A power of attorney (POA) is a legal document that assigns someone else the power or authority to make decisions about your personal and/or financial affairs, usually if you are mentally or physically unable to do so yourself. The appointed person is called an agent or attorney (but it doesn’t mean they are your lawyer!). While it is the duty of your assigned attorney to always act with your best interests in mind, it’s important to carefully outline what your attorney can or cannot do on your behalf. You can always revoke your power of attorney if you feel they aren’t acting with your best interests at heart or if they simply aren’t suited to the role. Be sure to seek legal advice before revoking a POA to ensure you’ve not missed any important steps.
Power of attorney for personal care
If you become incapacitated, you can let someone else make decisions about your personal care and health care through assigning an attorney. It may be required that a medical professional must determine if you are indeed incapacitated or incapable of making these decisions, especially if it’s around medical treatments or long-term care.
- Living wills
An important step in this process is to include a living will, which is a personal statement of your wishes for end-of-life care if you are unable to do so yourself. This can include medical treatments, life support wishes or even organ donations. It’s very helpful for loves ones when a living will is in place, as it saves them from making these difficult decisions on their own.
Power of attorney for property
There are two kinds of power of attorney for property. A ‘non-continuing power of attorney’ is someone who’s appointed to look after your property, assets and/or finances for a specific time, with a set start and end date. For example, if you’ll be in hospital or out of the country, you can appoint someone to act as your attorney for that length of time until you are able to resume your duties.
The other type of power of attorney is a ‘continuing power of attorney for property’, who can act on your behalf if you become physically or mentally incapable – for an unlimited length of time. The understanding is that your attorney works to carefully protect and manage your assets.
Some of the key duties an attorney can carry out for you include:
- Banking
- Paying bills
- Apply for benefits, pensions, or other money you may be entitled to collect
- Monitor and manage your investments/portfolio
Who to choose
Clearly, the most important consideration when choosing your attorney is to pick someone you trust. Next, they must be mentally and physically capable of carrying out these duties. Before appointing anyone, talk to them first to make sure this is something they can do. Spend some time reviewing your wishes and stipulations so they have a thorough knowledge of the situation.
For your personal care, it’s important to choose someone who cares about you, but you cannot choose a health care practitioner, homemaker, attendant social worker…or anyone in a ‘helping’ or medical profession, as well as a teacher or landlord.
For your attorney for property, you can choose the same person as you did for your personal care, or someone different. You’ll need to choose someone who understands finances thoroughly; they will need to keep detailed records of all banking and business transactions, as well as manage your assets and general finances. You can also hire someone from an outside agency for your power of attorney, but be sure to do your research and get references first.
What happens when you don’t have a POA?
If you become incapacitated without a power of attorney, you run the risk of having a substitute decision-maker or another type of guardian appointed to make decisions on your behalf. Usually, this would be a family member, but if none were available, it would a court-appointed person. It’s often a lengthy, complicated and sometimes costly process, which can impede or hinder your personal or health care, assets and finances.
When to seek legal advice
Considering the importance of having your care and finances managed according to your own wishes, it’s recommended that you consult with a lawyer to discuss your power of attorney options. You can trust your lawyer to make sure your bases are covered and that all conditions and specifications are listed.
At Ares Law, we specialize in estate law and we can help you draft your power of attorney. It’s our job to advise you on your options and help you understand the process. We’re also are here to help you draft a legally binding will or work with you to update your current one if you don’t already have one. Book an appointment with us today by calling (705) 645–8743 and let’s get started.
