The Importance of Power of Attorney
The Importance of Power of Attorney
POA’s (Power of Attorney) documents are crucial to a well-rounded estate plan. Many people are quick to get their Wills drafted yet ignore the POA documents and are unaware of just how important they truly are! Let’s take a deeper look into what a Power of Attorney is, and why it’s so essential for everyone over the age of 18 to have.
POA’s are legal documents that give one person the power to act for another person. There are two types of POA’s – property and personal care, both of which provide general or limited powers to the individual you choose to name. These documents ensure that your wishes are respected, and instructions followed should you become incapacitated and unable to speak for yourself.
A Power of Attorney for property authorizes another person to act on your behalf in financial matters. Some of their duties can include:
Paying your bills
Ensuring your assets are protected
Monitoring investment portfolios
Applying for benefits you may be entitled to
Collecting pensions and other income you are entitled to
A Power of Attorney for personal care is who can make health-care related decisions on your behalf. These decisions often include your quality of care, quality of life and possibly your continued life support.
Choosing someone to name as your Power of Attorney does not mean that you lose the power to make your own decisions immediately, it means that you are trusting someone to make these decisions for you when you are no longer capable of doing so independently. Choosing a POA is never an easy task, and there are many factors to consider such as:
Are they trustworthy?
Are they organized?
Do they have the time available?
Do you have a good relationship?
Will they act in good faith and advocate for you?
Since we don’t have a crystal ball to predict the future and death is inevitable, these documents are crucial for every adult to have in place to both protect themselves and their assets while ensuring that their wishes are respected.
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This blog is not intended to be legal advice and should not be relied on as such. If you require legal advice, please contact a legal professional concerning your particular circumstances.