The Advantages and Disadvantages of Different Types of Power of Attorneys
A power of attorney (POA) is a legal document that allows an individual (the "principal") to appoint another person (the "attorney") to act on their behalf in legal or financial matters. In Canada, there are several different types of power of attorneys, each with its own advantages and disadvantages.
One common type of POA is the enduring power of attorney (EPA), which allows the attorney to make decisions on behalf of the principal even if the principal becomes mentally incapable of making those decisions themselves.
This can be a useful tool for individuals who are worried about losing mental capacity in the future and want to ensure that their affairs are managed properly.
However, it is important to note that an EPA must be put in place before the principal loses capacity, otherwise it is no longer valid.
Another type of POA is the non-enduring power of attorney (NEPA), which is only valid while the principal has capacity.
This type of POA is often used for specific, time-limited purposes, such as when the principal is going to be away from home for an extended period of time and wants someone else to manage their finances in their absence. A NEPA can be useful in these situations, but it does not provide the same long-term protection as an EPA.
A third type of POA is the springing power of attorney, which only takes effect when the principal becomes incapacitated.
This can be useful for individuals who want to maintain control over their affairs for as long as possible, but also want to have someone else step in and take over if they become unable to manage things themselves.
However, because a springing POA only takes effect when the principal is incapacitated, it may not be as useful in emergency situations where the principal needs someone to act on their behalf right away.
In general, the type of POA that is right for a particular individual will depend on their specific needs and circumstances. It is always a good idea to consult with a lawyer who can provide advice and assistance in choosing the right type of POA for your situation.