For those of us who work in the industry, we often use terms like estate planning, wills and powers of attorney. This blog is meant for those who need a refresher or perhaps are new to these terms!
Generally, estate planning refers to the steps we take to plan for the management and administration for our assets in the event that we become incapable of doing so ourselves, either by virtue of incapacity or death. Typically, estate planning includes, but is not limited to, preparing a Will (or Wills) and Powers of Attorney (although some may consider the preparation of powers of attorney to be incapacity planning).
What is a Will?
In simple terms, a Will is a document that sets out your wishes for how you want your assets to be dealt with after your death. It can also include information on or specify any wishes you may have for your funeral arrangements. In certain situations, it is possible to have more than one Will.
For more information on general considerations when thinking about your Will, read my blog of November 8, 2021.
What is a Continuing Power of Attorney?
Generally, a Continuing Power of Attorney provides a person (or persons), known as your attorney(s) for property, with the authority to deal with your assets while you are still alive. It is possible to limit the authority of your attorney(s) for property to specific assets or provide them with broad authority over all of your assets. For instance, your attorney(s) for property may be able to manage your finances on your behalf. As such, it is very important to carefully consider who you wish to appoint as your attorney(s) for property.
It should be noted that a Continuing Power of Attorney can be effective immediately upon execution, unless it is limited.
The Substitute Decisions Act outlines the criteria for executing a Continuing Power of Attorney.
What is a Power of Attorney for Personal Care?
Generally, a Power of Attorney for Personal Care provides a person (or persons), known as your attorney(s) for personal care, with the authority to make decisions regarding your health while you are incapable. For instance, if you get into an accident and are in the hospital unable to make medical decisions, your attorney(s) for personal care would be able to make these decisions for you. Your attorney(s) for personal care may also be able to make decisions for you in the event that you are deemed incapable of making such decisions by a medical professional.
Once again, it is important to carefully consider who you wish to appoint as your attorney(s) for personal care because this person (or persons) will be empowered to make medical decisions for you in the event that you cannot make them yourself.
The Substitute Decisions Act outlines the criteria for executing a Power of Attorney for Personal Care.
This blog only provides general information. It is recommended that you obtain legal advice from a lawyer who specializes in preparing these documents.
Thank you for reading.