Illness may befall you and affect your ability to manage your personal and business affairs or make decisions about them. Many people have a power of attorney ready to be exercised in such a situation. A power of attorney is a legal document signed by you to authorize a person whom you trust to make decisions for you when you are not able to make decisions for yourself. It may apply to both your personal life and your business life.
What happens if you have not signed a power of attorney and you can no longer make decisions for yourself? A difficult legal situation arises for your business and your family. A business colleague or family member will have to make an application to court in order to make decisions for you. The legislation involved is called the Substitute Decisions Act and it permits a person to become the “guardian” over your personal care and over your personal and business property.
A court application to become a guardian involves a fair amount of legal work. The person seeking guardianship will have to prove that you can no longer take care of yourself and your property. This usually involves affidavit evidence from two doctors. A “Guardianship Plan” must be filed describing how the guardian will look after your personal care. As well, a “Management Plan” must be filed describing how the guardian will manage your business and personal property. These documents are delivered to the Public Guardian and Trustee who acts in your best interest at the court hearing. When the business and personal property involved is of some value, the Public Guardian often requires that the guardian post a bond as security. All of the expenses involved in the court application and in obtaining the bond are paid by you. Needless to say, it will cost you less to have a signed power of attorney ahead of time and it will also be easier on your business colleagues and family members.