Will - Updating Will - Invalid or No Will - Power of Attorney - Personal Directive
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
When you or your loved ones are incapacitated or otherwise unable to make important financial decisions, simply having a will has limited benefit, as a person who is alive gains no benefit from a document that only takes effect upon one's death. As such, when you become incapacitated, yet continue to be alive, you need a legal document that empowers someone that you've pre-selected to step in to handle your financial and property matters, namely a Power of Attorney.
Powers of Attorney for finances and property are an essential vehicle for providing control and direction to one's finances and property when an individual is incapacitated. It sets forth that individual's directions as to who should take charge of their finances and property, and how it is to be applied to satisfy the individual's desires and wishes. It is an essential control directive, that needs to be done correctly with an experienced lawyer capable of putting your intentions on paper [more on Alberta requirements].
In the absence of a Power of Attorney, you and your loved ones can face some very significant difficulties and risks, including:
A. Loss of Control and Agency
-
Without a Power of Attorney, you lose the ability to choose who will make financial and legal decisions on your behalf if you become incapacitated. This is perhaps the most significant danger, as a court may appoint someone you would not have chosen or trusted to manage your affairs [look into key considerations].
B. Court-Ordered Trusteeship
-
If you become mentally incapacitated without a Power of Attorney, a family member or friend will have to apply to the court for a "trusteeship order." This is a lengthy, complex, and expensive legal process. The court will appoint a "trustee" to manage your money and property. The person appointed may not be who you would have wanted, and the court process can cause stress and conflict among your family [more on dangers without].
C. Financial and Property Mismanagement
-
While a trustee appointed by the court has a legal duty to act in your best interest, there is a risk that your finances and property could be mismanaged during the time it takes to get a court order. Delays in accessing funds can lead to unpaid bills, missed mortgage payments, or other financial complications. Additionally, without a clear plan, your estate or business could be negatively impacted [more on mistakes to avoid].
D. Limited Scope of a Trustee
-
A court-appointed trustee's powers may be limited. For example, a trustee is generally not authorized to change your will or a life insurance policy. This can create further difficulties if your financial situation requires such changes while you are incapacitated [more on concerns with court-appointed trustees].
E. Increased Costs
-
The legal fees and court costs associated with obtaining a trusteeship order can be substantial. This financial burden is placed on your family or your estate, which can be avoided entirely by having a properly drafted Power of Attorney in place.
F. No Authority for Health Decisions (Personal Directive)
-
It is important to note that a Power of Attorney only covers financial and property matters. It does not cover personal and health-related decisions. For those, you need a separate document called a Personal Directive. Without a Personal Directive, a healthcare provider may turn to your nearest relative to make decisions about your health care, temporary residential placement, and other personal matters of a health or medical nature [more on Personal Directives].
Whether you are looking to have a power of attorney for finance 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