Who will manage your finances if you cannot?

If an individual loses the ability to manage their financial affairs, some people believe the spouse can simply take over. However, that’s only permitted if the spouse was named in a power of attorney document (mandate in Quebec).

In a power of attorney, you appoint someone to manage your finances if you suffer a cognitive impairment. You may choose your spouse, your child, another family member, a close friend or any individual you trust.

Consider the consequences

Without a power of attorney, conflict may arise if two or more individuals believe they should be the one in charge of your financial life. Also, they must apply to the provincial court to be approved as your representative, a process that takes time. Meanwhile, you could become vulnerable to financial fraud.

You're never too young

If you only associate cognitive decline with dementia at older ages, it’s easy to put off getting a power of attorney. But even individuals at a younger age can suffer a cognitive impairment from an incapacitating illness, a stroke, or an accident that causes a traumatic brain injury (such as a recreational sport or car accident).

It can never be too soon to get a power of attorney, but it can be too late. You must be of sound mind to legally sign the document. Anyone who puts off the task risks suffering a cognitive impairment that renders them incapable of taking the necessary steps.