Protect Yourself With A Power Of Attorney
Life is unpredictable. Why not be prepared and protect yourself by deciding who would be an ideal person you trust to take care of your financial and legal affairs if something were to happen to you? A power of attorney is often overlooked in estate planning. People tend to focus on drafting their wills and trusts while deciding who will serve as their power of attorney at the very last minute. Deciding who to appoint is important and should not be taken lightly.
If you’re wondering what would happen to your investment property or your health if you could not make a decision for yourself, you may want to consider looking into getting a power of attorney. These are all important questions to consider, and a knowledgeable notary public would be a great place to get more information. A power of attorney (POA) is a legal document that gives an individual the authority to represent you and make decisions on your behalf. Having a power of attorney made is a great decision if you are looking to protect your financial affairs and personal and healthcare decisions.
When you have a power of attorney, you can decide how much authority the attorney has. It can be general or limited to specific acts they can perform. The attorney can make bill payments, take care of investments of assets, sale of property, as well as make health care decisions. You, the ‘grantor,’ decide who will be in charge of making these important life decisions for you in advance when creating a power of attorney.
In BC, there are two types of power of attorney. Here is a breakdown of what they are and what they include. To get a more in-depth understanding of each one and which one is right for you, get in touch with a notary public in Vancouver.
Two types of Power of Attorney
- Enduring power of attorneys: The enduring power of attorney gives someone you trust the ability to make decisions on your behalf if you cannot medically do so yourself. This individual has the authorization to make all decisions on your behalf except for creating a will. Examples of what they would do for you include paying your bills, maintaining property, managing investments and collecting any debt.
- General power of attorney: This legal document can give your attorney authority over all or some of your finances and property. This type of power of attorney can be ‘specific’ or limited,’ which means that you can give someone authority to your attorney for a specific period of time or task, such as selling property.
The general power of attorney allows the individual to manage your finances and property on your behalf while you are mentally capable of managing your own affairs. It ends if you become mentally incapable of managing your own affairs.
It is important that you choose your attorney carefully. Consider whether you trust them to make the best decisions when managing your money and property. People typically choose their spouse, a relative, or a close friend that they believe has good judgement and is aware of their wishes.