A year into the COVID-19 pandemic, almost all of us know of at least one person who has been infected with the virus. With such a rampant virus still surging across the country, it is no wonder that people are still preparing for the worst. For some, that involves stocking up on nonperishables and preparing for another statewide lockdown. For others, however, preparation involves more, specifically, preparing Powers of Attorney. 

What Are Powers of Attorney, and How Do They Work? 

Simply put, Powers of Attorney are defined as legal documents that give one person the power to act for another person and to make legal decisions about the person’s property, finances, or medical care. Powers of Attorney are frequently used when a person becomes ill, disabled, or incapable of signing necessary legal documents for financial purposes. In times of COVID-19, Powers of Attorney have become particularly important because of the severity of some infections. If a person is incapable of thinking clearly because of the infection and he appointed someone with Powers of Attorney beforehand, the person who was appointed could make decisions on that person’s behalf. 

Frequently Used Powers of Attorney and Considerations: 

In times of COVID-19, people have used Powers of Attorney the most with respect to medical care and financial interests. 

Here are the different types of Powers of Attorney available: 

Powers of Attorney for Medical Care:

Powers of Attorney for medical care allow someone to make medical decisions on your behalf. There are two types of Powers of Attorney involving medical care, including the Advanced Directive (otherwise known as a living will) and the Healthcare Powers of Attorney. 

• Advanced Directives refer to communication between you and your doctor that discusses what you want your doctor to do in certain circumstances. Advanced Directives outline your decision with respect to life-prolonging procedures, appropriate procedures and treatments, palliative care wishes, organ donations, and spiritual and religious considerations 

• Healthcare Powers of Attorney tells the doctor who you want to make healthcare decisions on your behalf. Typically, the person you appoint to make the decisions on your behalf is someone you trust and who will be knowledgeable and calm even in midst of an overwhelming situation. This person should be able to make the best decision on your behalf despite the stress of the healthcare system and the uncertainties about the disease progression

Before deciding to opt for one or the other, it is important to weigh the implications of both. Under the Advanced Directive, you have control over your decision because you tell the doctor about the care you want. By making your own decision, you can protect your loved ones from having to make difficult decisions for you. However, the downside to this option is that it is very inflexible in times of COVID and can lead to undesired results. If you have an Advanced Directive and become severely ill with COVID, the doctors may not give you the treatment that could save your life because it goes against the initial agreement. Considering how Advanced Directives do not take into consideration advancements in medicine and how little information we have on COVID, this may not be an advisable option. 

On the other hand, opting for the Healthcare Powers of Attorney places an emotional burden on you and your loved ones. Given the current COVID times, however, this option is more preferable because the person you empower to make decisions on your behalf will be able to make decisions according to new medical information available. 

Powers of Attorney for Finances and Business Matters: 

Powers of Attorney may be used for financial reasons as well. Similar to Powers of Attorney for medical care, Powers of Attorney for finances will allow you to authorize someone to act on your behalf. The issue becomes a little more complicated though if you are a business owner seeking to empower someone with decision-making powers. 

If you are a business owner, you are able to give the responsibility and obligations to a person that you trust. However, the person you assign to make decisions on your behalf may be able to run your business and manage any business-related financial transactions, depending on the scope of the Powers of Attorney. In order to avoid this unintentional spread of power, consider the following to ensure that you designate Powers of Attorney in ways that work best for you: 

• General Powers of Attorney: The person you designate the powers to have broad powers over the business operations, including financial transactions to business operations

• Special Powers of Attorney: This specifies the decisions that may be made on your behalf

• Execute a Durable Variation on each General and Special Powers of Attorney: This would allow you to restrict the decision-making powers of the person you authorized to act on your behalf. The said person is allowed to make decisions only when you, as the business owner, become incapable

• Consider Naming the Person as a Signatory: Rather than designating someone to make financial decisions, name the person as a signatory on the bank account so that specific jobs will get done, but he/she will not be able to make important decisions 

In the current times, it is recommended that, if you are a business owner, you either execute a Special Powers of Attorney or name the person as a signatory. COVID-19 affects people differently, and there are so many things that are still unknown. Even if you become severely ill, there is always a chance of a new discovery that may help you get better. If you do get better, it will be easier to go back to the way your business was before if you do not give away the broad powers over the business operations. Therefore, to avoid further problems down the line, it is better to only designate specific issues to the person you appoint with Powers of Attorney.  

I Decided that I Need Powers of Attorney. What Should I Do? 

Appointing someone with the Powers of Attorney is a big decision and one that must be considered carefully. The most important thing is to find someone you trust and who will respect your wishes. If you would like to get started you can contact us here.