When Should You Choose To Use A Health Care Proxy?
Published Friday, May 24, 2013 at: 7:00 AM EDT
A health care proxy can be a valuable tool in your estate planning kit. But don’t confuse this document with a “living will,” which you might use to try to accomplish the same objectives.
As the name implies, a health care proxy is a legal document that lets you authorize an agent to make medical and health care decisions on your behalf if you’re unable to do so. This can include difficult end-of-life options. The idea is to appoint someone you trust to act the way you would have wanted. Therefore, it’s critical that this person completely knows and understands your feelings.
Health care proxies also may help resolve disputes within families. The agent has sole discretion and makes decisions based on your personal philosophy. Legally, family members who disagree won’t be able to interfere.
Similarly, a living will (recognized in most states) may be used to carry out your wishes. However, with a living will, you spell out instructions in writing, and that may leave room for different interpretations. Instructions such as, “If there is little hope of recovery, I would not want heroic measures taken to preserve my life,” can mean different things to different people. There’s no reliable way of writing a living will to cover every possible medical contingency or viewpoint.
Which do you prefer? Consult an expert to determine your best course of action.
This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.
An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.
Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).
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