Beware Of Springing Power Of Attorney: More Trouble
Power of Attorney (POA) is a robust tool to manage your wealth and affairs when you can no longer do so. However, if you do not have enough experience or knowledge in this area, it is important to consider a few things. One such consideration is that of a springing Power of Attorney.
Suppose you approach your lawyer for an enduring Power of Attorney. In that case, they may inform you that the person you want to nominate as the authority will gain the power to manage your affairs from the moment you sign your POA document.
This implies that the transfer of power will not happen when you lose capacity. Such conditions can ruffle some feathers and raise concerns. If you do not want your attorney to receive powers immediately, there is one alternative to this condition: a springing Power of Attorney. Here, your attorney will be eligible to manage your wealth and affairs only after you lose capacity.
As secure as it sounds, this is not the best way to manage your estate. Here is why:
The Curious Case Of Losing Capacity
Losing mental capacity is not a clear and objective occurrence. A person rarely loses their capacity in an instant. You may not know when you have transitioned from being fit to unfit due to a pretty complex spectrum in between.
When you opt for a springing Power of Attorney, your attorney will not have any power to advise or help you with your affairs. If you slowly lose your capacity, such help is critical to ensure that your wealth is managed as per your wishes. You will be officially “incapable” only when your doctor declares so. It may be too late for your attorney to take all matters into their hands by this time.
Mental capacity is tricky. Before going the whole nine yards, you may have enough mental capacity to handle day-to-day matters. This is when you should involve your attorney in matters related to estate management. A springing Power of Attorney will not give your attorney this right and power. As there is no clear line between being fully capable and incapable, things may go wrong when you least expect them.
Time Management
If you opt for a springing Power of Attorney, your attorney may not get the power when they need it the most. Even if your doctor agrees to give an official confirmation about your incapacity, it will take some time for the procedure to get completed. This results in several time management issues.
Even once you are mentally incapable of handling your affairs, your attorney won’t get your doctor’s confirmation immediately. The time this procedure takes may leave a gap in your wealth and estate management. You wouldn’t want your business operations to be hampered by a pending decision regarding your incapacity.
Moreover, proving an individual’s mental incapacity may take a lot of time. If your mental state keeps going to and fro, your doctor will not give the much-needed confirmation unless they are 100% sure about the same. It is now a question of their credibility.
So, limiting the transfer of power until proven mental incapacity is likely to mess up time management for you, your business, and your loved ones.
Confirming Your Trust
A Power of Attorney is a pretty influential document. No one would give it to someone they do not trust. If you transfer this power while you are mentally capable, you can confirm your trust in the concerned person. You can ensure that their way of managing your affairs suits you. If you lose trust in your attorney, you can always change your decision before losing mental capacity.
In the case of a springing Power of Attorney, you and your loved ones will have no option but to be at your attorney’s mercy after your incapacity. Not being able to monitor your attorney managing your wealth and operations is a risky decision to make.
How Should You Resolve This Issue?
Think multiple times before agreeing to a springing Power of Attorney. It is a risky decision that may jeopardize your hard-earned assets. The best and simplest way to resolve this issue is to give your Power of Attorney to an individual you completely trust.
If you transfer the power to someone you trust, you need not worry about them handling your affairs in advance. Even if you opt for a springing POA and you are fine with potential time management issues, you can rely on this person to manage your operations seamlessly.
Another efficient way to tackle this situation is to keep your Power of Attorney to yourself. However, inform your attorney where you have kept it so that they can have it once you lose capacity.
Receive Legal Help From Cube Law To Prepare Your Power Of Attorney
If you are planning to prepare a Power of Attorney and have a suitable attorney in mind, Cube Law will help you prepare the document. Our will and estate planning lawyers in British Columbia will also guide you in choosing the POA type that best suits your circumstances.
(Please note that this content is written only for informative purposes. Do not consider this legal advice from Cube Law. Contact us to learn more about our services and prepare your Power of Attorney.)