Preparing an Enduring Power of Attorney is one of the most important steps you can take to protect yourself if you ever become unable to manage your own financial affairs.

It allows you to choose someone you trust to step in and make financial and legal decisions on your behalf if you lose capacity.

But many people have an important follow-up question.

The short answer is yes.

In some circumstances, an Enduring Power of Attorney can be challenged.

Fortunately, disputes are not the norm.

Most attorneys carry out their responsibilities honestly and in accordance with the wishes of the person who appointed them.

However, understanding when concerns may arise and how to reduce those risks is an important part of good estate planning.

Why Might Someone Challenge an Enduring Power of Attorney?

Most challenges do not begin because of dishonesty.

They begin because family members have different understandings of what should happen.

Imagine this situation.

Linda appoints her oldest son as her attorney under an Enduring Power of Attorney.

Several years later, she develops dementia.

Her son begins managing her finances, paying her bills, and arranging repairs to her home.

Her daughter, who lives in another province, notices money being withdrawn from Linda's accounts and becomes concerned.

She wonders:

• Is the money being used for Mom?

• Is my brother keeping proper records?

• Is he acting in Mom's best interests?

Even when everything is being handled appropriately, a lack of communication can sometimes create uncertainty.

Common Reasons Challenges Arise

Every family's circumstances are different, but concerns often arise when someone believes:

• the person lacked mental capacity when they signed the document

• they were pressured or influenced into signing it

• the attorney is acting outside the authority granted

• financial decisions are not being made in the person's best interests

• estate assets appear to be missing

• proper financial records are not being maintained

These situations do not automatically mean something improper has occurred.

However, they may lead family members to seek legal advice about the circumstances.

Does Appointing Someone Mean They Can Do Whatever They Want?

No.

An attorney has significant responsibilities.

They are expected to act honestly, carefully, and in the best interests of the person who appointed them.

Their role is not to use the person's money as if it were their own.

Instead, they are responsible for managing financial affairs in accordance with the authority granted by the Enduring Power of Attorney and applicable Alberta law.

Good record keeping, careful decision-making, and transparency often help prevent misunderstandings.

A Family Example

Consider another example.

Michael appoints his daughter as his attorney.

After Michael loses capacity, she begins paying his monthly bills, managing his investments, and arranging for renovations to make his home safer.

She keeps detailed records of every transaction and regularly updates her siblings about significant financial decisions.

Because she communicates openly and documents her actions, everyone understands how Michael's money is being used.

The result is not only effective financial management but also greater confidence among family members.

How Can You Reduce the Risk of Future Disputes?

The best time to prevent conflict is before it begins.

When preparing an Enduring Power of Attorney, consider:

• Choosing the Right Attorney

  • Select someone who is trustworthy, organized, financially responsible, and willing to take on the role.

  • The most convenient choice is not always the best choice.

• Discussing Your Wishes

  • Many disputes arise simply because family members never knew what their loved one wanted.

  • Having open conversations while you are able can provide valuable clarity later.

• Keeping Your Documents Current

  • Life changes. Marriage, divorce, the death of a chosen attorney, or significant changes in family relationships may all be reasons to review your Enduring Power of Attorney.

• Working With an Estate Planning Lawyer

  • A properly prepared document that reflects your wishes and complies with Alberta law can reduce uncertainty and help your family understand your intentions.

What Should Family Members Do If They Have Concerns?

It can be upsetting to believe that someone may not be managing a loved one's financial affairs appropriately.

At the same time, assumptions should not be made based on incomplete information.

Sometimes what appears unusual has a perfectly reasonable explanation.

If concerns arise, obtaining legal advice can help family members understand the available options and determine the most appropriate course of action based on the specific circumstances.

Every situation is different.

Thoughtful Planning Is the Best Protection

Most Enduring Powers of Attorney never become the subject of a dispute.

The vast majority simply allow trusted family members to step in during a difficult time and ensure bills continue to be paid, investments are managed, and financial affairs remain in order.

By choosing the right attorney, communicating your wishes, and preparing a carefully drafted document, you can greatly reduce the likelihood of future misunderstandings.

Planning ahead not only protects your finances but also helps protect the relationships that matter most.

We're Here to Help You Plan With Confidence

An Enduring Power of Attorney is one of the most important documents in any estate plan.

Choosing the right attorney and preparing the document carefully can help ensure your financial affairs are managed according to your wishes if you ever lose capacity.

At Bridgestone Law, we help individuals and families throughout Calgary and Alberta prepare customized Enduring Powers of Attorney that reflect their goals, protect their interests, and provide peace of mind for the future.

If you have questions about preparing or reviewing an Enduring Power of Attorney, we would be pleased to help.

Contact Bridgestone Law today to schedule an estate planning consultation.