When creating an estate plan, one of the most important—and sometimes most difficult—decisions is choosing who will act on your behalf if you cannot make decisions for yourself. The key is selecting someone who can handle the responsibility effectively and honor your wishes.
UNDERSTANDING THE POWER OF ATTORNEY
Durable Power of Attorney (DPOA)
Also called a Statutory Form Power of Attorney in Michigan, this authorizes an agent to manage your day-to-day financial and personal affairs if you become incapacitated, such as:
- Paying bills and managing finances
- Handling insurance and business matters
- Signing checks and documents
- Buying or selling real estate
Limitations: Unless specifically granted, your agent cannot create or change
beneficiary designations, amend or revoke a trust, or alter rights of survivorship. Under
Michigan law (MCL 556.214), agents must act in good faith and according to your expectations.
Medical Power of Attorney (MDPOA)
Also known as a Designation of Patient Advocate, this allows your agent to make healthcare decisions if you are incapacitated, including:
- Admitting or discharging you from a facility
- Choosing or dismissing healthcare providers
- Consenting to or refusing treatment in line with your wishes
Note: An MDPOA takes effect only after two physicians certify incapacity.
CHOOSING THE RIGHT AGENT:
Durable Power of Attorney:
Look for someone who is:
- Responsible, organized, and trustworthy
- Comfortable handling financial and legal matters
- Possibly experienced in finance or business
Medical Power of Attorney:
Look for someone who is:
- Calm under pressure and available in emergencies
- Respectful of your healthcare values and wishes
- (Optional) Familiar with healthcare or caregiving