An Advance Health Care Directive allows you to specify to what extent you would like to receive life-sustaining treatment if you are terminally ill or become incapacited. This document also allows you to appoint an agent, who will make health care decisions on your behalf in the event that you become terminally ill or incapacitated.
A Power of Attorney allows you to choose someone (your agent) to act on your behalf, generally concerning financial matters, when you are incapacitated, or otherwise unable to do so. For example, if you are out of the country on vacation, your agent would be able to write checks from your bank account and pay your bills while you are gone. Your agent could also act on your behalf if a physician determines that you lack the ability to make financial decisions on your own.
Advance Health Care Directives and Powers of Attorney are essential parts of any estate plan.