No one ever plans to get sick but making Power of Attorney documents when you are healthy is to prepare for unexpected emergencies.
In our last post, we discussed factors to consider when choosing an Estate Trustee for your Will. In today’s article, we will discuss Powers of Attorney.
NOTE: This article is for general information only and is not to be construed as legal advice. Please contact the author / Boardwalk Law LLP for a consultation if you would like to get legal advice on your personal circumstances.
Our firm is happy to help you create a Will and Powers of Attorney. If you already have a Will and Powers of Attorney, when was the last time you reviewed them? Speak to one of our lawyers today!
________________________________________
What is a Power of Attorney?
A Power of Attorney is a legal document where you can appoint someone else, called the “Attorney”, to act on your behalf.
Note: The term “Attorney” does NOT mean this person is lawyer. “Attorney” means this person was given powers to act under a Power of Attorney document.
When is an Attorney appointment made?
Appointing someone to act as your Attorney is usually done as part of the estate planning and Will preparation process.
There are 2 Types of Powers of Attorney:
Power of Attorney for Property
This document gives your Attorney for Property the authority to deal with financial affairs on your behalf.
Examples of the actions an Attorney for Property can take:
- Paying your debts
- Withdrawing money from your accounts,
- Communicating with banks & government agencies like CRA,
- Filing and paying your tax returns,
- Buying or selling your property.
Power of Attorney for Personal Care
This document gives your Attorney for Personal Care the authority to deal with all healthcare decisions when you are unconscious or don’t have capacity to make decisions for yourself.
Examples of the actions an Attorney for Personal Care can take:
- Consenting to or declining medical treatments,
- Reading your medical history,
- Reviewing your pharmaceutical records,
- Refusing resuscitation or ongoing life support.
But I am healthy, why do I even need a Power of Attorney?
Of course, no one ever plans to get sick, or get in accident! But those are circumstances that can happen to anyone.
The purpose of making Power of Attorney documents when you are healthy is to prepare for unexpected emergencies. Having a Power of Attorney prepared in advance helps your family take care of you if you ever can’t take care of yourself.
If you are sick, in the hospital, or unable to communicate, then it might be too late to make a Power of Attorney. Imagine you have been an accident, and you family needs to make medical or financial decisions for you? Those critical decisions might be delayed. If you have a Power of Attorney ready, your family can more easily get the information they need and make decisions on your behalf.
When does a Power of Attorney become effective?
A Power of Attorney for Property is usually valid when it is signed. You can also make specific conditions for it to activate, e.g., “this only becomes valid when I become incapacitated”.
A Power of Attorney for Personal Care gives the Attorneys power to make medical decisions if you are unable to make medical decisions for yourself. This would mean you are unconscious or have been diagnosed as incapable (e.g., diagnosis of dementia).
Since Powers of Attorney are granted as a pre-cautionary step, few people want them activated immediately. The documents should be held by a trustworthy person, and you must give explicit instructions on when the named Attorney can start acting with the document’s authority.
What duties does the Attorney undertake?
The Attorney must always act diligently and in good faith for your benefit.
Some responsibilities of an Attorney include (this list is not exhaustive, is for examples only):
- Consulting with family members when making medical decisions for you.
- Keeping accounts of all transactions involving property they manage on your behalf.
- Making payments on your behalf, for example, to your dependents, or to pay your bills/debts.
- Managing your financial assets, investments, bank accounts, etc.
- Dealing with your taxes.
- Hiring professionals like lawyers, accountants, and real estate agents.
- Dealing with banks to access your money, investments, and account statements.
What’s Should I Do Next?
If you are ready to get your Power of Attorney prepared, please contact Gordon Duy The Vuong, Associate Lawyer at Boardwalk Law to learn more: [email protected] / 905.798.6731.
Thank you for taking the time to read this post.
If you enjoyed this article, please stay tuned to Boardwalk Law’s blog and updates. In the coming weeks, Gordon will address the following related topics:
