Most people think of estate planning as deciding who inherits. The documents that get used most often, though, are the ones that work while you are alive. Ohio uses two separate powers of attorney, and they do different jobs.
Financial power of attorney
A financial power of attorney names an agent to handle money and property for you: banking, bills, taxes, insurance, retirement accounts and real estate. A durable power of attorney stays in effect if you become incapacitated, which is the reason to have one.
- Some powers have to be granted expressly. A general form may not let your agent make gifts, change beneficiary designations or deal with a trust.
- A power of attorney used to sell or mortgage real estate has to be recorded with the county recorder.
- Your agent's authority ends at your death. After that, your executor or trustee takes over.
Health care power of attorney
A health care power of attorney names the person who makes medical decisions if you cannot make them yourself, and lets that person speak with your doctors. It is usually signed together with a living will declaration, which states your wishes about life-sustaining treatment if you are terminally ill or permanently unconscious.
What happens without them
If you become incapacitated with no power of attorney in place, your family may have to ask the probate court to appoint a guardian. That means an expert evaluation, a hearing and continuing reports to the court.
Choosing an agent
- Pick someone you trust who is organized and close enough to act.
- Name a backup in case your first choice cannot serve.
- Tell the people you have named, and tell them where the documents are kept.
Review your powers of attorney after a marriage, a divorce, or the death or illness of anyone you named. If yours are more than a few years old, or you are not sure a bank would accept them, call our Middletown or Monroe office and we will look them over with you.