Durable Financial Power of Attorney in Texas

Michael L. Holland — Thu, 26 Oct 2023 10:50:34 +0000

Defining Durable Financial Power of Attorney & Other Important Terms

What is a Durable Financial Power of Attorney? What about an advance healthcare directive? What about a living will?

When it comes to legal and financial planning, it’s easy to feel overwhelmed. Every specialized area of life has its own vocabulary. Estate planning and elder law have their own lingo, too. Without understanding these key terms, it’s easy to get frustrated trying to properly protect yourself and those you care about.

The shortest path to peace of mind when planning is knowledge. The simple act of understanding the words involved, will inoculate you from getting lost or overwhelmed. Continue reading to better understand three cornerstone estate planning documents:

Powers of Attorney,
Durable Powers of Attorney, and
Living Wills

The Differences Between a Texas Durable Power of Attorney, Medical Power of Attorney and Living Will.

What is a Power of Attorney?

Before we can discuss the different types of Power of Attorney (POA), it’s important to understand exactly what a POA is supposed to do.

A Power Of Attorney is a legal document that gives one person (the attorney-in-fact) the right to act and/or make decisions on behalf of another person (the Principal). What specific actions or decisions can be made by the attorney-in-fact vary according to the specific contents of the written Power of Attorney. A general or uniform Power of Attorney is what you’ll use when the Principal wishes the attorney-in-fact to have complete legal control over their affairs.

What is a Texas Durable Power of Attorney?

A Durable Power Of Attorney, short for Power Of Attorney with Durable Provisions, is required when the attorney-in-fact wishes to continue acting on behalf of the Principal even after the Principal suffers a disability or legal incapacity. For example, if your parent or loved one suffers from a cognitive or mental issue but has prepared a Durable Power Of Attorney, the person they designate can serve as that person’s surrogate decision-maker no matter how their illness progresses.

Without the additional durability language the authority in the document ends with the Principal’s loss of cognition.

Types of Power of Attorney

Now that you know the difference between a non-durable and Durable POA, let’s quickly run through the some unique Powers of Attorney forms you might request from your elder law attorney. Sometimes, a general POA isn’t the right solution, so these are some alternatives to consider:

Medical Power of Attorney: Otherwise known as a Health Care Power Of Attorney, this is a limited POA that explicitly provides the attorney-in-fact with the authority to handle medical and healthcare-related decisions in the event that you no longer can make those decisions for yourself.

Financial Durable Power of Attorney: Much like the Medical POA, this is a limited Durable Power Of Attorney that only gives the agent legal power to make decisions over the Principal’s financial affairs.

These are the two most common “limited” Powers of Attorney, but hopefully you are starting to understand how to decipher what each type might mean. Last but not least, we have a living will.

What is a Living Will?

A living will, which is not the same thing as a living trust, is what’s called an “advance healthcare directive”. In plain English, it’s a legal document that officially describes you or your loved one’s life-prolonging healthcare wishes. For example, if you have a debilitating stroke and don’t wish to be kept alive on life support, a living will is how you make that clear to your family and healthcare providers. A living will cannot become effective until the Principal has become incapacitated.

Putting the Pieces Together

The goal of this article is to make it easier to talk to your Houston Elder Law lawyer about proper estate planning. By knowing the difference between general and limited Powers of Attorney, making an informed decision with your parents or you and your spouse should be much easier.

If you have further questions about living wills, Durable Financial Powers of Attorney or anything else related to estate planning, call (713) 970-1300. I’d be happy to help you and your family plan ahead.

The Dangers of Keeping Your Estate Planning a Secret.

Michael L. Holland — Sat, 04 Feb 2023 16:50:35 +0000

Recently, I’ve noticed a few clients preferring to prepare an estate plan without informing their adult children.

They have the desire to plan for the distribution of their estate after their death and to make sure someone they trust has the authority to make important health and financial decisions when an illness or disability prevents them from doing so themselves.

Keeping your estate and elder care planning a secret from your family might seem like a way to avoid conflict, but it can lead to confusion, delays, and costly legal battles down the road. Without clear communication, loved ones may struggle to carry out your wishes, face unnecessary court involvement, or even make critical medical and financial decisions without proper guidance. This article explains why secrecy can be harmful and how open discussions can protect your legacy and ensure your final wishes are honored.

In most cases the planning is being done to protect other family members. In many instances family members are also being authorized as the agents to act on their behalf. Yet they prefer to complete the planning without notifying these very people.

5 Reasons Parents Keep Estate Planning Secret

Keeping your family in the dark about your estate plan is counterproductive. From my perspective, there are 5 reasons why parents desire secrecy.

The parents have made decisions they fear will upset one of their kids – like who they chose to be executor under their will or the agent under the power of attorney
They feel that if their children know how much money they have, they will endure pressure to provide an “advance inheritance.”
They worry the child given authority will abuse the power.
Emotionally, they have a hard time facing an end-of-life discussion. Coming in to set up the plan was difficult enough. Recounting their plans somehow emphasizes their mortality.
They believe that discussing money issues is improper.

There may be other reasons, of course. Everyone is different. Circumstances differ.. Granted, if your family dynamics are lousy, telling your children about the decisions you’ve made could be uncomfortable. The reality is that it’s your life and your money. What you do with it is up to you.

When it comes to family, sometimes emotions trump common sense. A skilled Elder Law attorney considers these issues. Generally speaking, the desired outcome works out better if your family knows your plans.

The Goals of Estate and Elder Care Planning

An estate plan and elder care plan have three goals:

To ensure your final wishes are handled as you want,
To ensure someone you trust is there to make critical decisions about your health and assets when you are no longer able to do so and
To minimize court involvement.

Keeping your plans secret foils each of these end goals.

Elder care and estate planning typically involve a number of legal documents designed to provide for those you care about when you die or have them care for you when you become too ill or frail to safely manage your life.

Legal documents like wills, trusts, financial and health care powers of attorney and advanced directives – when properly drafted and coordinated – allow someone you trust to act in your best interests without costly court involvement.

Naming a family member (or anyone for that matter) as your representative without informing them before the crisis hits slows down the process, increases the costs, and may impact health and financial decisions. Having everyone on the same page offers several advantages that outweigh any awkwardness you might feel.

That’s why I encourage you to bring your children along to your estate planning meeting. That way, they understand the rationale for your decisions and won’t have to start from scratch if you become incapacitated.