Planning for incapacity is one of the most important steps in any Michigan estate plan, yet it is often overlooked until a crisis forces families to act. We regularly meet individuals and families in Troy and Shelby Township who assume that a spouse or adult child will automatically be allowed to manage finances or make medical decisions if something unexpected occurs. Michigan law does not work that way. Without proper legal documents in place, a court may be required to step in, and the person chosen will not necessarily be the individual the family would have selected.

That is why incapacity planning is more than paperwork. It is a safeguard that protects control, reduces stress, and ensures that decisions are made by someone who understands personal wishes and values. Appointing trusted decision-makers through properly drafted Michigan legal documents helps prevent uncertainty, keeps loved ones out of lengthy court processes, and provides peace of mind at every stage of life. We approach incapacity planning with the goal of minimizing complications and strengthening personal protection before a medical or cognitive issue arises.

Why Incapacity Planning Matters Under Michigan Law

In Michigan, incapacity issues are addressed under several statutory frameworks. These laws outline how financial and healthcare decisions must be handled when someone can no longer act independently.

When no advance planning is completed, families may be forced to petition the probate court for a guardianship or conservatorship. Under MCL 700.5301 and MCL 700.5401, these proceedings determine who manages personal care and who controls financial matters. While courts strive to act in a person’s best interests, these procedures can be time-consuming, public, and expensive. More importantly, the court’s choice may not be the individual the family would have preferred.

Through incapacity planning, we help clients designate trusted decision-makers long before these issues arise. These documents are legally recognized, efficient, and allow seamless transitions during medical emergencies, age-related decline, or unexpected conditions.

Durable Powers Of Attorney For Financial Decisions

A Durable Power of Attorney (POA) allows someone to appoint a chosen representative, known as an agent, to manage financial matters if incapacity occurs. In Michigan, a POA remains valid even if the principal becomes incapacitated, as long as it explicitly states that it is “durable.”

A durable POA can authorize an agent to:

• Pay bills and manage accounts
• Handle property and real estate issues
• Manage investments
• Address tax matters
• Conduct everyday financial transactions

Without a POA, banks and institutions cannot legally allow anyone to access accounts. Families may discover, at the worst possible time, that they cannot pay a mortgage, access funds, or manage financial responsibilities. A durable POA prevents these disruptions by providing clear legal authority.

Patient Advocate Designations And Healthcare Decision-Making

Health care decision-making during incapacity is controlled through a Patient Advocate Designation, also known as a Michigan Medical Power of Attorney. This is authorized under MCL 700.5506–5512. It allows a trusted individual to:

• Make medical care decisions
• Consent to or decline treatments
• Choose care facilities
• Access medical records
• Communicate with doctors when the patient cannot

This document is essential. Hospitals cannot rely on verbal permission from family members without proper legal authorization. A Patient Advocate Designation ensures that medical providers know exactly who is responsible for making healthcare choices and that those choices reflect the patient’s values.

HIPAA Authorizations And Access To Medical Information

Michigan medical facilities cannot discuss private health information without a HIPAA authorization that complies with federal privacy laws. Even close relatives are restricted. Adding this document ensures that the appointed decision-maker can access medical updates, speak with healthcare providers, and review important information during emergencies.

Avoiding Court Intervention

A complete incapacity plan bypasses guardianship and conservatorship proceedings. Instead of navigating the court system under stress, families can immediately act in accordance with the individual’s wishes.

Proper incapacity planning:

• Minimizes delays
• Protects privacy
• Reduces conflict
• Ensures continuity and stability

We regularly see families struggle when planning is incomplete or outdated. By establishing decision-makers in advance, our clients gain the reassurance that difficult situations will not be made harder by legal barriers.

Choosing The Right Decision-Makers

Choosing an agent under a POA or Patient Advocate Designation requires careful thought. Michigan law does not restrict these roles to relatives. The best choice is someone dependable, organized, and willing to act responsibly when needed.

Qualities to consider include:

• Trustworthiness
• Ability to communicate clearly
• Capability to handle financial or medical responsibilities
• Understanding of personal values
• Willingness to act under pressure

These appointments should be revisited regularly. Life changes such as divorce, new marriages, relocation, or shifting relationships may affect who is best suited for these roles.

Keeping Documents Updated

Even the strongest estate plan requires maintenance. Michigan residents should review incapacity planning documents every few years to ensure they remain accurate and enforceable. Banks, hospitals, and financial institutions sometimes reject outdated documents. Updating POAs, healthcare directives, and HIPAA authorizations avoids these issues.

Estate Planning Frequently Asked Questions

What Happens If Someone Becomes Incapacitated Without A Power Of Attorney?

In Michigan, if no POA is in place, loved ones must petition the probate court for a conservator to manage finances or a guardian to make personal and medical decisions. These proceedings take time, require hearings, and may result in the appointment of someone the family would not have chosen. Planning ahead avoids court involvement and ensures the correct decision-maker is already in place.

Is A Spouse Automatically Allowed To Make Decisions During Incapacity?

No. Michigan law does not automatically grant a spouse authority to manage financial accounts or make medical decisions without proper legal documents. Banks and healthcare providers require written authorization or a court order. A Patient Advocate Designation and Durable POA prevent these access issues.

Can One Person Be Appointed For Both Financial And Medical Roles?

Yes. Many people choose the same trusted individual, but Michigan law allows different people for different roles. Selecting separate agents can be helpful when one person is better suited for financial responsibilities, and another is better suited for healthcare decisions.

How Often Should Incapacity Planning Documents Be Updated?

Documents should be reviewed every three to five years or whenever major life changes occur. Events such as marriage, divorce, relocation, or changes in health may require updates. Keeping documents current ensures they will be accepted without delay when needed.

Do POAs And Medical Directives Need To Be Filed With The Court?

No. These documents become effective once properly signed and witnessed. However, they must be stored safely and shared with the appointed agents and medical providers. Filing is only required if court proceedings become necessary due to a lack of planning.

Can An Agent Misuse Authority Under A Power Of Attorney?

While Michigan law imposes fiduciary duties on agents, misuse is possible. This is why selecting a reliable, trustworthy individual is essential. Michigan courts can revoke authority and hold agents accountable if they violate their responsibilities.

Call Boroja, Bernier & Associates For Guidance

Effective incapacity planning protects personal wishes, reduces stress for loved ones, and ensures that trusted individuals are legally empowered to act when needed. At Boroja, Bernier & Associates, we help families in Troy, Shelby Township, Oakland County, and Macomb County create clear, legally sound plans that safeguard their futures.

To schedule a consultation with the Michigan estate planning attorneys at Boroja, Bernier & Associates, by calling our law offices at 586-991-7611. Our team is ready to help build a plan that provides stability and peace of mind.