Currently, over 750,000 Canadians are suffering from Alzheimer’s or a similar condition that causes dementia and leads to mental incapacity. One-third of Canadians know someone who has Alzheimer’s, and the situation is only getting worse. According to the Alzheimer’s Society of Canada, it is expected that by 2030, over 1 million Canadians will be living with a form of dementia, including Alzheimer’s; by 2050 the forecast increases to over 1.7 million.
Alzheimer’s is a difficult disease to fight; there are no known causes, and it is not known how to stop its progression. If you, your spouse, or your parents are starting to show signs of disorientation, memory loss, mood or personality changes, or similar symptoms, it is time to visit your doctor. Furthermore, it may be time to put some protections in place to ensure your family’s finances and property continue to be managed properly.
A Continuing Power of Attorney for Property is one common way to protect assets. This is a legal document where a person gives someone else the legal authority to make decisions about their finances if they cannot make those decisions themselves. It is important to know that having a PoA does not stop you from looking after your affairs while you are capable. You can stipulate that the PoA doesn’t come into effect until a certain date or until your doctor provides a letter stating that you are mentally incapable of making decisions.
One of the most significant decisions when considering a Continuing Power of Attorney for Property is who should be the new decision-maker. An Attorney could be granted a great deal of power. For example, if a father names his son the PoA, the son could pay bills, manage investments and real estate, sign documents for the father, and even sell his home. Assigned powers can also be limited, for example, you could provide your Attorney with full decision-making authority with respect to your bank accounts and investments, but prohibit him from making decisions about your real estate.
Anyone over the age of 18 can be named an Attorney. If you appoint more than one person, the two Attorneys will have to make decisions together, unless you specifically give them permission to act separately. If you name two people, there could be the potential for disagreements between them on what to do with your property. If you name your two children, handling your affairs could cause friction between them. To avoid disagreements between siblings, you could also name a Trust Company, which would act as your Attorney for a fee. Any Attorney named is entitled to a payment based on a government-mandated formula, but you can prohibit payment in your Power of Attorney document.
Many serious issues must be considered when granting a Continuing Power of Attorney for Property. Although it is not necessary, I suggest you consult with your lawyer to ensure the document is designed to work in your best interest. If you want someone to discuss your situation with and help you make the best decisions for your family, don’t hesitate to call me.
Have a great weekend,
Tracey & Paige
Source: https://alzheimer.ca/en/about-dementia/what-dementia/dementia-numbers-canada
Photo by Roberto Nickson on Unsplash
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440