contact us online or call (651) 344-6100 to learn more about how we can assist you.