Your greatest financial planning gap may not be financial at all. One giant gap are absent or out-of-date powers of attorneys. Remember – there are two distinct powers of attorney: one for personal care and one for property. Over the holiday season, while you are with your families, I encourage you to have the tough conversation around incapacity, your wishes and the wishes of those around you. It is a necessary conversation that left unspoken can leave a sizable emotional and administrative burden on your family.
What happens if you don’t have these document in place?
- In terms of personal care decisions, the decision maker is determined by a list outlined inSection 20 of the Health Care Consent Act. Doctors, for example, start at the top of the list and work their way down until someone is identified to give direction. If there is a disagreement between interested parties someone may appeal to the Consent Board at the Public Guardian and Trustees. This may arrive if the children object to the approach taken by the spouse.
Up to date powers of attorneys for property and personal care eliminate these issues.
The cost of a lawyer sometimes holds people back from having Powers of Attorneys drawn up. The Ontario Attorney General provides a Power of Attorney for Care and Power of Attorney for Property kit that you can compete without a lawyer. It is easy and straightforward.
Going into the New Year, make a commitment to cross off Powers of Attorney from your financial to-do list.
