What document allows an individual to make decisions on behalf of another who is incapacitated?

A Durable Power of Attorney is the correct document that allows an individual to make decisions on behalf of another person who is incapacitated. This legal instrument grants a designated agent or attorney-in-fact the authority to act in legal and financial matters when the principal is unable to do so due to incapacity. It is broader in scope compared to similar documents, enabling the agent to manage financial transactions, property, and other essential decisions, which is crucial when the principal can no longer express their wishes.

In contrast, a Medical Directive is typically focused on providing instructions concerning medical treatment preferences, especially regarding end-of-life care. While it can guide healthcare decisions, it does not appoint someone to act on behalf of the incapacitated individual in a general sense. A Living Will is a specific type of advance directive that specifies the medical treatments a person wishes or does not wish to receive if they are terminally ill or permanently unconscious, but it lacks the agency powers of a Durable Power of Attorney. A Health Proxy, on the other hand, is limited to medical decisions and appoints someone to make healthcare choices when a person cannot do so; it does not encompass the broad powers over financial or personal affairs that a Durable Power of Attorney does.

This highlights the distinct purpose