Key Differences: Living Will vs. Power of Attorney

A living will and healthcare power of attorney can both help communicate your medical wishes if you become unable to make or communicate healthcare decisions, but they serve different purposes. A living will provides written instructions about certain types of medical care, while a healthcare power of attorney generally names someone to make healthcare decisions on your behalf. Depending on state law, these documents may be separate or combined into an advance healthcare directive.

A financial advisor can help you consider how financial planning fits alongside your broader estate and end-of-life plans.

What Is a Living Will?

Living wills have several names, such as healthcare directives, instruction directives and declarations. So, you may see it under various titles, but its purpose remains the same. A living will is typically a written statement that ensures any medical or healthcare-related decisions you’ve made are carried out. It only comes into play when or if you can’t advocate for yourself or vocalize those wishes.

For example, you may suffer physical trauma or have a degenerative disease like Alzheimer’s. Both of these situations can lead to lost brain activity and incapacitation. So, you’ll need something in place beforehand that protects your choices regarding long-term or end-of-life medical care. Your living will might cover some decisions, including resuscitation, feeding tubes, assisted breathing and other life-prolonging measures. It may also be possible to put in instructions based on your religious or philosophical beliefs.

Since a living will only comes into play while you’re alive (but incapacitated), it ends when you die.

What Is a Power of Attorney?

Like a living will, a power of attorney (POA) is another important document that protects your interests when you cannot. However, it uses a different method to accomplish that. A power of attorney authorizes a trusted individual that you (the principal or grantor) have chosen to make decisions on your behalf. Although you may also see them with titles like proxy, surrogate and attorney-in-fact, this person is often called the agent.

Essentially, a power of attorney does not include a written guide on your preferred care but picks someone to make those choices when they arise. However, unlike a living will, a POA comes in more than one form.

Click Your State to Get Matched With Financial Advisors That Serve Your Area

Choose your state and answer some questions to get matched with up to three fiduciary advisors that serve your area.

Living Will vs. Power of Attorney at a Glance

A living will and healthcare power of attorney can both provide direction when you are unable to make or communicate healthcare decisions, but they work differently. A living will records your instructions for certain types of medical care, while a healthcare power of attorney names someone to make authorized healthcare decisions on your behalf. Depending on state law, these functions may be established through separate documents or combined in an advance healthcare directive.

	Living Will	Healthcare Power of Attorney
Primary purpose	Records your preferences for certain medical treatments and end-of-life care	Names an agent to make healthcare decisions on your behalf
Who makes decisions?	Your written instructions provide direction about covered medical decisions	An agent you designate makes authorized healthcare decisions
When does it apply?	Generally when you are unable to make or communicate certain healthcare decisions and other conditions specified by the document or state law are met	Depends on the document and state law, but commonly provides authority when you cannot make healthcare decisions yourself
Types of decisions covered	May address resuscitation, life-sustaining treatment, artificial nutrition and hydration and other healthcare preferences	May authorize an agent to consent to or decline treatment, communicate with healthcare providers and make other permitted medical decisions
Can it address an unexpected medical situation?	Only to the extent that your written instructions apply to the situation	An agent may be able to make authorized decisions about circumstances not specifically addressed in a living will
Does it give someone control over your finances?	No	No. Financial authority generally requires a financial power of attorney or other legal authority
Can you have both?	Yes	Yes
Does it replace a last will and testament?	No	No
Do requirements vary by state?	Yes	Yes

A living will and healthcare power of attorney therefore aren’t necessarily alternatives. Having both may allow written instructions to guide your medical care while giving a trusted person authority to address healthcare decisions that weren’t specifically anticipated. However, document names, requirements and the scope of an agent’s authority vary by state.

Other Types of Powers of Attorney

A general power of attorney can have a broad range of power depending on your needs. For example, if you leave the country for an extended period, but you have business ventures or investments to take care of, you might give someone power of attorney over them. Specific situations might call for a specialized version of the document. You can alter when the document takes effect if you make it a durable or springing power of attorney.

A durable POA activates the minute you sign the document. After that, the agent assumes his or her position and retains it, even if you become incapacitated, until your death. In contrast, a springing POA only takes effect after you can longer advocate for yourself.

On top of activation, you can also shift the intent by drafting a power of attorney in financial situations or a power of attorney for healthcare. Either way, the agent makes decisions on your behalf. A financially focused POA can allow someone to pay bills, operate your business or even move assets, but they always have to act in your best interest.

Naturally, a POA for healthcare handles your medical care. Their duties can include accessing medical records, deciding course of care and dealing with the employment of your doctor or medical care professionals. If you are considering a power of attorney for healthcare, it might be worthwhile to pursue a financial one as well. That way, your executor can access capital and use it to improve your quality of life.

It’s important to note that you can revoke your POA at any point; you just have to inform your attorney-in-fact and address the document. You may have to amend it or destroy it altogether, depending on your plans.

Living Will vs. Power of Attorney: Which One Do You Need?

A living will preserves your wishes in writing, while a POA empowers a person to make those decisions. Which one you need depends on your situation.

Keep in mind that each state has different rules regarding estate planning. You may find that you live in a state like Pennsylvania, which uses a document known as an advance healthcare directive. This document combines a living will and durable power of attorney for healthcare, negating the need to choose between the two. It’s also possible to determine your state’s specific requirements to make your living will or power of attorney valid.

It can be challenging to navigate this alone, so speak to an estate planner who can help you ensure your documents are legitimate. They can create a custom directive suited to your needs, which will help you avoid these issues from the get-go.

How to Choose an Agent

Generally, people choose their spouse, a trusted friend or a knowledgeable family member to act as their agent. However, you want to make sure this individual will do right by you and can handle difficult decisions. End-of-life care is an emotional topic for family members, and it can stir disagreement. So, choose an agent who will ensure your wishes are kept even amidst arguments.

Speak with your chosen executor early on. Talk with him or her about your wishes before and even after you put them into writing. The person should also receive a copy of your power of attorney once it’s written and know the location you keep yours in, which should be a secure location like a safety deposit box. You may want to consider bringing a copy to your physician and other family members, like a spouse, as well.

Bottom Line

A living will and healthcare power of attorney address different parts of advance healthcare planning. A living will records your preferences for certain medical treatments and end-of-life care, while a healthcare power of attorney names an agent who can make authorized healthcare decisions when you cannot. Having both may allow your written instructions to guide your agent while giving that person authority to address circumstances your living will doesn’t specifically cover. However, document names, requirements and the authority they provide vary by state, and some states combine these functions in an advance healthcare directive. Reviewing your state’s requirements and keeping your documents accessible to the appropriate people can help make your wishes easier to identify and follow.

Estate Planning Tips

Even though you may not need a power of attorney now, don’t wait to make a financial plan. That’s where a financial advisor can offer expert advice. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you take the path of a power of attorney, your agent might have to make financial decisions for you. That includes choices for your retirement accounts and 401(k). Use our free 401(k) calculator to estimate how much money your account will have by the time you retire.