Nobody can predict what life has in store. There may come a time in the future when you do not have capacity to make essential decisions for yourself or you may find yourself in a position where you need assistance in managing your affairs. Thinking ahead and planning can provide you peace of mind and help you prepare for these unforeseen circumstances. Having a power of attorney (POA) in Alberta can protect you.

An enduring power of attorney in Alberta equips a trusted individual with authority to make financial and property-related decisions on your behalf in specific circumstances. Here’s what to know about this legal tool.

What Power of Attorney is Not

One principal factor to bear in mind relates to what a power of attorney does not cover. When you grant power of attorney, you only provide permission for the named individual to make decisions related to finances and property on your behalf. A power of attorney does not grant the ability to make any health-related or personal decisions for you. You’ll need to create a personal directive to empower someone to make such choices.

The Types of Enduring Power of Attorney

Enduring power of attorney is the most common legal instrument to empower someone you trust to make financial decisions on your behalf. As the Donor of the power of attorney, you have options for how the arrangement works and when the person you choose can access those powers.

You may choose to have the POA take effect immediately upon signing, despite the fact that you still have capacity do make your own decisions. Based on your wishes, your chosen attorney may continue to have this power if you become incapacitated, or your incapacity could lead to the termination of the POA. The appropriate choice depends on your specific circumstances and desires.

If you do not want a power of attorney to be effective immediately, you may instead opt for a “springing” power of attorney. This only comes into effect upon a specific event, such as when you become incapacitated and can no longer make your own decisions. You can also specify other triggering events if desired.

What Can Someone with Power of Attorney Do?

Your named “attorney” under a power of attorney has an expansive ability to manage your finances and property, just as you usually do. Generally, the only limitations on those actions are those that you include within the power of attorney document. Typical tasks that someone with POA may manage include:

• Selling real property or purchasing real estate.
• Buying products.
• Signing checks.
• Managing investments such as stocks and bonds.
• Managing bank accounts.

An individual with your power of attorney remains limited to areas of finance and property. They cannot change an existing will or create one on your behalf. They cannot alter the beneficiaries you’ve designated on retirement accounts or insurance policies, and they cannot transfer their power of attorney to another individual.

What Are the Responsibilities of Someone with Power of Attorney?

Someone granted power of attorney has specific duties that they must fulfill in good faith. For example, the individual must act within the Donor’s best interests, especially when selling property or managing investments. The individual must carefully follow all the directives set out in the power of attorney agreement while also remaining within the limitations set out by the Donor. Proper recordkeeping related to transactions and management decisions is also essential for due diligence and maintaining accurate tax reporting for the Donor.

Explore Legal Solutions for Peace of Mind

There’s no way to predict if or when one might lose the capacity to make vital financial decisions. However, getting an enduring power of attorney in Alberta can provide reassurance that someone can act on your behalf in such situations. However, such responsibility requires the careful selection of a trusted individual to handle financial and property-related decisions in the event of your incapacity.

To better understand how granting power of attorney in Alberta works and to explore solutions that match your needs, connect with the team at Lypkie Henderson today. From providing helpful insights to guiding you through the first steps, we’re here to support your needs.