Power of Attorney vs. Will vs. Living Will: What’s the Difference?
When planning for the future, it’s important to understand the legal tools available to protect your interests and communicate your wishes. Three of the most commonly used documents—Power of Attorney, Will, and Living Will—serve different but equally important roles. Here’s how each one works:
Power of Attorney
A Power of Attorney (POA) is a legal document that authorizes someone (known as the agent or attorney-in-fact) to act on your behalf in legal, financial, or healthcare matters.
Financial Power of Attorney: This allows your agent to manage your money, pay bills, handle real estate, file taxes, and oversee other financial tasks if you're unable to.
Healthcare Power of Attorney: This authorizes someone to make medical decisions on your behalf if you are incapacitated and can’t speak for yourself.
POAs can be limited to certain tasks or broad in scope, and they can be temporary or durable, depending on how they're written.
Will
A Will is a document that lays out how your assets and property should be distributed after your death. It also allows you to name:
Beneficiaries to inherit your assets.
An Executor to handle your estate’s administration.
A Guardian for any minor children.
Wills must go through probate court, which validates the document and oversees the distribution of your estate.
Living Will
A Living Will—also known as an advance directive—is focused on healthcare decisions. It lets you state your preferences about medical treatment if you are terminally ill, permanently unconscious, or otherwise unable to communicate. A Living Will typically addresses:
Use of life-sustaining treatments like ventilators or feeding tubes.
Pain management and comfort care preferences.
Organ donation instructions.
This document ensures your loved ones and healthcare providers understand your wishes for end-of-life care.
Understanding the Differences
A Power of Attorney is used while you’re alive, often to help manage your affairs if you become incapacitated.
A Will only takes effect after your death and directs how your assets are to be distributed.
A Living Will is used during your lifetime but only in specific medical situations where you’re unable to communicate your wishes.
Why Use an Attorney?
While there are many online resources available, these are important legal documents that can have serious implications if not prepared correctly. Working with a qualified attorney ensures that each document reflects your intentions, complies with state laws, and avoids unintended consequences.
Gwen Fowler Real Estate, Inc. is not a law firm and does not provide legal advice. This blog is intended for informational purposes only. For legal guidance, please consult a licensed attorney.
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