Living Wills and Powers of Attorney: Planning for Medical and Financial Decisions Before Crisis Hits

Estate planning is about more than simply deciding who gets to inherit what when you pass away. It is about setting things up so that your biggest medical decisions and financial decisions are effectively “already made” when an emergency comes. At The Hunter Law Firm, PLLC, our Natchez estate planning lawyer helps people find peace and security through proactive planning. 

An Overview of Mississippi Law on Advance Health Care Directives and Living Wills

Mississippi law allows competent adults to issue binding instructions governing medical treatment during incapacity. The key statute appears in the Mississippi Uniform Health-Care Decisions Act (Miss. Code Ann. § 41-41-201 et seq). It grants an adult the ability to execute an advance health care directive that controls treatment decisions if the person later loses decision-making capacity.

A living will forms one component of that directive structure. The document records the principal’s instructions regarding life-sustaining procedures when the individual suffers from a terminal condition or permanent unconsciousness. Physicians must comply with the directive once the statutory conditions are satisfied. Notably, the attending physician must determine that the patient lacks capacity for a living will to be applicable. 

Health Care Agent Can Make Medical Decisions During Incapacity

Mississippi law also allows an adult to appoint a health care agent to make medical decisions during periods of incapacity. The law grants a competent person the right to designate an agent who may communicate with physicians and consent to treatment on the principal’s behalf. The appointment becomes effective when the individual lacks the capacity to make informed healthcare decisions. Notably, the authority of the agent can be broad. The agent may authorize medical procedures, consent to hospital admissions, approve medication decisions, and determine whether life-sustaining treatment should continue. 

A person who assumes the role of a health care agent is taking a big responsibility. He or she has a legal duty to act in the best interests of the vulnerable (incapacitated) person who granted them that authority. Mississippi law imposes fiduciary obligations on the appointed agent. That means that as a matter of law, the agent must act in accordance with the principal’s known wishes and medical instructions. If the directive does not address a specific situation, the agent should act in the principal’s best interests based on the available medical information.

Caveat: A trusted person who has been appointed as a health care agent in Mississippi cannot override the instructions in a lawfully created living will. 

Durable Financial Powers of Attorney Govern Financial Authority

Incapacity planning is also about financial planning. Medical directives address healthcare decisions. That means that the financial authority requires a separate legal instrument. Mississippi law recognizes durable powers of attorney that allow a principal to authorize another person to manage financial affairs during incapacity. The relevant statute is the Mississippi Uniform Power of Attorney Act (Miss. Code Ann. § 87-3-101 et seq.) 

A key point to know is that under the law, a durable power of attorney remains effective even after the principal becomes incapacitated. Without this durability provision, the agent’s authority would terminate when the principal loses capacity. The document may grant authority over a wide range of financial matters. The agent may access bank accounts, manage investment portfolios, pay debts, collect income, or handle real estate transactions. The principal determines the scope of authority granted to the agent.

Note: In Mississippi, banks and other financial institutions often rely heavily on properly drafted powers of attorney when an account holder becomes incapacitated. Without the proper documentation in place, family members will often be delayed in accessing important financial information.

Guardianship Proceedings May Be Required When Planning Documents Do Not Exist

Unfortunately, families in Natchez and elsewhere in Mississippi often encounter serious legal problems when no advance directive or power of attorney exists. Once a person loses decision-making capacity, financial and medical decisions still must be made. Without preexisting legal authority, family members may have no lawful ability to act on the incapacitated individual’s behalf. Mississippi law addresses this problem through guardianship and conservatorship proceedings. While it is good news that there is a fallback option, the reality is that guardianship proceedings and conservatorship can be slow, complicated, and potentially expensive. If you have any specific questions or concerns about adult guardianships, an experienced Natchez, MS estate planning attorney can help. 

Best Practice: Coordinated Medical and Financial Planning 

Living wills and durable powers of attorney operate together to create a comprehensive incapacity plan. The medical directive governs healthcare decisions when the individual cannot communicate with physicians. The durable financial power of attorney authorizes an agent to manage financial responsibilities during the same period of incapacity. A coordinated structure becomes particularly important during medical emergencies. It allows for both medical and financial issues to be handled in the most efficient and effective manner. 

How Natchez Estate Planning Attorney Terrence D. Hunter Can Help

Every adult in Mississippi should have a comprehensive estate plan in place. When possible, planning for medical decisions and financial decisions is something that should be done before a crisis actually hits. Our founder and principal attorney, Terrence D. Hunter, provides personalized, solutions-focused guidance and support to clients. It is our goal to help people and families find peace, security, and stability through proactive planning. These issues should be addressed before an emergency actually hits. You can contact us at our Natchez law office to set up a fully confidential, no obligation initial consultation with a top estate planning attorney. 

Contact Our Natchez, MS Estate Planning Lawyer Can Help

At The Hunter Law Firm, PLLC, our Natchez estate planning attorney invests time, resources, and attention to detail into each and every case. If you have any questions about estate planning, we are here to help. Contact us today for a completely confidential initial consultation. Our firm provides estate planning services in Natchez.