There are many good reasons why you should have a power of attorney, or POA, as a Canadian citizen.
A POA is a legally binding document that gives another person the authority to manage your financial affairs. Here are just a few of the many reasons why having a power of attorney in Alberta is strongly recommended:
Convenience
If you travel a lot or have a particularly busy schedule, having a trusted person take care of your routine financial tasks in your absence can save you time and money.
Business continuity
Should you go away on a trip or become incapacitated as the owner of a business, it can be incredibly useful—if not essential—to have a POA in place so that operations can run smoothly.
Avoiding court intervention
Without a POA in place, should you become incapacitated, your loved ones may be required to attend court to have someone appointed for the role. This can be a lengthy and costly procedure, and the court may appoint someone you wouldn’t ordinarily have considered for the role.
Peace of mind
Anything can happen to any one of us at any time, but with a POA in place, anyone who becomes incapacitated can at least rest easy knowing that their finances will be handled by someone trusted and responsible.
Incapacity
Whether from a health issue or an injury, should you no longer be able to make informed decisions about your finances yourself, a POA will make sure that all legal and financial affairs are taken care of responsibly and with your best interests in mind.
Becoming incapacitated is perhaps one of the most important reasons to appoint a power of attorney, because while none of us wants to think about a time when we won’t be able to manage our financial affairs, the reality is that it can happen to anyone, at any time.
Ultimately, without a POA in place, an individual loses the ability to legally appoint someone they trust to make decisions about their finances on their behalf. In effect, a person’s assets become frozen, since the signature that’s required for managing investments, paying bills, selling homes, etc., belongs to someone who is no longer capable of providing it.
What may also happen is that a governmental body steps in to manage the deceased’s financial affairs in the absence of anyone else volunteering to do so, which could see your preferences and personal wishes not being honoured. It’s worth noting that such bodies may also charge exorbitant fees for the management of a person’s financial affairs.
The simplest and most effective way to avoid any of the issues above, especially those challenges that can arise in the event of you becoming incapacitated, is to appoint an enduring power of attorney in Alberta with the help of an estate planning lawyer.
Having this document properly prepared by a lawyer means that your wishes and preferences with regard to the management of your financial affairs will be respected and carried out should you no longer be able to manage them for yourself.
