There comes a time in everyone’s life when it becomes necessary to focus on the future. That means not just your future but also that of your family and the estate you may one day leave behind. Effective estate planning with lawyers can provide a framework for stability and peace of mind if you begin now. It is vital to consider how to protect your estate and ensure you can provide for your own care in the future.
Wills and Estates lawyers in Edmonton can help. It is always possible that we may one day lose the ability or the faculties to make critical decisions. Placing that capacity into the hands of someone you trust could make the difference. There are several legal instruments available that you may use to empower others to make such choices on your behalf, but differentiating between them can prove confusing.
To help demystify these processes, let’s explore the differences between such instruments, including personal directives and powers of attorney.
What is a Power of Attorney?
A power of attorney is a legal document that authorizes another individual to make decisions on your behalf, specifically with respect to property and finances. More formally referred to as an Enduring Power of Attorney (EPA), this instrument only relates to legal, financial, and property-related decisions. The individual that you grant an EPA to may make decisions on your behalf when or if you become incapacitated and lose the capacity to make such choices on your own.
There are two different forms of an Enduring Power of Attorney commonly used today. The first is called an Immediate Enduring Power of Attorney, which comes into effect immediately after you sign it. This means that someone with an immediate EPA can make decisions on your behalf at any time, before or after your incapacity. A Springing EPA only becomes effective when you lose capacity and cannot make sound financial decisions for yourself. Each tool has its uses, but many consider a Springing EPA as a safety net to protect their interests in the event of known or unknown future health issues.
It is recommended that you consult with a lawyer to draft your Enduring Power of Attorney to ensure that you maintain protection over your financial interests and that your EPA is valid and binding under the laws of the Province of Alberta.
How is a Personal Directive Different?
Where a Power of Attorney concerns only legal or financial decisions, a Personal Directive (PD) is different. First, PDs only come into effect when you are found to lack capacity to make your own decisions; there’s no immediate equivalent here. Second, PDs only apply to non-financial aspects of an individual’s life. These are often decisions related to your healthcare, such as life-saving or prolonging care, but also include other decisions, such as where or who you live with, or your personal activities.
As with a Power of Attorney, it is always recommended to consult with a lawyer to execute a PD to ensure that you can name someone you trust and that your wishes can be explicitly written out and protected through the PD.
Which Solution Should You Use?
Power of Attorney and Personal Directives have their place in well-considered estate planning. Since they deal with very different aspects of your life, it is worth exploring both solutions.
Granting a power of attorney can be crucial in ensuring the proper administration of your finances and their use for your care or other needs in the event of incapacity.
Likewise, personal directives can ensure your wishes are known and carried out when you cannot make those choices for yourself. For example, you may wish to have a Do Not Resuscitate order on file, or you may file a directive outlining palliative care preferences.
What Happens Without a Personal Directive or POA?
In the event that you lose capacity without a personal directive or power of attorney, a family member or friend would need to apply under the Adult Guardianship and Trusteeship Act. This scenario can create challenges and legal headaches for your family, who may need to seek an official court order to become your guardian and trustee. Court orders may also be necessary simply to make specific healthcare decisions or choices related to living arrangements. This process is costly and time-consuming with a stressful public element; planning with Will lawyers in Edmonton can help avoid such scenarios.
Investigate the Right Solutions for Your Estate
Don’t leave the future to chance. With support from the experienced estate planning lawyers at Lypkie Henderson, you can explore Power of Attorney and Personal Directives that align with your goals and expectations. Create a safety net and embrace the peace of mind that comes from creating guidelines for decisions in your future.
