What Happens if You Do Not Have Powers of Attorney?

Understanding Guardianship and Incapacity in Ontario

Many people understand the importance of having a Will, yet far fewer appreciate the importance of Powers of Attorney.

A Will only takes effect after death. Powers of Attorney, by contrast, are intended to operate during your lifetime if you become incapable of managing your own affairs.

Many individuals assume that their spouse or adult children will automatically be able to make financial and healthcare decisions for them if they become incapable. In Ontario, this is not always the case.

If you become incapable of managing your finances and do not have a valid Continuing Power of Attorney for Property, your loved ones may be required to apply to the Court to be appointed as your guardian of property.

Similarly, if important personal or healthcare decisions must be made and no valid Power of Attorney for Personal Care exists, disputes may arise regarding who has the authority to make those decisions on your behalf.

Guardianship proceedings can be time-consuming, expensive, and emotionally difficult for families. They often require legal assistance, medical evidence regarding incapacity, and Court involvement at a time when loved ones are already coping with stressful circumstances.

In addition, if the Court is asked to appoint a guardian, you lose the opportunity to personally choose who will make decisions on your behalf. The individual ultimately appointed may not have been the person you would have selected yourself.

Properly prepared Powers of Attorney allow you to decide in advance who will manage your financial affairs and who will make personal and healthcare decisions if you become incapable. These documents can help avoid uncertainty, reduce the likelihood of family conflict, and ensure that decisions are made by individuals whom you know and trust.

Incapacity can arise unexpectedly as a result of illness, injury, accident, or age-related cognitive decline. For this reason, Powers of Attorney should not be viewed as documents intended only for seniors. Every adult should consider whether these important documents form part of their estate plan.

A comprehensive estate plan generally includes not only a Will, but also Powers of Attorney for Property and Personal Care.

If you would like assistance preparing or reviewing your Powers of Attorney, please book your FREE CONSULT with Tonelli Estate Law today.

***This article is for general informational purposes only and does not constitute legal advice***