Power of attorney, explained
A will works after you are gone. A power of attorney works while you are alive. It may be the paper your family needs first.
What it is.
A power of attorney is a paper that names someone to act for you. The person you name is called your agent. In some places, they are called your attorney.
That word here does not mean a lawyer. It just means the person you trust to act for you.
Two kinds most people need.
- A financial power of attorney. Your agent can pay bills, manage bank accounts, file taxes, and handle your home. In Ontario, this is called a continuing power of attorney for property.
- A health care power of attorney. Your agent can talk to doctors and make care choices if you can't. In Ontario, it is a power of attorney for personal care.
Some places pair the health paper with a living will. A living will says what care you want near the end of life.
Why it matters.
Picture a stroke or a bad fall. You are alive but can't sign a check or speak with your doctor.
Without a power of attorney, your family may need to go to court to get the right to help. With one, your agent can step in right away.
"Durable" and "continuing."
These words mean the power keeps working if you lose the ability to decide. Check that your document says it.
Who to choose.
- Someone you trust with money and with hard choices.
- Someone who lives close enough to help, or who is good at managing from far away.
- Someone who will follow your wishes, even if they would choose differently.
- A backup, in case your first choice can't do it.
You can name different people for money and for health. Many families do.
How it is signed.
The rules depend on where you live. Some places need a notary. Some need two witnesses. Some allow either.
In Ontario, each power of attorney is signed with two adult witnesses. No notary is needed.
In many US states, you sign the financial power of attorney before a notary. Some states let you meet the notary online. That is remote online notarization, where your state allows it, never for wills.
Talk to your agent.
Tell the person you named. Tell them where the paper is kept. Share your wishes about care. A short talk now saves a lot of guessing later.
When it ends.
A power of attorney ends when you die. From then on, your will takes over. The person you named in your will is in charge.
Our plans include both.
Every Succession Plan estate plan includes a financial power of attorney and a health directive. Each uses the right name for where you live.
We give you a signing checklist for each one.