Wills and power of attorney are legal documents which outlines a person’s wishes regarding the distribution of their assets and the care of their dependents before and after they pass away. Wills are an essential tool for ensuring that one’s assets are distributed according to their wishes and that their loved ones are taken care of. Without a will, the state will determine how the assets are distributed, which may not align with the individual’s desires. It is crucial to regularly review and update a will as circumstances change, such as marriage, divorce, birth of a child, or acquiring new assets.
On the other hand, a power of attorney is a legal document that grants someone the authority to make decisions on behalf of another person. There are two types of power of attorney: general and durable. A general power of attorney allows a person to make financial and legal decisions on behalf of the individual, while a durable power of attorney remains in effect even if the person becomes mentally incapacitated. It is crucial to choose a trustworthy and responsible person to act as a power of attorney, as they will have a significant impact on one’s financial and legal matters.
Your wills and a power of attorney in place can provide peace of mind and ensure that one’s wishes are carried out in the event of incapacitation or passing away. It is also essential to seek the guidance of a legal professional when drafting these documents to ensure they are legally binding and comply with state laws. Additionally, it is crucial review wills and power of attorney to reflect any changes in personal or financial circumstances. By carefully planning and preparing for the future, individuals can ensure that their assets and loved ones are protected.
The majority of Canadians tend to overlook the importance of Wills and power of attorney until it becomes a necessity. It is crucial to understand what a power of attorney entails, why it is essential, and the appropriate circumstances for its utilization.
