When Life Gives You Lemons — Call an Attorney

A loved one with declining mental health may ask you to help with legal and financial decisions. While volunteering for this role may work for a short period, you will eventually need legal authorization. But do you need a power of attorney over the person, or do you need guardianship? Both legal documents allow you to make decisions for someone else, but they are different. Understanding the difference between the two may help you decide.

What Is A Power Of Attorney?

A power of attorney is a legal document appointing someone to manage your life affairs. These affairs include:

• Property
• Medical
• Financial

While this document is often a part of end-of-life planning, anyone over 18 can create one. It is a very common tool used by people who can no longer handle their affairs due to age, medical conditions, or disabilities.

People who will be unavailable to handle their affairs for an extended period can also use POAs. For example, POAs benefit people deployed in the military, incarcerated, or working or studying abroad. 

Some POAs become valid once you sign them, and others do not take effect until the person becomes incapacitated.

POAs are only valid until the death of the person who created the document. At death, the executor of the estate takes over, although this can be the same person.

There are numerous types of POAs. Some of these include the following:

• Durable
• Nondurable
• Limited
• Health care
• Military
• Financial

A guardianship attorney can help you figure out which one you need. 

What Is Guardianship?

Guardianship is also a legal process that appoints someone to legally make decisions for someone (the ward) who is incapable of doing so. Examples include minors or those who can no longer safely make or communicate sound decisions about their person or property.

One of the most significant differences between the two is who creates them. Power of attorney is granted by you or the person you assist. The court appoints guardianship. 

The court will only restrict or delegate rights to a guardian when it is deemed necessary. Some of the rights may include:

• Determining housing
• Consenting to medical treatment
• Managing property
• Contracting
• Making end-of-life decisions. 

A good guardian always considers the wishes and desires of the ward but ultimately makes the best decision to keep the person safe. While a POA does not have to file any report, a guardian may have to report to the court annually. Reach out to a guardianship lawyer to learn more.