Life is unpredictable, and circumstances can arise that leave you unable to manage your affairs directly. Early planning for such possibilities is essential to preserve peace of mind and ensure someone can make decisions on your behalf if necessary. Medical issues can become more challenging if you do not entrust someone with a power of attorney in Alberta.
However, there can be confusion about the enduring power of attorney for Alberta residents, as it is not the only type of POA. Though most approaches rely on enduring POA, other circumstances may warrant a different approach. Here’s what to know.
What Is an Enduring Power of Attorney?
The enduring POA is the most common type and the option chosen by the vast majority of individuals. You must have the mental capacity to make decisions at the time of creating and signing this document. This POA may begin immediately and allow the attorney to make decisions on your behalf, or it may only come into force when you lose capacity.
It “endures” through the loss of capacity and ensures that someone still retains the capability to act on your behalf. Without an enduring POA in place, your family may need to spend significant time and money going to court to appoint someone to act as your trustee in the event that you lose capacity. This process can be avoided with an enduring power of attorney.
Note that power of attorney only grants specific decision-making capabilities, primarily those actions related to financial decisions or those relating to property. Someone granted power of attorney cannot make medical decisions on your behalf; this requires a different kind of directive.
An enduring power of attorney is a highly useful option that saves your family time and reduces stress should you lose capacity.
What Is a General Power of Attorney?
In some circumstances, you may wish to empower someone to make financial decisions on your behalf even when you retain the capacity to act on your own. You can, of course, still exercise your decision-making power at any time. However, this power terminates the instant you lose your capacity to make decisions, and the designated attorney will not be able to continue managing your affairs.
Which Solution Should You Pick?
Why might you choose an option other than an enduring power of attorney? The other types of POA can be helpful in limited circumstances, such as when you want to entrust the management of your financial affairs to someone when you cannot or do not wish to act directly, or when you require some assistance. For example, a more general or time-limited approach can be ideal if you plan to travel abroad or if you’re injured or hospitalized but still retain your mental capacity. Such an approach helps manage your affairs when you may not have the time or energy to do so yourself.
However, as we’ve seen, the enduring power of attorney is the better option for long-term planning and peace of mind because it covers the circumstances in which you can no longer act on your own behalf. For example, if you become incapacitated, someone with enduring power of attorney in Alberta can ensure your spouse or children continue to receive support and that you continue to meet any ongoing financial obligations.
Find Support for Smart Planning for the Future
At Lypkie Henderson, we take pride in supporting our clients with thorough planning for unknown circumstances in the future through the delegation of the power of attorney. While there are times when you may wish to only grant this power for a limited amount of time or in narrow circumstances, long-term peace of mind often requires a well-written document that designates who acts in your stead when you do not have the capacity to do so.
Find out how to safeguard your affairs and see your wishes respected with this approach today. To learn more about the enduring power of attorney in Alberta, speak with our team now.
