In an earlier article published with the Ontario Bar Association, I addressed why young lawyers should strongly consider making a will. In this article, I will address a related testamentary planning issue, namely why young lawyers should also consider executing power of attorney documentation.
As a starting point, we should distinguish between the two kinds of powers of attorney that are available in Ontario. Under the Substitute Decisions Act, 1992, S.O. 1992, c. 30 (the “SDA”) an adult may grant a power of attorney for property, or a power of attorney for personal care.
Under a power of attorney for personal care, your attorney will have the authority to deal with decisions relating to your health, medical care, and other matters relating to your general well-being. Under a power of attorney for property, your attorney will have the authority to deal with your property and manage your financial affairs (with the exception of making a will on your behalf).
Generally, a power of attorney will be engaged if you become incapable of managing your property or personal care decisions, however it is also possible to grant a power of attorney for property that is effective immediately. Under the SDA, a person who is eighteen years old is presumed capable of entering into a contract and a person who is sixteen is presumed capable of giving or refusing treatment in connection with their personal care.
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