Although some of us may be desperately trying to hold on to summer, fall is undoubtedly in the air. For some reason, fall always seems like the right time to get things in order, maybe even more so than the beginning of a new year. One thing you will want to ensure you have in order is your Power of Attorney for Property (“POA PPY”). If you become incapable or unable to take care of your financial affairs and do not have a valid POA PPY, you may create a very difficult situation for your loved ones. Everyone, regardless of the amount or kind of assets they have, should have a POA PPY. Don’t be confused by the use of the word ‘attorney’ – in Ontario, ‘attorney’ means ‘substitute decision-maker’ and not a lawyer like it does in the U.S.
In a POA PPY, you, the ‘grantor’, can name one or more individuals or a trust company to act on your behalf when you are not in a position to manage your property and financial affairs. This may be due to mental incapacity, illness, physical limitations, or travel. Many people choose to appoint a trusted family member or friend while others choose their lawyer or a trust company. Be sure to name someone who is not only financially astute but organized, trustworthy, and conscientious.
If you grant a broad POA PPY, your attorney can basically do anything that you can do with your property except make or alter your Will. So, for example, he or she can:
- pay bills;
- withdraw cash from bank accounts;
- open and remove items from your safety deposit box;
- file income tax returns; and,
- sell your house.
A POA PPY can be drafted so that it limits the attorney’s authority to certain assets or actions. For example, if you are a business owner, you will likely have a POA PPY to deal specifically with your business interests and a general POA PPY to deal with all of your other property.
If you become incapable of managing your financial affairs and do not have a valid POA PPY, no one can manage your financial affairs. To do so, someone will have to seek guardianship of your property. This can be both costly and time-consuming. If you are unable to act due to an illness or accident, this can add another layer of stress and emotional turmoil to an already difficult situation for your loved ones. In certain circumstances where there is no POA PPY, the Public Guardian and Trustee will step in.
Tom Cruise only had it half right when he immortalized the phrase “Show me the money”. He should have gone on to say “Show me your Power of Attorney for Property”. See an estate planning specialist and sign your Power of Attorney for Property today!
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.