Many people have used the pandemic and the lockdowns as an opportunity to learn something new: a new language, a new skill etc. but it is also the perfect time to make sure you have prepared some essential legal documents.
First, and arguably one of the most essential legal documents you can have, is a Durable Power of Attorney (DPOA). ‘Durable’ meaning once signed, it will survive your incapacity. With this document, you will appoint a person or persons who will be able to step into your shoes and manage your finances in the event of incapacity. For example, if you become incapacitated and are unable to manage your financial affairs, the person you have appointed will be able to pay your bills, manage your portfolio and make decisions to ensure there is no mismanagement of your finances. This is why it is critical that you have a competent attorney make sure that the document will survive your incapacity.
Who can be appointed under a DPOA?
You can appoint anyone over the age of eighteen, this includes your spouse, adult children, family members, colleagues etc. However, when making the decision to elect someone, you should choose a person or persons who you know to be responsible, willing to help and someone you know would fulfill your wishes.
What are the benefits of a DPOA?
In the event you become incapacitated, and you do not have a DPOA, your family will likely have to go to court to pursue a legal guardianship for you. Not only is that process time consuming, it is also expensive. By creating a Durable Power of Attorney, you choose the people who are going to be in charge of your finances if anything were to happen to you.
What about a Will?
A Will is also a very important document, it allows you to appoint beneficiaries and determine how you wish your assets to be distributed. However, it is imperative to remember that a will only takes effect upon death. This differs from a Durable Power of Attorney, as a DPOA controls what happens to your affairs while you are still alive but unable to manage them due to incapacity.
Another document we should discuss is an Advance Healthcare Directive or an Advance Directive. This document is your written directions or wishes in the event you become incapacitated, in a vegetative state or simply unable to communicate your wishes to medical personnel.
Who can be appointed under an Advance Directive?
Any competent adult can create an Advance Directive and, you may appoint anyone over the age of eighteen to follow those directives.
What are the benefits of an Advance Directive?
Creating an Advance Directive allows you to appoint someone to make medical decisions on your behalf in the event of incapacity. It therefore eliminates any confusion as to what your loved ones should do if you become sick and are unable to communicate your wishes to medical professionals.
It also allows you some autonomy in that you are able to answer questions for yourself in advance. For instance, whether you would you want to be kept alive on a ventilator, or a feeding tube? Whether you would you want to try experimental medicine? These are very personal decisions and being able to express your desires to your family and loved ones puts them in a better and more comfortable position to make the best decision for you.
This is why it is always best to make decisions while you still can. Even though we can’t control a pandemic, we can control how we prepare for major financial and medical decisions in the event anything happens to us.
This publication is a general summary of the law. It should not replace legal advice which should be tailored to your specific circumstances.
