Power of Attorney
Next to your will, your Power of Attorney (POA) document is the most important component of your estate plan. Your “attorney” in this case need not be a lawyer, but refers to the person who is given the authority to act on your behalf. This can be your spouse, your child or children jointly, or anyone else over the age of majority. While your will outlines your wishes upon death, the POA authorizes someone to act for you while you are alive – but are either temporarily absent or are mentally or physically incapable of handling your own affairs. Your powers of attorney are separate documents from your will and ensure that matters pertaining to your property and personal care can be looked after according to your wishes.
You can grant POA to one person or to several. If you name more than one person, you need to choose how they will serve. It is common for spouses to name each other as attorneys. Often they will also grant joint, or alternate POA to an adult child. Generally speaking, there are two types of powers of attorney: power of attorney for property and power of attorney for personal care. A power of attorney for property gives authority to a person or persons to manage your property and financial affairs while you are living. The power of attorney for personal care enables a person or persons to make health care decisions on your behalf only when you are no longer capable of making such decisions for yourself.
Authorizing someone to act for you for financial and personal reasons is an excellent insurance policy for any adult — whether old or young, in poor health or good health. Do the planning now and put the documents in place to avoid possible complications later. Power of attorney legislation and terminology vary from province to province. MFC consultants are prepared to assist you with information on powers of attorney as it relates to your province of residence. Contact your nearest MFC Consultant today.