Risks of DIY Powers of Attorney
Common Problems with DIY Powers of Attorney
Powers of attorney can appear simple, but improperly prepared documents can create significant problems when they are eventually needed. Some common issues include:
Assuming that a power of attorney is the only incapacity planning document you need. An enduring power of attorney generally deals with legal and financial matters. It does not give your attorney authority to make healthcare decisions for you. A representation agreement should also be considered as part of a complete incapacity plan.
Improper execution. Powers of attorney are subject to specific signing and witnessing requirements. A document that is not properly executed may not be effective when it is needed.
Failing to address important powers. Depending on your circumstances, the document may need to address matters such as support for dependants, compensation for your attorney, gifts to family members or charities, and other financial arrangements.
Questions about authenticity or capacity. Poorly prepared or executed documents may create uncertainty about whether the document is genuine or whether the person making it had the required capacity at the time it was signed.
Problems using the power of attorney for real estate transactions. Additional requirements may apply where an attorney will need to deal with land or register documents through British Columbia's land title system.
These are only some of the problems that can arise.
What Happens if You Do Not Have a Power of Attorney or your Document was Improperly Prepared?
If you become incapable of managing your financial affairs without a valid enduring power of attorney in place, your family will not automatically have authority to deal with your property or finances.
Depending on the circumstances, it may become necessary to use another legal process to obtain authority to manage your affairs. This can include an application to court to have someone appointed as the committee of your estate.
A committeeship application is considerably more expensive, time-consuming, and intrusive than putting an appropriate incapacity plan in place while you are capable.
Contact Me
If you would like assistance putting an enduring power of attorney, representation agreement or last will and testament in place as part of your planning, please contact me.
