Power of Attorney: Just as Important as a Will

Planning for Life—Not Just Death, Under Oregon Law

When most people think about estate planning, they focus on what happens after they die—who gets the house, the savings, or the family heirlooms. But a truly effective estate plan also protects you during your lifetime, especially if you become injured, ill, or develop dementia (termed “financially incapable”).

That’s where a Power of Attorney comes in—and under Oregon law, it’s just as essential as having a will.

• Effective when you lose capacity.
• Names a trusted person who understands your values and will act in your best interest.
• Allows your agent to take necessary actions to protect your health and finances.
• Part of a coordinated estate plan, including a will, any trusts, and beneficiary designations.

Why It’s Just as Important as a Will

Last Will and Testament	Power of Attorney
Takes effect after death	Takes effect during your life, but only when you are unable to manage your finances
Directs how assets are distributed	Allows trusted individuals to make financial decisions and manage your accounts
Handled through probate court	Avoids court involvement when you are living but vulnerable

Your Will cannot help you if you’re incapacitated. That’s why a durable power of attorney and an Oregon Advance Directive are indispensable.

What Is a Power of Attorney?

In Oregon, a Power of Attorney is a legal document that authorizes someone you trust—called your agent or attorney-in-fact—to make decisions and act on your behalf. Allows your agent to manage your finances if you become incapacitated. This can include paying bills, managing investments, accessing bank accounts, handling real estate, or filing taxes.

When creating a Power of Attorney, one of the most important decisions you’ll make is when it becomes effective.

1. Durable Power of Attorney. Effective immediately, this form of Power of Attorney stays in effect even if you become incapacitated. Generally only appropriate for married couples and committed partners.
   • Pro: Your agent can step in right away—no delays or additional paperwork.
   • Considerations:
     • Your agent has authority to act even while you’re still capable.
     • You must deeply trust the person you appoint.
       
2. Springing Power of Attorney. This form of Power of Attorney only becomes effective if you become incapacitated and is generally appropriate when appointing children or friends to assist you when you become financially incapable:
   • Pros:
     • You retain full control unless something happens to you.
     • Provides more protection when you are independent and do not need assistance managing your finances.
   • Considerations: Could delay urgent decisions because institutions may require written proof of incapacity (from your physician).
     
3. Oregon Advance Directive (aka “Health Care Power of Attorney”)
   • Similar to a “Health Care Power of Attorney,” the Advance Directive is a form specific to Oregon that allows your health care representative to make medical decisions on your behalf, including end-of-life care, if you are unable to speak for yourself.
   • The Oregon Advance Directive (”OAD”) allows you to appoint a healthcare representative and outline your wishes for medical treatment and end-of-life care. Catalyst provides a detailed addendum to accompany the Oregon Advance Directive, which allows you to outline additional requests not included in the form, such as level of care you desire if you develop advanced dementia.
   • Oregon’s standardized Advance Directive form was most recently updated in September 2021.
     • You may be interested in executing a new Oregon Advance Directive if you have specific information to share with your healthcare representative and the healthcare providers about your values and beliefs, or if you wish to include additional specific instructions regarding end-of-life care.
     • If you have previously executed an Oregon Advance Directive, there is no requirement to update it; it remains effective.

Download a Free Oregon Advance Directive Form from the Oregon Health Authority.

Why a POA Matters

If you become incapacitated without a valid power of attorney or advance directive:

• Your loved ones may need to petition an Oregon court to establish a conservatorship or guardianship — a costly, public, and time-consuming process.
• You may be assigned a court-appointed decision-maker who doesn’t know your values or preferences.
• It can delay care, disrupt financial management, and place an emotional and legal burden on your family.

What Makes a Good POA in Oregon?

• It must comply with Oregon Revised Statutes Chapter 127 & 130.
• It clearly names an agent you trust—and successor agents in case the first cannot serve.
• It grants authority specific enough to be useful, but broad enough to avoid court involvement.
• It’s properly signed, dated, and notarized or witnessed, as required under Oregon law.
• It is reviewed and updated at least every 3–5 years, or after major life events.

Your Next Steps

If your estate plan doesn’t include an Oregon-compliant Power of Attorney and Oregon Advance Directive, it is time to take action.

If your documents predate Oregon’s 2021 form update, it is time to review your choices to determine if you wish to make updates.

Without a Power of Attorney, your family may face court intervention, delays, and uncertainty when you are incapacitated. On the other hand, establishing a POA while you are still healthy, will provide your agent with the empowerment needed to act quickly, confidently, and in accordance with your values.

Review or update your Power of Attorney documents. To make sure your Oregon estate plan is complete, current, and ready to protect you in life—not just after death, call today to schedule an appointment with an attorney.