As we approach the end of January, and this month’s blog topic of “reviewing your will”, I thought it appropriate to discuss the topic of powers of attorney as they can seem like an afterthought to the main show, the will. However, powers of  attorney can be an equally important part of a good estate plan and can often go hand-in-hand with preparing a will.

There are two types of power of attorney:

• a power of attorney for property, which permits the attorney(s) to make financial decisions for the grantor. This can include selling real property, managing bank accounts, paying bills and more; and
• a power of attorney for personal care, which enables the attorney(s) to make decisions on behalf of the grantor on matters of health care, nutrition, shelter and hygiene.

Both types of power of attorney grant significant responsibility to the attorneys, and it is  important to be careful in who once chooses for the role. There are considerable benefits to having a power of attorney; most significantly, time, expense and stress can be saved by avoiding the need to have a guardian appointed if the need arises after a person is no longer capable to make a power of attorney.

As with all estate planning tools, there are benefits and risks which need to be weighed on a case-by-case basis. When you next review your will, or if you are planning on having your first will made, consider discussing powers of attorney with your planning professionals and whether either one or both types of powers of attorney could be suitable for you.

Thank you for reading and have a great day.

Raphael Leitz