An enduring power of attorney is an important estate planning tool that allows you to designate someone to manage your financial and property affairs on your behalf, even if you lose the mental capacity to make such decisions yourself. However, there is a common misconception about power of attorney in Alberta: the idea that this document remains in effect for the person you have entrusted it to, even after you pass away. This understanding is incorrect, and this mistaken belief can affect estate planning if the issues at play aren’t fully understood. What do you need to know?

Power of Attorney Ends at Death

Granting power of attorney can provide peace of mind in the event of unforeseen circumstances. However, a POA only remains effective as long as you are alive. Your attorney immediately loses the ability to make financial or property-related decisions once you pass away. POA is very useful while the individual is still living, especially if incapacitated. Yet, it is not an effective solution for estate management after death.

A power of attorney matters for estate planning: it provides a safeguard for carrying out your financial wishes when you cannot do so yourself. However, it is ultimately only one part of the estate planning process. An effective plan implements the power of attorney alongside a well-written will and plans for the administration of your estate after death.

Why Having a Will Matters

While an enduring power of attorney offers a means of managing your financial affairs during your life when you cannot, a will lays out the directions for how your estate should be managed after death. The will is the cornerstone of effective estate planning, as it provides the framework for the next steps when the power of attorney ends.

Dying intestate, or without a will, can lead to problems and hardships for families. As the power of attorney ends upon death, a will outlines the next steps. Without a will, the probate process is more complicated, and it may take time for the family to go through the courts to obtain authority to act for the estate. The will allows families to avoid that process while also making it easier to address immediate financial needs.

Setting Up for Effective Estate Administration

Working with experienced legal professionals allows you to develop a will that covers all the most important elements of estate management following death. It allows you to decide how to provide for your family, how to divide the remaining estate assets, how to define your funeral wishes, and more. One key factor in developing a will is choosing an individual to administer your estate, also known as the executor or the personal representative. You can designate the same person to hold enduring power of attorney and to administer your estate, which can allow for continuity and simplicity during a difficult time. Remember, though, these are still two different roles.

This person should be an individual you trust. For example, spouses may designate their surviving partner as the executor while also providing alternative options in the event the spouse predeceases them. A lawyer can assist you in discussing your options and selecting the individual best suited to manage your affairs after your passing.

Building a Comprehensive Estate Plan

Granting power of attorney in Alberta is an important step in planning for a future in which you may not be able to make decisions for yourself. Developing a will ensures your family can continue to follow your wishes after you die. Together, both elements contribute to a more comprehensive and airtight estate plan that delivers peace of mind to you and your family. At Lypkie Henderson, our estate planning lawyers can help you craft an enduring power of attorney, build an effective will, and ensure that your family has a clear path forward in the future. Our team stands ready to provide you with practical insights and estate planning services today. Speak with us now to learn more.