Planning ahead with a Power of Attorney
Learn how a Power of Attorney document can help you, and your family members.
What is a Power of Attorney?
A Power of Attorney is a legal document that gives someone else the power to take care of your financial or legal affairs while you are still alive, but unable to take care of your own affairs.
In what kinds of situations are powers of attorney useful?
Powers of attorney can be used to have a trusted family member or friend stand in your shoes to take care of things, when you are unable to do so.
Sometimes, people give a power of attorney to someone for a particular reason, or because of an upcoming known event, for example to take care of their financial arrangements while they are out of the country, or in anticipation of an upcoming hospital stay.
Many times, we see the elderly giving powers of attorney to a family member to help them with specific tasks such as banking.
Powers of attorney are often used to plan for times when it would be difficult, or impossible to take care of these things ourselves, due to physical impairment, or in the event we became unable to understand these tasks and make decisions due to mental health issues, and incapacity. An enduring power of attorney survives mental infirmity of the person granting it, and has to be witnessed by a limited type of professional, such as a lawyer.
What powers are given in a power of attorney?
Usually a power of attorney gives the other person general powers, to do all things which may be required such as banking, signing documents, renewing leases and mortgages, paying accounts, and the like.
Who should I give this power to?
Usually people name a trusted family member, or close friend to act as their “attorney” under the power of attorney. The “attorney” in this document is not (usually) a lawyer; it is the person to whom you are giving the power to take care of your affairs. The person should reside in the same province and be willing to take on this responsibility.
What happens if I don't have a Power of Attorney?
If you don't have a Power of Attorney document, a third party will need to apply to court in order to be granted the authority to deal with your finanicial matters. This takes time, and legal fees. The cost of the legal fees is typically significantly greater than the legal fees associated with preparing a Power of Attorney document.