All You Need To Know About Power Of Attorney in Mississauga
When it comes to estate planning, one of the most important documents you can have is a power of attorney. A POA gives your trusted person the authority to decide on your behalf if you cannot do so yourself. It can be helpful in several situations, such as if you become incapacitated or are out of the country and in need of someone to handle your affairs for you.
To start with, let us first understand the term Power of Attorney (POA). It is a legal binding that gives another person the authority to act on your behalf in situations where you cannot do so yourself. This person is known as your ‘attorney’.
If you live in Mississauga, it is important to know that there are a few different types of POA that you can choose from. The most common type is the general power of attorney, which gives the person appointed authority over all aspects of her life. However, specific types of power of attorney can also be used for specific purposes, such as healthcare or financial decisions.
It is essential to consult with a family lawyer in Mississauga to help you decide which type of POA is right for you and your family. They will be able to explain the benefits and drawbacks of each type and help you choose the POA that suits all of your needs.
Let’s dig deep to understand the power of attorney and some benefits of having one:
Types of Power of Attorneys
There are several types of power of attorney, and each type has different responsibilities.
General Power of Attorney:
A general POA gives the person appointed authority to make all decisions on your behalf. This includes decisions about your property, finances, and healthcare. By the name of it, you can understand that it is a broad document and gives the person a lot of power.
You should implicitly appoint someone you trust as your general power of attorney, as they will have much control over your decision-making power.
Specific Power of Attorney:
On the other hand, a specific power of attorney is more limited in scope. It allows the person appointed to make decisions on your behalf only in specific areas, such as healthcare or finances.
SPOA can be a good option if you want to appoint someone to handle a specific task but don’t want them to have complete control over all aspects of your life. Specificity gives you the power to limit what your attorney can do.
Some examples of specific powers of attorney include:
- Healthcare Power of Attorney: This type of power of attorney gives the person appointed authority to make important decisions about your healthcare on your behalf if you cannot do so yourself.
- Financial Power of Attorney: This type of power of attorney gives the person appointed authority to handle your important finances on your behalf if you cannot do so yourself.
Durable Power of Attorney:
A DPOA is a type of power of attorney that remains in effect even if you become incapacitated. This means that the person you appoint will still have the authority to make decisions on your behalf if you cannot do so yourself. Durability in a power of attorney is important if you want the document to remain valid even if you can no longer make decisions for yourself.
Non-Durable Power of Attorney:
On the other hand, a non-durable power of attorney is ineffective if you become incapacitated. This means that the authority granted to the person you appoint will only last as long as you can decide for yourself. A non-durable POA is typically used for specific tasks or transactions that need to be completed. Remember you can still make decisions for yourself.
Some examples of tasks that could be handled with non-durable power of attorney include:
- Selling a piece of property.
- Signing a contract
- Filing taxes
- Applying for benefits
- Making a will
A POA can be revoked at any time as long as the person who granted a power of attorney is still competent. This can be done by simply tearing up the document or notifying the person appointed in writing that a power of attorney has been revoked.
It is important to note that a power of attorney cannot be used to grant someone the authority to make decisions about your life after you die. For this, you will need to create a last will and testament.
Difference Between Power of Attorney and A Will
It is important to understand the difference between a power of attorney and a will, as they are two documents that serve different purposes.
As we mentioned, a power of attorney grants someone the authority to make decisions on your behalf. At the same time, you are still alive, whereas a will comes into effect after you die and dictates how your assets will be distributed.
A will is not just about the distribution of your asset, but it’s much more than that. It can be used to appoint a guardian for your minor children, designate someone to handle your estate after you die, and more.
Simply put, a power of attorney grants someone the authority to make decisions on your behalf. At the same time, you are still alive, and a will is used to dictate what would happen to your assets after you die.
How Can A Family Lawyer Help?
Suppose you are considering creating a power of attorney. In that case, it is essential to seek the help of a qualified family lawyer.
A family lawyer from a trusted family law firm like Divorcefast can help you understand the different types of power of attorney and decide which is right for your situation. They can also assist you in drafting the document and ensuring that it meets all the legal requirements.
Get in touch with us today to book a consultation with one of our experienced family lawyers.
Now you can easily understand what is Power of Attorney when it can be used and how our Family Lawyers can help you in this process. Make sure you contact us for more details. Also read about: What Should You Know About Your Will And Why It Is Important in Mississauga?