(NC)—A Power of Attorney is a legal document that gives someone else the power to act on your behalf. This person, though not usually a lawyer, is called your “attorney.”
An individual may give a Power of Attorney for Property if they want someone to help manage their finances or are worried about becoming unable to manage them. This can be granted for a limited time if, for example, the individual is planning an extended absence from the country.
“Property” includes an individual’s money, home, and all other assets.
Unless an individual limits their attorney’s authority, that person’s power is limitless, except to make a will or assign a new Power of Attorney. The attorney can act regarding banking, signing cheques, buying or selling real estate, and buying consumer goods.
A Power of Attorney for Property does not permit an attorney to make decisions about an individual’s personal care. For example, an attorney cannot decide where someone will live or the medical care they will receive. To appoint someone to make such decisions, requires a Power of Attorney for Personal Care.
A Continuing Power of Attorney for Property allows an attorney to make decisions on an individual’s behalf indefinitely, if the person becomes mentally incapable of doing so. To be valid as a Continuing Power of Attorney, the legal document must be named as such, or it must state that it gives the attorney the power to continue acting for someone if they become mentally incapable.
A Continuing Power of Attorney for Property takes effect as soon as it is signed and witnessed unless otherwise stated. For example, if it is needed to take effect only if an individual later becomes incapable of managing their finances, they should ask their lawyer to make this clear.
To give a valid Continuing Power of Attorney, an individual must be 18 years of age or older and mentally capable of doing so. That means they must:
– know what property they have and its approximate value;
– be aware of their obligations to the people who depend on them financially;
– know what they are giving their attorney the authority to do;
– know that their attorney is required to account for the decision he or she makes for your property;
– know that, as long as they are mentally capable, they can cancel the Power of Attorney;
– understand that if the attorney does not manage the property well its value may decrease; and
– understand that there is always a chance their attorney will misuse his or her authority.
It’s important to note that if an individual is incapable of managing their property, they may be capable of giving a Continuing Power of Attorney. For example, someone may not remember how much their monthly pension cheque is, but does know that they get one and want their daughter to handle it.
Anyone without a Power of Attorney should review their options with a lawyer.
The Alzheimer Society of Ontario can assist with their samples called, Powers of Attorney and Will Planning Guides.
Contact the society at at 416-847-8913 or e-mailing, cbradley@alzheimeront.org.
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