Assigning Power of 华人律师 With Confidence
华人律师: Incapacity planning, ensuring that there’s a strategy in place if you ever become incapable of managing your affairs, is important.
We all know that. Yet, it’s uncomfortable to think about and therefore easy to put off doing.
A key part of incapacity planning is assigning power of attorney (a legal document giving someone else the right to act on your behalf), but it’s also the biggest hurdle. Giving extra thought to who you choose, and what powers they’ll be granted, can give you the peace of mind to complete your plan with confidence.
Choosing your lawyer
Choosing someone you trust to assign power of attorney is essential. Acting as your attorney involves significant duties and obligations. Your attorney’s overarching duty is to act with honesty, integrity and in good faith for your benefit if you become incapable.
The law lays out specific obligations for the person chosen to hold your power of attorney. Among other things, they will:
- explain their powers and duties to the incapable person
- encourage the incapable person, to the best of their abilities, to participate in decisions concerning their property
- foster regular personal contact between the incapable person and supportive family members and friends, and
- keep account of all transactions involving the grantor’s property.
The attorney or attorneys you choose to act on your behalf should know these rules, and be aware of other rules set out in the act as well.
For instance, they’re expected to ensure you have a will and, if so, know its provisions. The main reason for this is that your attorney must not sell or transfer property that’s subject to a specific gift in the will, unless necessary.
The act also contains explicit instructions regarding both required and optional expenditures. Examples of the latter include charitable gifts where an incapable person made similar expenditures when capable and so long as sufficient assets are available. Your attorney should also be familiar with rules covering how or when he or she can resign, what compensation they may be entitled to and the standard of care expected of them.
Safeguarding your estate
You can also build a second opinion directly into your power of attorney documents by appointing more than one person. If you name two or more people, they’ll need to act unanimously unless the document states otherwise.
A joint appointment provides a level of protection in that any appointed attorneys must agree on all actions, while a “joint and several” appointment grants flexibility, allowing any one attorney to conduct business independently.
Many people choose to appoint the same people or trust companies to be both their power of attorneys and their executors. Although you don’t need to do so, the same list of key traits – expertise, availability, accountability and trustworthiness – apply to both roles.
It’s also possible to limit the powers granted to your attorney. If you’d like your attorney to act only for a specified time period (maybe a vacation or hospital stay) or in respect of a specific transaction (the closing of a real estate deal), a limited or specific power of attorney is worth considering.
In the case of a general continuing power of attorney, many people want the document to be used only if and when they become incapable of managing their affairs themselves.
Although the document is effective when signed, it is possible to include provisions in the document itself that defers it to a future date or the occurrence of a specified condition (for example, the grantor has a stroke). These are sometimes referred to as “springing” powers of attorney.
Whichever way you prepare your power of attorney documents, careful consideration of who you choose as well as availing yourself of available safeguards will help ensure your confidence in your incapacity plan.