Many people aren’t exactly sure what a power of attorney is, and if they need one. For this reason, we’ve outlined the key points about this and what it means to you. A power of attorney (POA) is a legal document that gives someone (it can be more than one person) the power to make decisions on either your personal or financial affairs or both, most often in the situation that you may become mentally or physically incapable. This assigned attorney has the responsibility to look after your affairs while acting with integrity at all times while keeping your wishes and best interests at the forefront.
Power of attorney – personal care
If you become physically or mentally incapacitated due to illness, injury, dementia, and so on, you can assign an attorney (or agent) to be in charge of decisions around your health and/or personal care including day-to-day living, hygiene, medical care and so on. In many cases, a doctor must asses your abilities to ensure that you are indeed not able to make such decisions.
Within your power of attorney, you can also set up a living will. This is a document that outlines your intentions for end-of-life care and medical interventions you may or may not want. Your family will thank you for having a living will in place, as it means they won’t be in a position to make such critical decisions as you’ve already listed what you want to have happen.
Power of attorney – property
When it comes to having a power of attorney for your property and assets, there are two choices.
- A ‘non-continuing power of attorney’ is appointed to look after your finances, property and so one for a limited time only as outlined in your document. This is handy for people who may need to travel extensively, undergo surgery or medical treatments and so on and who needs someone to look after their finances during that time only.
- A ‘continuing power of attorney for property’, acts on your behalf if you become physically or mentally incapable – for an indefinite length of time or until you pass away.
The key responsibilities of your attorney include:
- Paying your bills and expenses
- Collecting money owed to you
- General finance management
- Apply for benefits, pensions, or other money you may be entitled to
- Monitor and manage your investments/portfolio
- NOTE: The attorney is not responsible for carrying out the stipulations in your last will and testament unless they have been formally and legally appointed to the role of executor.
Choosing your power of attorney
You’ll need to pick an individual (or two) you trust for this important job, who must also be up to the job both mentally and physically. There could be doctor’s visits, banking appointments, forms and applications to complete and so on.
In terms of your assets and your portfolio, be sure that you’ve found someone who understands the world of finance, and who’s organized enough to keep careful records. If you’d rather hire a professional for this task, there are agencies who can provide someone to be your power of attorney – with a fee of course.
When you don’t have a power of attorney
Without a power of attorney in place, if you become incapacitated, things can get tricky. While in some cases there may be an obvious, close family member appointed as a guardian or substitute, it may not be a person you personally want in charge of your personal health or property. If others dispute this appointment or there simply is no one available, the process to appoint someone can be time-consuming, expensive and ultimately have a negative impact on your personal and financial well-being.
Seeking legal advice
As you can see, leaving your health, and financial welfare in the hands of others is a serious consideration. Retaining the services of a reputable lawyer who specializes in wills and estates is always a good idea. At Ares Law, drafting up your power of attorney, your living will, and/or your last will and testament is exactly what we do for our clients! We’ve got your best interests at heart at all times, and you’ll get sound legal advice about the process along every step of the way. Connect with us today at our Parry Sound office – 705-746-6444; we’re here for you.
