Why Powers of Attorney for Property Matter More Than Ever

Do we need to talk about your money? Now is a good time to know more about your alternatives. I am speaking from experience.

People are living longer and need help with their finances as their needs change. You may think you are smart enough to handle your money without ever paying for financial advice. You may be right.

However, what happens if you are injured or suffer a setback, like a stroke? Will your doctors advise the government that you can no longer manage your property? Will you be declared incapable of managing property?

Powers of Attorney for Property (POAP) Basics

You cannot name an attorney for property under your will. Wills are only effective upon your death. You need a power of attorney for property prepared. It is a signed document and designates who can manage your property while you are alive and capable.

A power of attorney for property (POAP) can be a continuing power of attorney valid during any incapacity that you may suffer under Ontario’s Substitute Decisions Act, 1992. You must name a substitute decision maker or attorney in your legal document. You name an alternative or backup attorney in case your first choice cannot act.

Why Powers of Attorney for Property Matter

What happens if you become incapable and can no longer handle your day-to-day affairs? Must the government become your guardian of property? Yes – unless you have a valid POAP.

Do not think that your adult children or spouse can just step in and sign papers for you. They must have properly prepared and signed powers of attorney for property to sell your investments, renew your mortgage or sell your property.

Your attorney can do whatever you can do. They cannot make or change your will.

Homemade POAPs Can Be Invalid

What if someone declares your do-it-yourself power of attorney invalid? This can happen if you do not comply with the legal requirements for powers of attorney for property. Your loved ones may be compelled to go to court to be appointed as guardians of your property. This is an expensive and time-consuming process, even to become a temporary guardian.

Courts must approve the right persons as your guardians. They cannot have a conflict of interest. Proposed guardians must file a detailed management plan for court approval. This explains what they will do with every asset you own and all the income you receive.

Guardianship of Property

Guardians may be required to file security and annual accountings with the court to approve their handling of your affairs. Guess how many lawyers will be involved.

Guardians will handle your investments and maintain your home and vehicle. If you are incapable, they may need directions from a court to handle changes or questions.

POAPs Save Families Money and Anguish

Yes, having valid powers of attorney for property in place can spare your loved ones these costs. Not to mention the anguish of going through public court procedures to be appointed as your guardian.

You must have powers of attorney for property prepared while you are capable – not when it’s too late. You must have properly signed and witnessed POAP documents.

Lawyers can provide evidence to validate your POAP, if necessary, for any financial institution that needs to rely on the document.

Choose an attorney and a backup that you trust and sign your POAP. To arrange an appointment to discuss your choices as attorney, contact me.

Elder Abuse

More than ever, with an increasingly aging population, elder abuse has become evident. It is crucial for people concerned about their financial circumstances to arrange powers of attorney for property. Protect yourself for when you can no longer manage your affairs.

Do you need help getting started with powers of attorney? Not sure what’s involved or who to choose? I understand and can help you. Contact me for a meeting.

I am a Certified Estate Specialist.