Powers of Attorney – An Explanation

Most people have heard the term power of attorney (POA) before but may not fully understand the use and intent of such a document.

A power of attorney allows for the appointment of another person to manage your financial affairs on your behalf.

Usually the power granted is broad and could encompass allowing someone to do anything you could lawfully do such as:

• Operating a bank account to pay bills
• Buying or selling assets
• Depositing cheques to your account

The power can be used while you are still competent to do these things if you specifically asked your attorney to do so as a result of you being out of the country or otherwise indisposed and could also be used if you became mentally incompetent, if the power was an enduring power.

Once granted, the power can be revoked but you must be competent to revoke the power, just as you must be to grant it in the first place.

The point is, financial planning includes making plans for someone to be able to manage your financial affairs if you are unable to do so yourself due to accident, injury, illness or other cause. A power of attorney allows you to do this, and should be part of any estate planning considerations.

Let us know if you have any questions.