Power of Attorney: Don’t wait until it’s too late
When “important, not urgent” becomes urgent: why you shouldn’t delay your Power of Attorney
We all have those “important but not urgent” tasks we tend to postpone: writing a will, reviewing life insurance or putting a Power of Attorney in place. But these can quickly shift from optional to essential.
What happens if you lose capacity without a Power of Attorney?
We recently spoke with a client whose father had suffered a serious stroke. Because there was no Power of Attorney (POA) in place, the family found themselves in an impossible position. Bank accounts were frozen (including joint ones) and even basic financial tasks required a court’s approval. The result? A stressful, expensive and drawn-out four-month legal ordeal.
It’s a scenario we never want our clients to face. But it happens more often than you’d think.
What is a Power of Attorney and why is it important?
A Power of Attorney is a legal document that allows someone you trust to make decisions on your behalf if you become unable to do so. There are two main types:
- Property & Financial Affairs POA: Enables your chosen attorney to manage your finances, such as paying bills, accessing bank accounts or handling investments.
- Health & Welfare POA: Grants authority to make decisions about medical treatment and personal care.
You can set up one or both types and they only come into effect if you lose mental capacity. Without them, even your spouse or adult children won’t have automatic authority to act for you.
Why should you set up a Power of Attorney sooner rather than later?
Many people think of Powers of Attorney as something to deal with in retirement. But the reality is, the best time to set one up is long before it’s needed. Accidents and illnesses can happen at any age. The earlier you have these documents in place, the more control you have over who will make decisions for you. And how.
How difficult is it to put a Power of Attorney in place?
In most cases, setting up a POA is a straightforward process. You choose your attorney(s), complete the necessary forms and register the documents with the Office of the Public Guardian. While it’s possible to do this yourself, many people prefer to seek professional guidance to ensure it’s done correctly and reflects their wishes.
What if you’re not sure whether yours is up to date?
If you already have a POA, it’s still worth reviewing. Are the people you named still the right choice? Have your circumstances changed? Like any part of your financial plan, Powers of Attorney benefit from periodic review.
Next Step: Let’s Talk
If you haven’t yet put a Power of Attorney in place or you’re not sure if yours is current, please don’t hesitate to get in touch. These documents may never be needed. But if they are, you and your family will be immensely glad you had them ready.
You can book a 15-minute no-obligation call below to discuss your situation.