Many people like the idea of creating a springing durable power of attorney for finances -- that is, a document that takes effect only if one or more doctors certify that you are incapacitated and can no longer handle your financial affairs. A springing document offers a legal guarantee that your agent for finances will not -- and in fact cannot -- use the document until it’s absolutely necessary.

In most cases, however, the benefit of creating a springing power of attorney is far outweighed by the drawbacks. First, chances are good that you will trust your agent for finances so well that improper use of your power of attorney would never be a serious concern. (Indeed, you should name someone as your agent only if you have that kind of trust in him or her.) Second, springing powers of attorney can give rise to a host of administrative and practical hassles, including a potential run-in with federal law.

By now you may have heard of the Health Insurance Portability and Accountability Act, more commonly known as HIPAA. This federal law governs how and when medical providers can disclose information about their patients. Though HIPAA was not designed to cover the circumstances presented by power of attorney documents, there is a chance that a doctor could point to the law as a reason to refuse to provide your agent with a certification of your incapacity, thus preventing your power of attorney from taking effect.

Because of this and other difficulties, we strongly recommend that you prepare an immediately effective durable power of attorney for finances rather than a springing one. You can do so using Living Wills & Powers of Attorney for California.

If you are absolutely certain that you want a springing durable power of attorney for finances, we recommend that you have a knowledgeable lawyer draw up the necessary documents, including a HIPAA release form.

• Living Wills & Powers of Attorney for California