Durable Power of Attorney vs Healthcare Proxy: What’s the Difference and Do I Need Both?

TLDR — Quick Answer

• A durable power of attorney (POA) lets someone handle your money and legal affairs if you can’t.
• A healthcare proxy / healthcare agent makes medical decisions if you can’t.
• Many adults benefit from having both, especially if they own property, have kids, or would not want a court making these choices by default.

HeirLight helps you think through both roles, along with your will and advance healthcare directive, in one guided experience. You then print and sign according to your state’s rules.

1. What is a Durable Power of Attorney?

A durable power of attorney is a legal document where you (the “principal”) give someone else (the “agent” or “attorney‑in‑fact”) authority to handle financial and legal matters for you.

Depending on how it’s written, your agent may be able to:

• Pay bills and manage bank accounts
• Sign checks and handle everyday money tasks
• Deal with insurance companies or government benefits
• Manage investments or real estate
• File taxes or handle certain legal paperwork

“Durable” means it stays in effect if you become incapacitated (for example, after a stroke or serious accident), unless you revoke it beforehand.

Some POAs are “springing,” meaning they only take effect if a specific event happens (often when a doctor certifies you’re incapacitated). Others are effective as soon as you sign them.

2. What is a Healthcare Proxy / Healthcare Agent?

A healthcare proxy, healthcare agent, or medical power of attorney is the person you authorize to make medical decisions if you’re unable to speak or decide for yourself.

They may be asked to:

• Approve or decline treatments or procedures
• Decide about life support, resuscitation, or feeding tubes (often guided by your advance directive)
• Choose hospitals, doctors, or care facilities
• Weigh risks and benefits when the path is not clear

Your healthcare proxy typically works hand‑in‑hand with your advance healthcare directive (living will), which explains your preferences about treatments and end‑of‑life care.

3. Key Differences at a Glance

Durable Power of Attorney (Financial)

• Focus: money, property, and legal affairs
• Used for: paying bills, managing accounts, signing documents, dealing with institutions
• Who uses it: banks, financial institutions, government agencies, lawyers

Healthcare Proxy / Healthcare Agent (Medical)

• Focus: medical decisions and care
• Used for: treatment choices, surgeries, life support, pain management, care settings
• Who uses it: doctors, hospitals, clinics

You can choose the same person for both roles, or different people depending on their strengths.

4. Do I really need both?

You don’t have to, but they solve different problems:

You probably need a healthcare proxy if:

• You’d want a specific person (spouse, partner, close friend) making medical decisions
• You have strong feelings about treatment, life support, or quality of life
• You don’t want relatives arguing or guessing in a crisis

You probably need a durable power of attorney if:

• You have income, bills, or a mortgage in your name
• You own investment or retirement accounts
• You’d want someone to manage finances if you’re in the hospital, in rehab, or living with long‑term illness

Having both documents in place often means:

• Your healthcare agent focuses on your health and care
• Your financial agent keeps your life running in the background

Without these, your family may need a court to appoint a guardian or conservator, which can be slow, stressful, and expensive.

5. Who should you choose for each role?

Healthcare proxy:

• Calm in a crisis
• Will follow your wishes, even if they’d choose differently for themselves
• Comfortable talking with doctors and asking questions
• Emotionally close enough to advocate for you

Durable POA (financial):

• Extremely trustworthy
• Organized with money and paperwork
• Detail‑oriented and responsive
• Able to manage tasks over weeks or months if needed

Some people choose:

• Spouse or partner for both
• Spouse as healthcare proxy, financially savvy sibling or friend as POA
• Adult child as healthcare agent, professional or co‑agent for finances

There is no single right answer; the goal is to match people to the roles they’re best at.

6. How these documents work with your will

A common planning “stack” for a simple estate is:

• Will – controls what happens to your property after you die
• Advance healthcare directive + healthcare proxy – guides and authorizes medical decisions while you’re alive but unable to decide
• Durable power of attorney – lets someone manage money and legal matters while you’re alive but unable to act

Your will only speaks after death. Powers of attorney and healthcare proxies protect you during life.

7. Signing and updating

Each state has its own rules for:

• Required language or official forms
• Witnesses and/or notarization
• When a document becomes effective

General best practices:

• Use your state’s approved or recommended forms where possible
• Sign when you clearly understand what you’re signing
• Follow all witness and notarization instructions carefully
• Review every few years or after major life changes (marriage, divorce, move, diagnosis)

HeirLight cannot give legal advice, but it can help you think through these roles and generate documents based on your answers, which you then sign according to your state’s requirements.

Create Your Will, Healthcare Directive, and Power of Attorney with HeirLight

If you’ve only thought about a will, you might be missing important “while I’m alive” protections.

HeirLight helps you:

• Create a simple will
• Name a healthcare proxy and document your medical wishes
• Set up a durable power of attorney for finances

All in one guided, plain‑English experience. You start for $0, work through key decisions, and then print and sign your documents according to your state’s rules.

Important: HeirLight is not a law firm and does not provide legal, tax, financial, or medical advice. Our tools are educational and self‑help in nature. For complex medical or legal situations, you should consult licensed professionals.

Putting these pieces in place is not about expecting the worst. It’s about giving your future self and your family clear, calm instructions for the times when life doesn’t go to plan.