The person's family may then be forced to make difficult decisions regarding treatment and financial options without knowledge of the person's own wishes. If the person dies and doesn't have a will, the family is again placed in a difficult situation, while a court decides how to divide up the person's assets. You and your family can be prepared for a catastrophic illness or death by making sure that you have important legal documents in order right now. It is very important that the loved one discuss his or her wishes with the surrogate decision maker. Power of Attorney Allows a person to legally make financial decisions on the behalf of another.
Decisions can range from paying bills to closing on real estate to making investments.
If the person granting the power of attorney becomes mentally incompetent, the power of attorney is no longer valid. A durable power of attorney either allows the contract to continue even when the individual becomes mentally incompetent, or the contract can state that the durable power of attorney goes into effect once the person cannot make decisions on his or her own. Durable Power of Attorney for Health Care Contract that designates an individual to make all health care decisions if the individual who arranged the contract is not able to make his or her own decisions. Can also be used for financial decisions. Can also specify if other medical procedures should be performed.