A power of attorney is a written document that authorizes another person (the “attorney-in-fact”) to act on behalf of an individual to deal with the grantor’s property and financial affairs during the grantor’s lifetime. Such an instrument is important in the event the grantor becomes incapacitated, so that the attorney-in-fact can act in accordance with the terms of the document to access the grantor’s accounts, pay bills, collect checks, change investments, sell or buy property, and make gifts on behalf of the grantor. For example, if the grantor otherwise is required to access funds to pay for medical expenses, then this instrument permits the attorney-in-fact to act on behalf of the grantor to access such needed funds. Typically, the partner is designated as the attorney-in-fact.

The power of attorney can become effective either immediately upon execution or when the grantor becomes disabled. Unless the attorney-in-fact is also the grantor’s personal representative for purposes of Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) or the power of attorney instrument includes an express waiver, he or she would not have access to private medical records. This is a problem that could be easily avoided.