Many people are hesitant to acquire a Power of Attorney when they are young and that is understandable since many don’t envision that such a document would be needed at early stages of life. The problem with that thinking is that if you do not acquire it early enough, depending on the circumstances, you may not be able to and this may have serious consequences.
In order to sign a legal document and therefore create a Power of Attorney, you must have what we refer to as legal capacity. Legal capacity refers to the state of knowing the actions that you are taking and what their legal implications are. In the case of a Power of Attorney, this means knowing that this document will allow someone else to handle your financial affairs as if they were you. It can be as limited as you want it to be, or very general. It can also be “enduring” which means it will continue in the event you, as the person giving the power, becomes incapacitated in the future. The power you grant can include the ability to sign financial documents ranging from Deeds to sell your home to withdrawing money from your bank account. This is a lot of legal power, but it is something you may need and if you don’t have it when you need it you may be in trouble!
What if you are a stay at home parent or spouse and your spouse is the breadwinner in the family? If your spouse travels at all and something comes up, you may not be able to take care of it without their signature. If you had a Power of Attorney you would be able to sign things on your spouse’s behalf. One example of this is if you needed a loan to repair your roof that all of a sudden started leaking. You likely would not be able to get a loan of this nature in your own name, only in your name jointly with your spouse or your spouse’s name alone. With Power of Attorney, you could get that loan without going through the hassle of trying to connect with your spouse wherever they are travelling and have them sign documents while they are away.
What if you both work and an important piece of mail was addressed to your spouse which was not able to be delivered to your home and is waiting at the post office for pick up. If you don’t already have documentation on file with Canada Post expressly permitting you to pick up mail that is in your spouse’s name you cannot pick it up without a Power of Attorney allowing you to. You would have to wait for your spouse to be available to pick it up themselves.
These are just some examples of why you or a loved one should strongly consider meeting with one of our lawyers to have them prepare a Power of Attorney and provide advice on the legal implications of creating this legal document. This low cost up front is nothing compared to the expense of trying to solve the problems created later by not having this document.
Amanda Lutz is an Articled Clerk with Kennedy Schofield Lawyers. Articles posted on this blog are meant to offer general information and should not be relied upon as legal advice. For advice on your specific matter, contact Amanda or any of our lawyers at 902-826-9140.