As a business owner, entrepreneur, manager, boss – you know how hard it is to find a ‘perfect hire’. Full-time, part-time, even a supplier you can trust and rely on, it takes some thought to work through the goals, the roles and the skills you want your ‘perfect hire’ to have and fulfill.
Now, imagine you had to find a perfect hire to replace YOU. Imagine you needed to name one person who would meet your goals, stay focused on your priorities, succeed in your role and walk in your shoes.
That’s your Power of Attorney.
I’m not going to launch into a lengthy, comprehensive definition of Power of Attorney, but I want to make clear what a POA is, is not, and why your POA could quite possibly be the most important person you ever hire.
Power of Attorney is granted through a legally-recognized document that names the person, persons or institution you grant authority to make decisions and act on your behalf when you are unable to do so for yourself.
Your POA, essentially, becomes YOUR head and hands, and walks in your shoes. They must be competent and trustworthy enough to take on extensive responsibilities, ones that carry significant liability if not carried out properly.
In Ontario, powers of attorney cover two areas:
- Personal care. Your POA makes decisions about your health, care and welfare, and
- Property. Your POA makes decision about all things 'owned', including money, real estate, home ownership, digital assets, banking assets, investments, and bills.
A POA is not...
- An Advanced Directive for health care
- A Living Will
- The same as appointing an executor
In my opinion, choosing a POA is the most important decision within your estate plan because a POA takes affect while you’re still here, living and breathing, incapable of taking care of business yourself.
(It’s awful to say it, but the truth is that, by then, it’s too late to choose. Decisions must be made regardless. If you haven’t named a POA, a family member or friend may be delegated, or step forward to take control. And if nobody suitable is willing or available, the government steps in.)
It bears thinking seriously about this ‘perfect hire’. Whom do you trust enough to represent you? Who has the time and strength to walk in your shoes as they continue to walk in their own? Who will make competent and careful decisions about where you’ll live, what happens to your home, what medical care happens or doesn’t happen, what you’ll eat, wear and do?
Married couples and those in significant relationships commonly appoint each other. Youth over 18 (if they’re thinking ahead, are encouraged to think ahead, or, like our son, were gifted the cost of setting up a POA for their 18th birthday) might nominate their parent(s). For those who are single, divorced, widowed… the decision can be much harder.
It’s a big decision – too big to resolve in this post. So if it’s time for you to put a POA in place or you’re questioning the person(s) you’ve already appointed, I have some ways for you to keep learning:
1. Keep listening to this month’s episodes of I'm a Millionaire! So Now What? (listen & subscribe here).
2. Join me for a series of Spring Estate Planning Seminars.
These are hands-on, practical, informational workshops to learn important estate planning considerations and strategies, so you’re prepared and use your right to make your wishes clear. (Downtown Ottawa location details will be sent to you when you RSVP.)
RSVP here to join me for
Your power of attorney – quite possibly the most important person you will ever hire
Wednesday, April 24, 2019 | 2 - 4pm
Your executor – what you need to know before you hire yours
Wednesday, May 22, 2019 | 2:00 p.m. – 4:00 p.m.
Essential family conversations – protecting yourself and your wishes
Wednesday, June 12, 2019 | 2:00 p.m. – 4:00 p.m.
3. Apply here for a Personal Prosperity Discovery Session to learn how to build your Roadmap to Real Riches - a fresh take on wealth management that optimizes how you spend, save & share your wealth, including the important preparations involved in estate planning.
4. Email me here for your copy of the RBC Brochure “Your reference guide for acting as an attorney under a power of attorney.”