It’s wise to be prepared for incapacity
For your financial affairs – the Power of Attorney
 If
you’re like most people, you probably believe that if
you were to become mentally or physically incompetent, your
family could simply act on your behalf. Not so. Without a
court order or a Power of Attorney*, they could not manage
your financial affairs.
*In the province of Quebec, the Power
of Attorney is called a mandate. The term ‘mandatory’
is used in place of ‘attorney’ and the ‘mandator’
is equivalent to ‘donor’.
Many people believe that a Will is the only legal document
they need. They don’t think of the possibility that
they could become incapacitated due to illness or accident
and need their affairs managed on their behalf.
Many people believe that their spouse can automatically assume
the responsibility. However, without a Power of Attorney,
any financial accounts that are not jointly held could not
be accessed by your spouse.
An enduring or continuing power of attorney can solve the
problem. It gives your attorney or any other person you designate
the authority to manage your affairs. It can be broad reaching
in scope, covering all the things you would normally do, or
it can be narrow, e.g. limited to bank accounts or investments
only. It can also be a simple power of attorney for a limited
time, as when you are away from home and require certain matters
to be handled.
For your medical care – The Living Will
Also known as a Power of Attorney for Personal Care, a living
Will provides instructions regarding your medical care if
you were to become incapacitated and unable to state your
wishes. It could also indicate the type of medical treatment
you may or may not wish to receive.
If you were to suddenly become incapacitated, by a stroke
for example, and you did not have a power of attorney, your
family would have to apply to the courts to have someone appointed
to manage your affairs. This could be an expensive and lengthy
process, often taking weeks or even months. Having a power
of attorney avoids these expenses and delays.
Although called a power of “attorney”, you are
free to appoint anyone you desire – an adult child,
spouse, good friend, trust officer – it’s your
choice. You can also appoint two or more individuals and specify
if they need to act together (jointly) or if they can act
together and separately (jointly and severally).
Simply put, a power of attorney can help make the best of
a difficult situation and is an essential part of every estate
plan. And of course, as with many of the topics discussed
here, it usually is wise to consult with a professional.
Important information about our financial planning services can be found at the bottom of our
homepage.
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