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An advanced directive is a legal document that outlines a patient's healthcare preferences when they can't make decisions themselves. It may also designate a proxy to make choices on their behalf. The video discusses when advanced directives are applicable, who should create one, and the four types available. They are valid in any medical setting where the healthcare provider is aware of them, though a provider may override them for reasons of conscience, institutional policy, or legal standards. It's important to note that laws regarding advanced directives differ by state, with some states recognizing those from others, and patients can modify or cancel their directives.