Will - Updating Will - Invalid or No Will - Power of Attorney - Personal Directive
DANGERS without a POWER of ATTORNEY
Legally protect your financial and property interests while still alive, yet incapable of acting for yourself due to personal incapacity.
To schedule an appointment, contact our law firm at 403-400-4092 or Chris@NeufeldLegal.com
Not having a legally valid power of attorney, for financial and property-related matters, should you become incapacitated, or otherwise be unable to make decisions for yourself, can prove exceedingly problematic and costly. Among the potential dangers that could arise should you not have a legally valid power of attorney:
A. Loss of Control and Inability to Manage Finances
-
No Automatic Authority: Even a spouse or adult child does not automatically have the legal authority to handle your financial matters (pay bills, manage bank accounts, file taxes, sell property, etc.) if you are incapacitated.
-
Frozen Accounts and Unpaid Bills: Banks, investment firms, and other institutions will typically lock or restrict access to accounts held only in your name until a court orders otherwise. This can result in:
-
Unpaid mortgages, taxes, and utilities.
-
Accumulating late fees and penalties.
-
Damage to your credit score.
-
Neglected investments, missing opportunities for necessary rebalancing or tax loss harvesting.
-
Inability to access funds for your own medical care or living expenses.
-
B. Forced Court Intervention (Trusteeship)
-
The Only Legal Option: Without a valid power of attorney, your loved ones will likely have to petition the court to have a trustee appointed to manage your financial affairs.
-
Expensive and Time-Consuming: This court process is often lengthy, complex, and requires significant legal fees, court costs, and medical evaluations. It can take weeks or months to complete, leaving your financial affairs in limbo during a critical time.
-
Loss of Choice: The court, not you, decides who is appointed as your trustee. This may be a professional or a family member you wouldn't have chosen, and they must report to the court regularly, which can be burdensome and invasive.
-
Public Record: Trusteeship proceedings are a matter of public record, meaning your private financial and medical details become publicly accessible.
C. Increased Family Conflict
-
Disputes Over Management: If no one has been legally designated, family members may disagree about who should take charge, how your money should be spent, or what investments should be made.
-
Court Battles: These disagreements can lead to contested court proceedings, further increasing costs and emotional strain on your family during an already difficult time.
D. Limited Scope of Authority
-
Joint Ownership Problems: Sometimes people try to avoid a Power of Attorney by adding an adult child as a joint owner on bank accounts. This can lead to unintended consequences, as the joint owner's personal creditors could potentially lay claim to your funds, or the joint owner's share may not align with your estate planning wishes.
-
Incomplete Protection: Joint ownership typically only works for that specific account and does not grant the authority needed for real estate transactions, managing retirement accounts, or interacting with insurance companies.
Whether you are looking to have a power of attorney for finances created or require legal representation in the implementation of an incapacitated person’s power of attorney, contact our law firm today at 403-400-4092 or via email at Chris@NeufeldLegal.com to schedule a confidential initial consultation.
IMPORTANT NOTE: This website is designed for general informational purposes. The site is not designed to answer specific questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as substitute for individual legal advice. If you want specific legal advice, you need to engage a lawyer under established legal engagement procedures that have been specifically agreed to by that lawyer.
Contact Info - Mobile Services - Hospital Visits - Legal Notices - Privacy - Terms of Use - Main Will Webpage