Currently there are over 450,000 Canadians over the age of
65 that are suffering from Alzheimer’s or a similar condition that causes
dementia and leads to mental incapacity.
One third of Canadians know someone who has Alzheimer’s, and the
situation is only getting worse. According to the Alzheimer’s Society of
Canada, it is expected that by 2031 there will be over 750,000 Canadians
suffering from Alzheimer’s or a related illness.
Alzheimer’s is a difficult disease to fight; there are no
known causes and it is not known how to stop its progression. If you, your spouse or your parents are
starting to show signs of disorientation, memory loss, mood or personality
changes or similar symptoms it is time to visit your doctor. Furthermore, it may be time to put some
protections in place to ensure your family’s finances and property continues to
be managed properly.
A Continuing Power of Attorney for Property is one common
way to protect the assets. This is a
legal document where a person gives someone else the legal authority to make
decisions about their finances if they become unable to make those decisions
themselves. It is important to know that
having a PoA does not stop you from looking after your own affairs while you
care capable. You can stipulate that the
PoA doesn’t come into effect until a certain date or until your doctor provides
a letter stating that you are mentally incapable of making decisions.
One of the biggest decisions to be made when considering a
Continuing Power of Attorney for Property is who should be the new
decision-maker. An Attorney could be
granted a great deal of power. For
example, if a father names his son to be the PoA, the son could pay bills,
manage investments and real estate, sign documents for the father and even sell
his home. Assigned powers can also be
limited, for example you could provide your Attorney with full decision-making
authority with respect to your bank accounts and investments, but prohibit him
from making decisions about your real estate.
Anyone over the age of 18 can be named an Attorney. If you appoint more than one person, the two
Attorneys will have to make decisions together; unless you specifically give
them permission to act separately. If
you name two people there could be the potential for disagreements between them
on what to do with your property. If you
name your two children, handling your affairs could cause friction between
them. To avoid disagreements between
siblings, you could also name a Trust Company which would act as your Attorney
for a fee. Any Attorney named is
entitled to a payment based on a government mandated formula, but you can
prohibit payment in your Power of Attorney document.
There are many serious issues to be considered when granting
a Continuing Power of Attorney for Property.
Although it is not necessary, I would advise you to consult with your
lawyer to ensure the document is designed to work in your best interest. If you want someone to discuss your situation
with and help you make the best decisions for your family, don’t hesitate to
give me a call.
As always, have a great weekend,
Tracey
Source: Original article written by Terri Williams,
Dundee Wealth Inc.
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