Free guide

Legal papers starter: power of attorney, health care proxy, and HIPAA release

These papers let someone your loved one trusts help them when they cannot act alone. Each one does a different job.

Short answer
A financial power of attorney covers money and property, a health care proxy covers medical decisions, and a HIPAA release only lets providers share health information. Your loved one must have capacity to sign them, and if it is too late, guardianship through the court may be needed, with rules that vary by state.

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The three papers, in plain words

Financial power of attorney

Names an agent who can handle money and property, such as paying bills or talking with the bank. A durable power of attorney usually keeps working if your loved one loses capacity. The agent must act in your loved one's interest and keep good records. The CFPB has free guides for agents.

Health care proxy or health care power of attorney

Names someone to make medical decisions if your loved one cannot. It is often paired with a living will or advance directive that records their wishes. Names and forms differ by state.

HIPAA release

Lets doctors and health plans share health information with the people named. It does not let anyone make decisions. Even without one, HHS explains that providers may share information with family involved in care in some situations, but a release makes it clearer.

Before you meet an attorney

Talk with your loved one about who they trust for money and for health decisions. It can be different people.
Ask an elder law attorney licensed in their state which forms apply and how they must be signed and witnessed.
Ask where originals will be kept and who gets copies, such as banks and doctors.
Record the location in the Where is everything binder.

What if it is too late?

A person must have capacity to sign these papers. If your loved one can no longer understand and sign them, a court process called guardianship or conservatorship may be the path, and the name and steps vary by state. It takes time, so talk with an elder law attorney licensed in their state as soon as you can. For benefits, Social Security and the VA have their own ways to name someone to manage payments.

Guardianship is usually a last resort because it can remove a person's rights. Ask the attorney about less restrictive options first, such as supported decision-making or a limited guardianship.

Easy-to-miss details

A power of attorney ends at death. After that, only an executor or administrator appointed by the probate court can act for the estate.
An agent must keep the person's money separate from their own and keep records. The CFPB guides for agents explain this.
A HIPAA release lets providers share information but does not let anyone make decisions. Bring copies to each doctor's office.
Beneficiary designations and payable on death or transfer on death accounts usually pass outside the will, so review them along with the will.

Questions to bring to the attorney

Which documents do you recommend for our situation, and why?
Does our state have its own forms?
What happens if my loved one later lives in another state?
What does this cost, and what is included?

Common questions

What is the difference between a power of attorney and a health care proxy?

A financial power of attorney covers money and property. A health care proxy covers medical decisions. A HIPAA release only lets providers share information. Many families need all three.

What if my loved one already has dementia?

If they still have capacity to understand and sign, it may not be too late. An elder law attorney licensed in their state can assess this. If not, guardianship or conservatorship may be needed, and rules vary by state.

Do these papers work in every state?

Many states honor documents signed elsewhere, but forms and rules differ. Ask an attorney licensed where your loved one lives now.

Rules vary by state. Check with your state agency or a licensed professional where your loved one lives.

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Official resources and further reading

Links go to public resources. Kinhaven is not affiliated with them.