Imagine you're involved in a serious car accident.

You're expected to recover, but for several months you're unable to make financial or legal decisions.

Your mortgage payment is due.

Your utility bills continue arriving.

Your investment accounts require attention.

Your business payroll needs to be processed.

Your spouse goes to the bank expecting to access your accounts so they can keep everything running.

Instead, they're told they don't have the legal authority to act on your behalf.

Many people are surprised to learn that marriage alone does not automatically give someone the legal authority to manage another person's financial affairs.

This is exactly why an Enduring Power of Attorney is so important.

It allows you to decide, in advance, who can manage your financial and legal affairs if you become unable to do so yourself.

At Bridgestone Law, we help individuals and families throughout Calgary and Alberta prepare Enduring Powers of Attorney that provide clarity, protect their interests, and give loved ones peace of mind during difficult times.

What Is an Enduring Power of Attorney?

An Enduring Power of Attorney (often called an EPA) is a legal document that allows you to appoint someone you trust to make financial and legal decisions on your behalf if you lose the capacity to make those decisions yourself.

The person you appoint is called your attorney.

Despite the title, they do not have to be a lawyer.

They can be a spouse, adult child, family member, close friend, or another trusted individual who is willing and able to act in your best interests.

An Enduring Power of Attorney only deals with financial and legal decisions.

Healthcare and personal care decisions are covered by a separate document called a Personal Directive.

Together, these documents form an important part of a comprehensive estate plan.

When Does an Enduring Power of Attorney Take Effect?

Many people assume that signing an Enduring Power of Attorney means they immediately lose control over their finances.

Fortunately, that is not how it works.

Depending on how the document is prepared, an Enduring Power of Attorney can take effect immediately or only after a specific event, such as you becoming mentally incapable of managing your affairs.

While you continue to have capacity, you remain in control of your financial and legal decisions.

The document simply provides a plan for the future should circumstances change.

What Decisions Can Your Attorney Make?

The authority granted under an Enduring Power of Attorney depends on how the document is drafted.

Depending on your instructions, your attorney may be able to:

• pay bills and household expenses

• manage bank accounts

• deal with investments

• collect income or pensions

• buy or sell property

• sign legal documents

• file income tax returns

• manage business interests

Because every person's circumstances are different, an Enduring Power of Attorney can often be customized to reflect your specific wishes and priorities.

What Happens If You Don't Have an Enduring Power of Attorney?

This is one of the most important questions to consider.

If you lose the ability to manage your affairs and have not appointed someone through an Enduring Power of Attorney, your loved ones cannot simply step in and take over.

Even a spouse or adult child may not have the legal authority to access your bank accounts, sell your property, or make financial decisions on your behalf.

Instead, your family may need to apply to the Court for a trusteeship order before someone can legally manage your affairs.

This process can take time, involve additional expense, and create unnecessary stress during an already difficult period.

Preparing an Enduring Power of Attorney in advance helps avoid this uncertainty by ensuring someone you trust already has the authority to act if needed.

Choosing the Right Attorney

Choosing your attorney is one of the most important decisions you'll make.

The right person should be someone who:

• is trustworthy

• manages money responsibly

• communicates well

• is organized

• is willing to take on the responsibility

• will respect your wishes

Many people choose their spouse.

Others appoint an adult child, sibling, or trusted friend.

There is no single right answer.

The best choice depends on your family, your finances, and who you believe will act in your best interests.

Common Misunderstandings About Enduring Powers of Attorney

Many people delay preparing an Enduring Power of Attorney because of common misconceptions.

Not necessarily.

Without legal authority, even spouses can face significant limitations when dealing with financial institutions or other organizations.

Unexpected illness and accidents can happen at any age.

An Enduring Power of Attorney is not just for seniors. It is a planning tool for every adult.

A will only takes effect after you die.

An Enduring Power of Attorney protects you while you are still alive but unable to manage your affairs.

Both documents serve different purposes and are equally important.

Many people intend to prepare an Enduring Power of Attorney someday.

Unfortunately, once capacity has been lost, it is generally too late to sign one.

Planning ahead gives you the opportunity to make these decisions on your own terms.

Peace of Mind for You and Your Family

Preparing an Enduring Power of Attorney is about more than legal documents.

It is about protecting your independence while you are able to make decisions and protecting your loved ones if you cannot.

Knowing that someone you trust can step in without unnecessary legal delays provides reassurance for both you and your family.

It also helps ensure your financial affairs continue to be managed according to your wishes, even during unexpected circumstances.

Estate Planning Is About More Than a Will

Many people think estate planning begins and ends with a will.

In reality, a complete estate plan typically includes several documents that work together.

Your will directs what happens after you die.

An Enduring Power of Attorney protects your financial and legal affairs during your lifetime if you lose capacity.

A Personal Directive allows someone you trust to make personal and healthcare decisions on your behalf if you cannot.

Together, these documents help protect both you and the people you care about most.

Plan Ahead With Confidence

No one likes to imagine becoming unable to manage their own affairs.

However, planning for the unexpected is one of the most thoughtful things you can do for yourself and your family.

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

If you are ready to include an Enduring Power of Attorney as part of your estate plan, we would be pleased to help.

Contact Bridgestone Law today to schedule an estate planning consultation.