Updated: Apr 6, 2023
Before we go further, let us clarify these two terms; a Power of Attorney for Property is a Financial directive, and a Power of Attorney for Healthcare is a Personal directive. We will use a personal and financial directive below.
A personal directive is about property, financial, or personal affairs. A financial directive is about protecting assets during a lifetime.
A personal directive protects preferences for day-to-day affairs, values, and beliefs during a lifetime. It is about affairs you manage locally. A financial directive is to protect your property locally, nationally, or Internationally.
A personal directive is called a Power of Attorney for Personal care, Power of Attorney for Healthcare, etc., A financial directive is also called a Power of Attorney for Property, Power of Attorney for Financial, etc.,
A personal directive can become effective before or after physical disability or mental incapacity. A financial directive can become effective before or after physical disability or mental incapacity.
The keyword for Personal directive, you should remember, is “PERSONAL,” which means your personal affairs in a lifetime. The keyword for Financial directive, you should remember, is “FINANCIAL,” which means your property or finance.
A personal directive is revocable until mental incapacity. A financial directive is revocable until mental incapacity.
A personal directive and financial directive can be created by any adult who has reached the age of majority determined by his or her country or jurisdiction.
Muslim Personal directive and Muslim Financial directive laws are country-specific in most countries except Canada, the United States, Australia, and part of Europe, where laws differ from one jurisdiction (i.e., State, Province, or Territory) to another.
Personal directive's foundation is what you think, your likes, your values, your affairs, and your faith. A financial directive's foundation is to have trust in someone whom you appoint. It’s about moral, legal, and religious obligations to fulfill.
A personal directive goes through medical/legal assessment before it becomes effective.A financial directive can be effective as soon as created or upon physical and/or mental incapacity. It may go through medical/legal assessment to determine the inability.