FPOA vs. HCPA: Key Differences Explained
The Financial Power of Attorney (FPOA) and Healthcare Power of Attorney (HCPA) are essential legal documents in your estate plan, each serving unique purposes and covering different aspects of your life.
In this blog post, we’ll examine the key differences between them under Nevada law, helping you protect your interests and ensure your wishes are respected in both areas.
If you want to understand who should handle your financial and healthcare matters when you can’t, keep reading.
| FPOA | HCPA | |
|---|---|---|
| Purpose | Allows a designated person to manage your financial affairs. | Allows a designated person to make healthcare decisions on your behalf. |
| Scope of Authority | Covers financial transactions, asset management, real estate, taxes, and investments. | Covers medical treatment decisions, end-of-life care, and healthcare provider interactions. |
| Activation | Can be effective immediately or upon incapacitation. | Usually activated when the individual is incapacitated or unable to make decisions. |
| Agent Responsibilities | Paying bills, managing investments, filing taxes, buying/selling property, etc. | Deciding on medical treatments, surgeries, and healthcare providers |
| Legal Requirements | Often requires notarization and witnesses. | Often requires notarization and healthcare-specific witness requirements. |
| Revocation | Can be revoked by the principal at any time, as long as they are competent | Can be revoked by the principal at any time, as long as they are competent |
| Impact on Estate Planning | Manages financial assets and decisions, protecting financial well-being. | Ensures medical wishes are followed, providing peace of mind regarding healthcare |
| Types | General FPOA (broad authority) Limited FPOA (specific transactions) | Durable HCPA (remains in effect if incapacitated) Non-durable HCPA (temporary) |
Purpose and Focus
FPOA is primarily concerned with financial matters. It grants someone the authority to manage your finances, handle transactions, and make monetary decisions on your behalf. This is essential if you’re unable to handle your financial responsibilities due to illness, absence, or incapacity.
HCPA focuses on medical decisions. It allows someone to make healthcare-related choices for you if you’re unable to communicate your wishes. This includes decisions about treatments, surgeries, medications, and other aspects of your healthcare.
Scope of Authority
FPOA covers areas such as:
HCPA involves:
Activation
FPOA can be structured to take effect immediately upon signing or only if you become incapacitated, depending on your preference. An “immediate” FPOA allows the agent to act right away, while a “springing” FPOA only activates under certain conditions, such as medical certification of incapacitation.
HCPA typically only becomes active when you are deemed unable to make your own healthcare decisions, such as being unconscious, mentally incapacitated, or otherwise unable to communicate your wishes.
Agent Responsibilities
FPOA agents, known as “attorneys-in-fact” or “agents,” handle all financial tasks and are expected to act in the best financial interests of the principal (the person who created the FPOA). They must maintain accurate records and can be held accountable for their actions.
HCPA agents, or “healthcare proxies,” must make medical decisions based on the principal’s wishes, values, and beliefs. They should consult healthcare professionals and follow any specific instructions provided in the healthcare directive or advance healthcare plan.
Revocation and Changes
Both FPOA and HCPA can be revoked or changed at any time by the principal, provided they are still competent.
Nevada-Specific Regulations
Both FPOA and HCPA are durable by default in Nevada, meaning it remains effective even if the principal becomes incapacitated.
Nevada requires FPOA and HCPA documents to be notarized, adding legal weight and protection against potential disputes.
While Nevada adopts the Uniform Power of Attorney Act, it tailors certain aspects to fit state-specific needs, such as specifying durable and non-durable powers and clarifying agent authority limit.
Nevada’s inclusion of specific HIPAA language in the HCPA is a proactive measure to ensure agents have the necessary access to medical information, something not universally mandated in all states.
Nevada’s provision of statutory forms for both FPOA and HCPA simplifies the process for residents, ensuring compliance with state laws and reducing the risk of errors in document preparation.
Durability
In Nevada, both FPOA and HCPA are “durable,” meaning they remain in effect even if you become incapacitated. This feature is particularly important for those who wish to ensure their affairs are managed continuously without disruption.
How to Add a FPOA and HPCA to Your Nevada Estate Plan
Both a Financial Power of Attorney (FPOA) and a Healthcare Power of Attorney (HCPA) are essential tools for planning your future. They provide peace of mind by ensuring that trusted individuals can manage your affairs according to your wishes.
Smith Legal Group ready to help you create these documents, ensuring they align with Nevada’s laws and your personal preferences.
Contact our Henderson, NV office at 702-410-5001 to request a free consultation and get started.
Disclaimer: The information in this blog post is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this blog post should be construed as legal advice. No reader of this post should act or refrain from acting on the basis of any information included in this blog post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue.