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Empower your loved ones with a power of attorney.
The Power of Attorney: Understanding Its Importance and Benefits
Age has nothing to do with becoming disabled and unable to manage your affairs, so Parminder Makkar Corporation encourages people to appoint a power of attorney early.
– Don’t wait until it’s too late: get a power of attorney today.
The power of attorney concept can be a little challenging to grasp for the uninformed. So we are here with this article to make sure you have the right understanding of THE POWER OF ATTORNEY and its benefits.
WHAT EXACTLY IS THE POWER OF ATTORNEY?
A power of attorney (POA) is a legal document that grants someone the authority to act on behalf of another person in certain legal and financial matters. The person granting the authority is referred to as the “grantor” or “principal,” while the person receiving the authority is known as the “attorney-in-fact” or “agent.”
For a power of attorney over property, the grantor must be mentally competent, at least 18 years old, and at least 16 years old for a power of attorney over personal care.
POAs tend to fall into two categories in Canada ->
General
A general power of attorney has restricted decision-making authority, is valid for a certain period, and only applies when the grantor is mentally competent to make his own decisions.
Enduring
An enduring or ongoing power of attorney gives the agent full power to act on the grantor’s behalf in the event of the grantor’s mental incapacity or any other circumstances specified in the POA.
Benefits of the Power of Attorney
Understanding the importance and benefits of a power of attorney can help individuals make informed decisions about their legal and financial affairs. A power of attorney can give you peace of mind and assist you in avoiding legal issues, whether you are aging, planning for the future, traveling overseas, running a business, or simply managing your affairs.
Here are some key points to consider:
Flexibility
It's crucial to select attorneys you can entirely rely on when appointing a power of attorney. This is because designating a POA provides you with total freedom to be adaptable. A single attorney or multiple attorneys may be appointed. If one of your attorneys is not available, you can instruct them to function independently or to make decisions jointly. A power of attorney may be less likely to be misused fraudulently if there are two or more attorneys.
Avoiding Court Proceedings
A properly executed power of attorney can help avoid the need for court proceedings, such as guardianship or conservatorship, which can be costly, time-consuming, and emotionally draining. With a power of attorney in place, the agent can step in and act on the principal's behalf, minimizing the need for court intervention.
Decision-Making Authority
A power of attorney allows the principal to designate someone they trust to make decisions on their behalf. This is particularly useful in situations where the principal becomes incapacitated, such as due to illness, injury, or old age. Without a power of attorney, crucial decisions related to healthcare, finances, and other matters may require court intervention.
Continuity of Affairs
By designating an attorney-in-fact through a power of attorney, the principal ensures that their affairs can continue to be managed smoothly in their absence or incapacity. It can include paying bills, managing investments, filing taxes, accessing bank accounts, and making important healthcare decisions. Without a power of attorney, these tasks may become significantly more challenging or even impossible.
Peace of Mind
Creating a power of attorney provides peace of mind for the principal or grantor and their loved ones. Knowing that someone they trust is legally authorized to handle their affairs can alleviate stress and ensure that their wishes are respected. It also helps prevent potential disputes among family members regarding decision-making authority.
Legal and Financial Management
A power of attorney can be particularly valuable for individuals who have complex legal and financial affairs. It enables them to choose an expert to handle particular issues, ensuring that their interests are adequately managed.
Below are some examples that show the importance of the power of attorney, and with this reference, you can get an idea of how POAs can help you make your future a better and more secure one.
Example 1
Kevin and his wife jointly own a modest business. They both have a power of attorney document that names the other as their agent. Kevin just got sick and missed several months of work. The power of attorney allowed his wife to run the company daily and make sure it kept paying the bills for their family.
Example 2
Real estate investor John is the owner of several rental homes. In his durable power of attorney document, he designated his elder brother as his agent. Following a recent accident, John is now completely unable to manage his affairs. John’s real estate assets continued to support him because of the power of attorney, which allowed his brother to manage his properties, collect rent, and take care of any required repairs.
Example 3
Elly, a senior citizen, is the lone resident. In her power of attorney forms, she nominated her grandson as her agent to assist her in managing her money and making medical decisions if she is unable to do so. Elly recently fell and was unable to take care of her business for several weeks. Her grandson was able to assist her with bill paying and medical care management because of the powers of attorney, ensuring that she got the care she required and preventing any financial difficulties.
WHY CHOOSE PARMINDER MAKKAR NOTARY CORPORATION?
It’s important to consult with a qualified attorney to create a power of attorney that aligns with your specific needs and complies with the legal requirements in your jurisdiction. The attorney can guide you through the different types of powers of attorney available and help you make informed decisions to protect your interests and ensure the smooth management of your affairs when needed.
We, PARMINDER MAKKAR NOTARY CORPORATION, understand the value of developing a comprehensive estate plan that takes into consideration your specific requirements and objectives. To help you build a plan that safeguards your loved ones and reflects your preferences, our knowledgeable estate planning attorneys and staff can walk you through the process of drafting a power of attorney and other estate planning paperwork