Monday, July 27, 2009

Unraveling Powers of Attorney

Recently I challenged readers if they knew about HIPAA PR's in their POA's. Most people didn't know what I was referring to, so here's a Power of Attorney dictionary. I hope this helps you in your decisions about your Power of Attorney.

Here is a list of the abbreviations I used in my Power of Attorney (POA) challenge:

1. POA = Power of Attorney

2. DPOA = Durable Power of Attorney (these are the one's used in estate planning).

3. HIPAA = Health Information Privacy Administration Act

4. HIPAA PR = a HIPAA Personal Representative appointed in your POA.

Having a DPOA is integral to an effective estate plan. Your DPOA helps to avoid issues known as "living probate" where disputes could arise over who your decision makers are and what can be done for you during any period of your incapacity.

So having a HIPAA PR named in your DPOA is one of the more important parts of your estate planning and will help protect you, your family and your money. Make sure your DPOA appoints a HIPAA PR.

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