If you had a Financial Power of Attorney, your spouse would be able to sign on your behalf. This means that your spouse would be stuck in the family home whether they like it or not, and be unable to sell it until you have passed away. But if you have lost capacity, you cannot sign. Your spouse may want to sell the house and move into something smaller, but they would be unable to do this because the documents would need you both to sign. You would need somebody to just handle ongoing mail.Ī Financial Power of Attorney can then become active and allow your representative to take care of your banking needs.Īt the other end of the spectrum, supposing you were put into care, and you were diagnosed with Alzheimer’s. While in hospital you may need credit card bills paid, subscriptions, rent, utilities, investments handled. You could be knocked off your bicycle and hospitalized. This can take a number of different forms. In fact, if you lose capacity and do not have a PoA in place, you are exposing your family to potential feuds, just like Casey Kasem.įirstly, let us consider what we mean by “lost capacity”. And the document cannot be created after you have lost capacity. However, if you were to ever lose capacity the document is absolutely critical. You may never find yourself in this position, and so it is possible that the document may never be used. But the Power of Attorney is only going to come into effect if you were to ever lose capacity. I know I need a Will, but do I also need a Power of Attorney? One of the most common questions we receive is Is a Power of Attorney as important as a Will?
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So although technically the more accurate term is a Springing PoA, we go with a “Durable PoA” because this is what everybody calls it. Most people refer to this as a Durable Power of Attorney, or an “ Enduring Power of Attorney“, or “ Continuing Power of Attorney“. Most people who come to us are looking for a document that will come into effect if they were to ever lose capacity. A Durable PoA can technically be general, specific, immediate or springing. This is a document that “endures” your loss of capacity. The term Springing Power of Attorney is also mixed up with a Durable Power of Attorney. This is called a “ Springing Power of Attorney“. General Powers of Attorney can be further classified into one that comes into effect immediately, and one that comes into effect only when a future event occurs (usually, if you are incapacitated). This kind of document isn’t generally regarded as a part of an estate planning portfolio. For example, if I was living overseas and needed somebody to sell my car for me back in Canada, I could create a specific Power of Attorney that would give my representative the powers to do this, but limiting the powers to this one transaction. The General Power of Attorney is set up to allow a named person to handle all of your financial affairs.Ī Specific Power of Attorney is set up to handle a particular transaction. There are two broad classifications of Financial Power of Attorney a General PoA and a Specific PoA. Most people when they talk about a Power of Attorney are not meaning a Healthcare document.Ī Financial Power of Attorney is typically the document that people mean when they ask for a PoA. In this document, you name a person to make medical decisions on your behalf. The first classification is the Power of Attorney that directs your medical needs a Healthcare Power of Attorney. credit: 123rf What types of Power of Attorney are there? Together, these three documents make up a complete Estate Plan in Canada.
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It usually combines the naming of a Healthcare Proxy with an expression of the type of treatment you wish to receive through an Advance Directive. This document should not be confused with either a Last Will and Testament (or simply a “Will”) or a Living Will.Ī Last Will and Testament makes key appointments and describes the distribution of your estate after you have died.Ī Living Will is a document that is also in effect while you are alive, but deals only with your health condition and medical treatment. A Financial Power of Attorney appoints somebody to take care of your financial affairs while you are alive, but usually after you have lost capacity.