Why Married People Should Invest in Powers of Attorney

Introduction: POAs are a Central Part of Estate Planning for Marylanders

When most people think of estate planning, their thoughts naturally gravitate to wills and trusts. While wills and trusts are highly important estate planning instruments, powers of attorney (POAs) should be counted as just as important. We’ve discussed POAs in the past, but what we haven’t touched on is the benefits of these tools for married people.  

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Many laypeople in Maryland mistakenly assume that marriage confers the same powers as those conferred by POAs, but this is not the case. Legally, a spouse doesn’t have the same authorities as those contained within a POA. A spouse cannot necessarily make medical or healthcare decisions on behalf of his or her spouse; furthermore, if a spouse were to become incapacitated, the other spouse cannot automatically gain the financial decision making powers conferred by a financial POA.  

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Spouses do gain certain powers via marriage, of course. In Maryland law, for instance, spouses generally are entitled to half of all “marital property,” which is generally any property acquired during the course of the marriage. This power in inbuilt into the marriage itself; it is the “default” practice under the law, and so even without any other contractual arrangements the presumption is that each spouse owns half of all marital property.  

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Let’s look at some of the specific advantages of creating financial and medical POAs for married people. Again, married people may assume that these advantages are automatically granted by the marriage, but this isn’t true.

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The Importance of a Financial POA for Married People

Although marriage has certain financial implications, spouses still have a degree of financial autonomy in the marriage. Spouses can still make independent investment decisions with marital funds, for instance, provided that these decisions aren’t reckless or involve a deliberate attempt to deprive the other spouse. In many marriages, however, spouses have differing levels of financial or investment expertise, and so a financial POA may be beneficial when one spouse has the ability to make superior financial or investment decisions for both spouses. Furthermore, in cases in which one spouse becomes incapacitated, a financial POA may simply be necessary to ensure that the marital estate is well advised and taken care of.  

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The Importance of a Healthcare / Medical POA for Married People

One of the unfortunate realities of life is that, sometimes, accidents happen, and when accidents happen they can leave a person in an incapacitated state. When a spouse becomes injured, incapacitated, or seriously ill, a healthcare or medical power of attorney can be highly beneficial. A medical POA can give the other spouse the full legal authority to make complex medical decisions on behalf of the ill or incapacitated spouse. The might involve, among other things, the decision to undergo certain types of surgery as a corrective measure, or the decision to avoid resuscitation in cases of lost consciousness. Whatever the specific circumstances may be, a medical POA can be a highly advantageous instrument, because the ill spouse might not be in a position to make sound decisions, and this decision making power isn’t automatically conferred through the marriage itself.

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Contact the Murphy Law Firm for Additional Information

If you want to know more about the importance of powers of attorney contracts, the details of creating an enforceable POA in Maryland, estate planning in general, or any other related estate planning matter, contact one of the estate planning attorneys at the Murphy Law Firm today by calling 240-222-1187.

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