Life is unpredictable, and being prepared for the unexpected is one of the most responsible things you can do. While we often think about making wills, many Canadians overlook a crucial document that can protect their interests while they’re still alive: the Power of Attorney (POA). Here are the top five reasons why every adult should have a Power of Attorney in place.
1. Medical Emergencies and Unexpected Incapacity
Medical emergencies strike without warning. Whether it’s a sudden accident, a severe illness, or a progressive condition like dementia, you could find yourself unable to make important financial decisions. A Power of Attorney ensures that:
- Your bills and mortgage continue to be paid
- Your investments are managed properly
- Tax deadlines are met
- Insurance claims can be processed
- Business affairs remain in order
Without a Power of Attorney, your loved ones may need to apply to the court for guardianship, which is time-consuming, expensive, and stressful during an already difficult time.
2. Out-of-Country Emergencies
When you travel abroad for vacation, work, or extended periods there is a potential risk that something may happen while you’re away. You might experience a medical emergency, be in a accident, or simply be away for longer than intended (for example: COVID quarantines and travel disruptions). If something happens to you while you’re away, having a Power of Attorney allows your trusted representative to:
- Access your Canadian accounts to pay bills
- Handle urgent property matters (like plumbing issues)
- Deal with agencies like the Canada Revenue Agency on your behalf
- Manage investments or business dealings
This becomes especially critical if you’re incapacitated while abroad and cannot communicate your wishes directly. Or if a situation, like a home repair, requires a physical presence.
3. Protecting You Through Cognitive Decline
Many of us will face cognitive decline through conditions like Alzheimer’s or other forms of dementia as we age. A Power of Attorney created while you’re mentally competent ensures:
- Your financial affairs are managed according to your wishes
- Your family can avoid legal battles over capacity or appointing a guardian
- Decisions about your property and finances are made by someone you trust
- Your assets are protected from potential exploitation
Remember, once you lose mental capacity, it is too late to create a valid Power of Attorney.
4. Peace of Mind for Families
Having a Power of Attorney in place provides tremendous peace of mind for both you and your loved ones. It:
- Prevents family disputes about who should make decisions
- Gives clarity to your wishes and expectations
- Reduces stress during challenging times
- Ensures continuity in managing your affairs
- Protects your privacy by avoiding court proceedings
- Allows you to choose who will manage your affairs rather than allowing the courts to appoint somone
Provincial Variations
It’s important to note that Power of Attorney laws vary throughout Canada. Some provinces have:
- Separate documents for financial and healthcare decisions
- Different forms for enduring (continuing) Power of Attorneys versus ordinary Power of Attorneys
- Specific witnessing or notarization requirements
- Different names for similar documents
Always consult with a lawyer in your province to ensure you’re creating the right documents with proper execution.
Taking Action
Creating a Power of Attorney is one of the most important steps you can take to protect yourself and your loved ones. While templates are available online, it’s wise to consult with an estate planning lawyer to ensure:
- Your Power of Attorney meets provincial requirements
- You understand the implications of the powers you’re granting
- Your document coordinates with your will and other estate planning documents
- Your personal circumstances are properly addressed
Don’t wait until it’s too late. Take control of your future today by establishing a Power of Attorney that reflects your wishes and protects your interests when you need it most.