Why Financial and Health Care Powers of Attorney Belong in Every Estate Plan
Most people think about estate planning in terms of what happens after they die. However, some of the most important decisions concern what happens while they are still living, particularly if illness, injury or cognitive decline leaves them temporarily or permanently unable to manage their affairs.
Consider this: Who would pay your bills, manage your investments or make medical decisions if you were suddenly unable to do so? Would that person know your wishes? And would they have the legal authority to act on your behalf?
Two important estate planning documents can help answer these questions.
A durable financial power of attorney allows individuals to designate a trusted person, known as an agent, to handle financial and legal matters on their behalf. Depending on the authority granted, that person may manage bank accounts, pay bills, oversee investments, handle property transactions or address tax matters.
The word “durable” is significant. It generally means the authority continues even if an individual becomes incapacitated. Without appropriate planning, loved ones may need to seek court authorization to manage financial affairs, potentially creating additional expenses, delays and stress.
A health care power of attorney, sometimes called a health care proxy, allows individuals to appoint someone to make medical decisions if they become unable to make or communicate those decisions themselves.
This document works alongside an advance health care directive or living will, which outlines preferences regarding medical treatment, life-sustaining interventions and end-of-life care. Together, these documents help ensure medical decisions reflect an individual’s values while reducing the burden on loved ones who might otherwise be left to make difficult choices without guidance.
Yet many Americans have not taken these steps. According to a 2025 Pew Research Center survey, only 31% of U.S. adults have created a living will or advance health care directive.
Choosing someone to serve as an agent requires careful consideration. The most appropriate person may not necessarily be a spouse or oldest child, but someone who can be trusted to act responsibly, communicate clearly and respect an individual’s wishes, even under difficult circumstances.
Individuals may also choose different people to manage financial and health care responsibilities and designate alternate agents if their first choices are unavailable.
Equally important is having conversations with those appointed to these roles. While legal documents establish authority, personal conversations provide understanding. Discussing values, explaining priorities and sharing the location of important documents can help ensure loved ones are prepared to act when needed.
Planning for incapacity is an act of care, both for oneself and for loved ones. It can help protect personal independence, preserve financial assets and provide families with greater confidence during uncertain times.
During National Estate Planning Week, Oct. 19-23, individuals are encouraged to review their estate plans and consult an estate planning attorney to determine whether their financial and health care powers of attorney are current, properly drafted and aligned with their wishes. Requirements for these documents vary by state.
Meharry Medical College’s Office of Gift Planning provides educational resources to help individuals explore their estate and legacy planning goals.
A meaningful legacy extends beyond what we leave behind. It also reflects how we choose to live, care for one another and honor what matters most.
Learn more: Meharry Medical College Office of Gift Planning
Written By:
Sarah A. Andrews, Ed.D, MBA
Senior Director of Development, Principal Gifts and Gift Planning
