A few key medical documents help round out an estate plan and give guidance to your loved ones.
Life is filled with all sorts of financial ups and downs (some of them planned, some not). Take your health: No one wants to have an injury or illness that requires a visit to the hospital, but some 15 million Americans have some kind of surgery every year.
If something happens to you, and you’re unable to make decisions about your care, those choices may fall on a loved one. Knowing the resources you have at your disposal and the choices you want made on your behalf can help. Including these health care documents—some legal, some informational—in your estate plan helps your loved ones manage your finances (and your care) when you can’t.
If you’re unable to make health care decisions, a medical power of attorney (sometimes called “a durable power of attorney for health care” or “health care power”) is a legal document that identifies a health care proxy. That person is then empowered to make health care decisions for you.
Of note: Medical treatments often have financial implications, so some people name the same person to be their health care proxy and durable power of attorney (see below).
This legal document gives a proxy the power to make financial decisions, including health insurance information, billing, and claims, on your behalf.
HIPAA stands for Health Insurance Portability and Accountability Act. A HIPAA release or authorization is a legal document that allows a hospital to release current health care information (which may have financial implications) about you to loved ones other than your spouse. Of note: If there’s someone you may be responsible for over the age of 18 (say, a college-age child) that lives elsewhere, fill one out for each state.
A do not resuscitate order (sometimes called a physician order for life-sustaining treatment) must be signed by the health care proxy and cosigned by a physician. It is a legal document and the only valid form that medical staff will follow during cardiac or respiratory arrest should you require life-saving support.
While it’s not a legal document, a living will (also called an advance health care directive) offers your health care proxy instructions for your medical care should you be unable to make decisions for yourself. It’s typically included as part of an estate plan because treatment choices have financial and health implications.
Conversations and planning for illness or injury can be scary, and difficult. That might be part of the reason why fewer and fewer people have a will or estate plan—including Americans with children younger than age 18.
While your conversation should include figuring out your health care proxy, it should also include conversations with other loved ones about your wishes. Your health care proxy also must understand their responsibilities and that they have the information they need, including:
- Your medical records with diagnoses, medical history, and current medication
- Health care providers, both general care and any specialists
- Health care insurance records with policy numbers and contact information
- End-of-life instructions such as memorial service and organ donation information
When did you last check and update your retirement plan beneficiaries? Log in to your Principal account to review who you have named, and change as necessary.
