A Health Care Proxy is a legal document that allows an individual to appoint someone else to make medical decisions on their behalf if they become unable to do so.
A Health Care Proxy is a legal instrument in which an individual (the principal) designates another person (the agent or proxy) to make health care decisions on their behalf if they become incapacitated or unable to make those decisions themselves. It ensures that the principal’s wishes regarding medical treatment and care are respected, even when they cannot communicate those preferences. This document is critical in scenarios where urgent medical decisions need to be made and the individual cannot participate due to illness or unconsciousness. In financial or wealth management contexts, Health Care Proxies are essential components of comprehensive estate and succession planning. They complement other legal documents like Living Wills and Powers of Attorney by focusing specifically on health care decisions rather than financial or legal matters. The appointed proxy has the authority to consent to or refuse medical treatments, access medical records, and make end-of-life care decisions consistent with the principal’s preferences and best interests.
In wealth management and family office governance, establishing a clear Health Care Proxy helps avoid potential conflicts or delays in medical decision-making during critical times. It provides peace of mind to clients, knowing there is a trusted individual empowered to uphold their health care wishes, aligning with broader legacy and succession objectives. Furthermore, having a Health Care Proxy in place can reduce fiduciary and legal risks by clearly defining who holds decision-making authority in medical matters, which indirectly influences financial planning and asset management during periods of incapacity. From a tax and estate perspective, while the Health Care Proxy itself does not directly impact taxation, effective use of such proxies supports coordinated estate and health care planning strategies. This ensures that clients' assets are preserved and managed according to their wishes with appropriate support during health crises, avoiding unnecessary financial burdens that might arise from prolonged incapacitation without designated decision-makers.
A high-net-worth individual creates a Health Care Proxy appointing a trusted family member as the agent to make medical decisions if they become incapacitated. Later, if the individual is hospitalized and unable to communicate, the appointed proxy works with medical professionals to decide on treatments consistent with the individual’s previously expressed wishes, ensuring prompt and aligned medical care.
Voting Proxy
A Voting Proxy allows a person to delegate their voting rights in corporate shareholder meetings to another individual, differing from a Health Care Proxy which concerns medical decisions rather than voting rights.
What happens if I don’t have a Health Care Proxy?
Without a Health Care Proxy, medical decisions may be made by default state laws or require court intervention, which can delay care and may not align with your personal wishes.
Can I appoint more than one person as my Health Care Proxy?
Yes, some jurisdictions allow appointing alternate proxies or multiple agents, but it’s important to specify decision-making authority clearly to avoid conflicts.
Does a Health Care Proxy cover financial decisions as well?
No, a Health Care Proxy only authorizes medical decision-making. Financial matters require a separate document, such as a Power of Attorney.
