Why Powers of Attorney are Important
First let me introduce myself, I am the Senior Law Clerk here at Peffers Law. On the long weekend in May of 2012 my whole world crashed when we could not get a hold of my older brother. My mother and I went to his home to find him unconscious on the floor of his apartment. The police, fire department and medics arrived on scene and the ambulance took him to the local hospital where he was placed into a medically induced coma. The next morning, he was rushed to the hospital in the neighboring jurisdiction, as all his major organs were failing, and he required acute care.
We didn’t think that he was going to survive. The doctors told us that my brother had contracted encephalitis which ultimately resulted in him having an acquired brain injury. There were no warning signs, no symptoms!
What are the types of Powers of Attorney?
There are two types of Powers of Attorney: Powers of Attorney for Personal Care and Powers of Attorney for Property.
Powers of Attorney for Personal Care are used when making decisions with regard to your healthcare, nutrition, hygiene, safety and housing accommodations. While Powers of Attorney for Property are used in making decisions with respect to your financial matters – investments, paying bills and property management.
Powers of Attorney come into effect when the Grantor (the one who created the Powers of Attorney) has been deemed incapable or whenever the Grantor wishes to put them into effect. My brother, in his mid-twenties at the time of his brain injury, already had a Will and Powers of Attorney in place because I had educated him of the importance of these documents. Even when he questioned me “I am only 20 years old, do I look like I need Powers of Attorney?” “Yes!” I exclaimed and we arranged to have them drafted and signed. Six years later here we were putting them into effect, and I remembered thinking that I had never been more grateful to be in the legal field, I knew the importance of having estate planning in place!
When my brother “woke up” from the induced coma he was not the same. We were dealing with a loss, because the way the injury affected my brother, he was an entirely different person, both physically and mentally. It was devastating. I essentially had a new brother, my mother a new son.
Why do I need Powers of Attorney?
Your life can change in an instant like my brother’s did. Having Powers of Attorney are crucial because they ensure that your financial, medical, and personal affairs are managed if you are unable to manage them on your own. Your Power of Attorney for Property allows a trusted person to handle your financial matters, ensuring your bills are paid on time and managing your property on your behalf. While your Power of Attorney for Personal Care entrusts someone to make medical decisions on your behalf, ensuring timely and appropriate care.
Powers of Attorney prevent the costly and time-consuming process of making a Court Application for Guardianship. It provides personal control by letting you choose your decision-maker and maintains business continuity if you own a business. Overall, Powers of Attorney offer peace of mind and flexibility, allowing your affairs to be handled efficiently and in line with your preferences.
In my brother’s case having his estate plan in place was a huge sense of relief for us. We knew what his instructions were and that he wanted us to act on his behalf. It was clear and documented. We were able to instantly deal with his health care team of physicians, rehabilitation staff, dieticians, behavioral staff and hospital staff.
We were (and still are) his only advocates fighting for his rights and proper care. And when it felt like each institution just wanted him to be discharged and off to the next, we had to stand up and be assertive to ensure he received the quality of care he deserved. Thinking back now, as difficult as it was going through all the motions, it would have been so much harder if my brother had not taken my advice and planned ahead.
What happens if I don't have a Power of Attorney?
If you don’t have Powers of Attorney in place, several potential issues could arise, particularly if you become incapacitated or otherwise unable to make decisions for yourself. The possible consequences could be the need to bring a Guardianship Application, the involvement of the Public Guardian and Trustee if there is no suitable person willing or able to act as your guardian, a delay in decision making or delay in payment of bills, and the possibility of family disputes.
If my brother did not have his Powers of Attorney ready our family would have needed to file an Application for Guardianship of his property. This process is time-consuming, expensive (upwards of $10,000.00), and emotionally taxing for everyone involved. Moreover, through the Court process you may have little to no say in who is chosen and the person appointed may not be the individual you would have selected to make decisions for you.
Why Powers of Attorney are important- Final Thoughts
Reflecting on my family’s experience, the importance of having Powers of Attorney in place cannot be overstated. Powers of Attorney ensure that your financial, medical, and personal affairs are managed in the event of your incapacity, providing peace of mind and control over critical decisions. They prevent the costly, time-consuming, and emotionally draining process of Court appointed guardianship and guarantee that someone you trust can act on your behalf.
You are not invincible! Don’t think that this could never happen to you! I learned that life can change in an instant, and that instant can last forever. Please take it from me, take the time to talk with your family and friends. Find an Estate Planning professional and help protect yourself and your loved ones! Please book a FREE Case Assessment Call today to find out how we can help!
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