Power of Attorney vs Health Care Proxy vs Living Will

The short answer

A financial power of attorney names someone to handle money matters. A health care proxy (also called a durable power of attorney for health care) names someone to make medical decisions. A living will writes down the medical treatment your parent would or would not want. Most families need all three, because each covers a different gap. The proxy and the living will are both “advance directives”; the financial power of attorney is not.

This guide explains each document in plain language, how they fit together, and what to ask your parent so the right people can act when it matters. It is general educational information, not legal advice. Rules and forms differ by state, so check your parent’s state form or talk with an attorney before signing anything.

Side-by-side comparison

	Financial power of attorney	Health care proxy	Living will
What it does	Names a person (the agent) to manage money and property	Names a person to make health care decisions	States which treatments your parent would or would not want
Other names	Durable power of attorney for finances	Durable power of attorney for health care, medical power of attorney, health care agent, surrogate	Treatment directive; part of an advance directive
Covers	Bills, bank accounts, taxes, insurance, property	Any medical decision, including ones nobody planned for	Specific situations, such as life support or tube feeding
Is it an advance directive?	No	Yes	Yes
Typical use	Paying the electric bill while Mom is in rehab	Talking with the hospital team after Dad’s stroke	Telling the doctors what Mom said she would want

One way to remember it: two of the documents name a person (one for money, one for health), and one records your parent’s wishes.

What is a financial power of attorney?

A financial power of attorney is a legal document in which your parent (the “principal”) names someone they trust (the “agent”) to handle money matters for them. The National Institute on Aging describes a durable power of attorney for finances as a document that names someone to make financial decisions for you when you are unable to.

The word durable matters. It means the document keeps working if your parent becomes unable to make decisions, which is exactly when the family needs it. A power of attorney that is not durable may stop working at that moment.

What the agent can do depends on what the document says. It can be broad (all financial matters) or narrow (selling one house). Some take effect as soon as they are signed; others only after a doctor confirms your parent can no longer manage. In general, a power of attorney stops working when the person dies. After that, the executor named in the will takes over.

If you are the agent, you must act in your parent’s interest, keep their money separate from yours and keep records. The Consumer Financial Protection Bureau publishes free plain-language guides, Managing Someone Else’s Money, that walk agents through these duties. If you are stepping in to help with bills, our guide to organizing an aging parent’s information shows how to list every account in one place first.

What is a health care proxy?

A health care proxy is the person your parent chooses to make medical decisions for them if they cannot communicate their own wishes. The document that names that person is usually called a durable power of attorney for health care, and some states call it a medical power of attorney or health care agent form. According to the National Institute on Aging, the proxy is also known as a representative, surrogate or agent, and should be someone familiar with your parent’s values and wishes.

The proxy only steps in when your parent cannot speak for themselves, for example after a stroke, during surgery or in late-stage dementia. While your parent can still communicate, they make their own decisions, even if you disagree with them.

A proxy is useful because no document can predict everything. A serious car accident or a sudden infection raises questions that a form never mentions. A trusted person who knows your parent can weigh the doctor’s options against what your parent would want.

Who makes a good proxy?

Someone who will follow your parent’s wishes, even when they would choose differently.
Someone who stays calm and can ask doctors hard questions.
Someone who can be reached quickly. Living nearby helps but is not required.
A backup person, in case the first choice is unavailable.

Naming one decision-maker is usually clearer than asking siblings to agree. Families who want to talk this through can use our list of questions to ask aging parents before a crisis.

What is a living will?

A living will is a written statement of the medical care your parent would and would not want if they cannot decide for themselves. The National Institute on Aging describes it as a legal document that tells doctors how you want to be treated if you cannot make your own decisions about emergency treatment. It can cover treatments such as CPR, breathing machines, tube feeding, dialysis and comfort care, and under which conditions each choice applies.

A living will does not name anyone. It speaks for your parent in their own words. That is why it works best alongside a health care proxy: the living will says what, and the proxy is the person who makes sure it is honored and handles anything the paper does not cover.

The National Institute on Aging notes that an advance directive is legally recognized but not legally binding: doctors and the proxy will do their best to respect it, but there can be situations where it cannot be followed exactly. Talking through the “why” behind your parent’s choices helps everyone apply them sensibly.

Does my parent need all three?

For most older adults, yes. Each document fills a gap the others leave open:

Health care proxy without a living will: the proxy has authority but may have to guess what your parent wanted.
Living will without a proxy: doctors have written wishes but no one with clear authority to speak for your parent about situations the form does not mention.
Health documents without a financial power of attorney: someone can talk to the hospital, but nobody may be able to pay the rent, the mortgage or the nursing home bill.

Some states combine the proxy and living will into one “advance directive” form. That is fine; what matters is that both parts are filled in. A will is a separate document again: it only takes effect after death, while these three are for while your parent is alive. Our list of important documents to leave for your family shows how they all fit together.

What about DNR orders and POLST forms?

These are medical orders, not legal documents your parent writes alone. A doctor signs them after talking with your parent or their proxy.

Do not resuscitate (DNR) order: goes in the medical chart and tells staff not to attempt CPR if the heart and breathing stop.
POLST or MOLST form (physician or medical orders for life-sustaining treatment): gives instructions that health care professionals, including paramedics, can act on right away in an emergency. They are usually suggested for people who are seriously ill or frail.

If your parent has one, keep it where emergency crews will see it and note it on their emergency information sheet.

What happens if there are no documents?

If your parent cannot decide for themselves and has not named a proxy, state law decides who can make medical decisions. Each state has its own rules: many look first to a spouse or adult children, some allow a close friend who knows your parent’s values, and in some cases a doctor may be assigned. Without a financial power of attorney, families may have to ask a court to appoint a guardian or conservator before they can manage accounts. That can take time and money during an already hard period.

If you are already in the middle of an emergency, start with our guide on what to do in a parent’s health emergency, and ask the hospital social worker how decisions are being made.

How do you get the forms?

The National Institute on Aging says advance directives can be done for little or no cost, and many states have free forms. Places to look:

Your parent’s State Attorney General’s office or state health department website.
The local Area Agency on Aging. Find it through the Eldercare Locator at 1-800-677-1116.
Their doctor or hospital. Medicare Part B covers voluntary advance care planning as part of the “Welcome to Medicare” visit and the yearly Wellness visit. According to Medicare.gov, your parent pays nothing for it during those visits if the provider accepts assignment.
An elder law attorney, state legal aid office or bar association, especially for the financial power of attorney, large estates, blended families or if capacity is already in question.

Signing rules (witnesses, notary) differ by state, and the form must follow the rules of the state where your parent lives. After signing, the NIA suggests making copies and giving them to the health care proxy, doctors and lawyer; some states also run registries. Review the documents at least once a year and after big changes such as a move, a divorce or a new diagnosis.

How to bring it up with your parent

Most parents are more open to this when it is about their control, not your worry. Try one of these:

“Mom, I want to make sure that if you’re ever in the hospital, the doctors do what you want, not what I guess. Who would you want to speak for you?”

“Dad, I’m doing my own paperwork this year. Have you got a power of attorney? If not, can we look at the state form together?”

“You don’t have to tell me what’s in it. I just need to know it exists and where it’s kept.”

If the answer is “not now,” leave the door open and try again after a doctor visit. Our guide on what to do when an elderly parent refuses help has more ways to keep your parent in charge of the conversation. For a deeper walk-through of choosing and briefing a health care agent, the Medical Power of Attorney organizer gives your family fill-in pages for the conversation and the decisions.

Checklist: questions to ask about each document

Legal documents check for: ____________________

☐ Financial power of attorney? Agent: ____________ Backup: ____________
☐ Is it durable? ☐ Effective now or only if incapacitated? ____________
☐ Health care proxy named? Name/phone: ____________ Backup: ____________
☐ Living will or advance directive signed? Date: __________
☐ DNR or POLST/MOLST on file? Where: ____________
☐ Will exists? Executor: ____________
☐ Where are the originals kept? ________________________
☐ Who has copies (proxy, doctor, hospital, lawyer)? ________________________
☐ Does the agent/proxy know they were chosen? ☐ Yes ☐ No
☐ Last reviewed: __________ Next review: __________

Keep this page with your parent’s other records. For the bigger picture, see how to get your affairs in order and all our guides to organizing family information.

Frequently asked questions

Is a health care proxy the same as a power of attorney?

A health care proxy is named in a durable power of attorney for health care, so the terms are often used together. It is different from a financial power of attorney, which covers money and property, not medical decisions. Your parent can name the same person for both or different people.

Which is better, a living will or a health care proxy?

Neither replaces the other. A living will records which treatments your parent would or would not want; a health care proxy names a person to make decisions, including ones the living will does not cover. Most people benefit from having both.

When does a power of attorney take effect?

It depends on what the document says and on state law. Some take effect as soon as they are signed; others only when a doctor confirms your parent can no longer decide. Health care proxies normally act only when your parent cannot communicate their own wishes.

Does a power of attorney end at death?

Yes, in general a power of attorney stops working when the person dies. After death, the executor named in the will, or a person appointed by the court, handles the estate.

Do you need a lawyer to make a living will or health care proxy?

Not always. The National Institute on Aging notes that many states have free advance directive forms. A lawyer is worth it for financial powers of attorney, complicated family or money situations, or if there is any question about your parent’s ability to decide.

Sources and further reading

Facts on this page were checked on these official sources on 3 November 2026:

This article is general educational information, not legal advice. Laws and forms vary by state; for decisions about your family, speak with a licensed attorney in your parent’s state.