Estate Planning

Know Thy Power of Attorney

By Hull & Hull LLP

As we age, not only is it prudent to carefully prepare an estate plan, but consideration must also be given to the question of what happens if we become incapable of making financial or medical decisions. While the Substitute Decisions Act sets out the legal requirements for a valid power of attorney for personal care and property, it cannot address who a suitable attorney would be for a particular individual. It is for this reason that great attention and care should be taken to ensure that the attorney selected will, in fact, respect your wishes.

In the case of a power of attorney for property, the attorney has a fiduciary obligation to you and is frequently involved in your private affairs, including your banking, mortgage payments and even deciding how much money you receive on a day-to-day basis. Although there are legal safeguards to ensure that your power of attorney for property is acting in your best interest, such as requiring a formal court audit or passing of accounts to take place, there is still a great deal of trust placed in the hands of your attorney.

Thanks and have a great day,

Allan Socken

Full post as published by Toronto Estate Law Blog on March 27, 2008 (boomark / email).