Selecting a Power of Attorney (POA) is one of the most critical decisions you can make in managing your affairs. A Power of Attorney is a legal document that grants someone the authority to act on your behalf in financial and legal matters if you become unable to do so yourself. In British Columbia a Power of Attorney does not include health matters.
Who Should Have a Power of Attorney?
Everyone should consider having a Power of Attorney, especially as we age or face health challenges. Even younger adults should think about it, as unexpected accidents, illnesses or events when travelling internationally can occur at any time.
Key Traits to Look for in a Power of Attorney
Appointing a POA takes some thought and consideration. You don’t want to appoint just anyone, as it’s a serious undertaking for the one you appoint. Here are some things you will want to think about.
Financial Acumen
Can they look at a bill and understand it? This helps to manage your finances effectively.
Financial Stability
Are they financially stable? You need someone who won’t be tempted to misuse your funds.
Willingness to Serve
Are they willing to do the job of being a Power of Attorney? Reluctant agents may not perform their duties diligently.
Capability to Manage Affairs
Can they handle your personal affairs? Look for someone who can manage tasks ranging from paying bills to making healthcare decisions.
Availability
Do they have the time to act as your Power of Attorney? Your agent needs to be available when important decisions arise.
Trustworthiness
Are they trustworthy? They will have significant control over your life and assets.
Proximity
Are they in close proximity to you, or do they live far away? Someone nearby can act more quickly in emergencies.
Critical Thinking
Can they think critically about what needs to be done? Decision-making skills are essential.
Reliability
Are they reliable? Consistency and dependability are key.
Rationality
Are they rational? Emotional stability ensures they can make sound decisions under pressure.
Neutrality
Are they neutral, or do they have a personal agenda with your personal affairs? An unbiased POA is less likely to make decisions that benefit them over you.
Communication Skills
Do they have good communication skills? They must effectively communicate with family, healthcare providers, and financial institutions.
Legal and Financial Knowledge
Do they have legal and financial knowledge? While not mandatory, it is beneficial for handling complex issues.
Appointing a Professional
If you don’t know anyone who meets these criteria, you can appoint a professional. Ask your Notary Public, lawyer, or accountant, if this is a service they offer. A professional brings expertise and neutrality but will charge for their services.
What If It’s Too Late?
If it’s too late to appoint a Power of Attorney, but a person still has some capacity consider having a section 7 Health Representation Agreement in place. Although not ideal, it’s better than nothing. It allows for routine management of financial matters but does not allow the appointed person to sell real estate.
The last option is a Committee Order, which is a court appointed guardian for financial, legal and financial affairs. This is an application made to the court which usually requires a lawyer. It is costly and takes a long time, so it’s best to act now and be prepared rather than leaving it to chance.
Choosing the right Power of Attorney is crucial for your peace of mind and the security of your personal affairs. Consider the traits and qualities outlined above to ensure you select someone capable and trustworthy. Don’t delay in making this important decision—prepare now to safeguard your future. Call Carter Notary at (250) 383-4100 to schedule an appointment.