Trusteeship vs. Enduring Power of Attorney_ The Cost of Not Planning Ahead

1. Trusteeship vs. Enduring Power of Attorney: The Cost of Not Planning Ahead

2. In life, unforeseen events can change an individual’s circumstances in an instant. Events may occur that leave someone without the capacity to make important decisions for themselves, and someone else must instead step up to make those choices. Signing an enduring power of attorney in Alberta empowers someone to take such actions on your behalf. Unfortunately, an enduring power of attorney must be signed at a time when you have capacity, and there’s no easy way to predict when an incapacitating event may occur. Therefore, proper planning for the future is essential to protect an individual’s best interests through a power of attorney in Alberta. However, not everyone engages with such a process, and failing to do so can leave individuals and their families stuck with the complex, expensive, and time-consuming process of obtaining trusteeship.

3. Consider how that process can unfold as we take a closer look at why a power of attorney is a less stressful solution. What Happens if Someone Doesn’t Grant Power of Attorney in Alberta?

4. Power of attorney refers to authorizing a trusted individual to make financial decisions on your behalf when you cannot. When an individual loses the capacity to direct their own financial matters, a family member or loved one cannot simply step into this role and begin managing those matters directly without an enduring power of attorney in force. Without such planning, families must follow procedures outlined by the Adult Guardianship and Trusteeship Act. This process relies on the courts and can be slow-moving, even when circumstances may require quick decision making. Without a power of attorney, families may not be able to make important decisions on time. What Is the Trusteeship Process like?

5. If a family must go to the courts to obtain trusteeship over an adult’s financial matters, prepare to spend a significant amount of time waiting for the process to resolve. The Government of Alberta states online that a typical trusteeship application takes about 6 months to process. Though you may make an application for an urgent order of trusteeship, the turnaround time may still be lengthy, along with the expenses incurred. There are two ways to apply for trusteeship, but both are relatively slow-moving.

6. In one method, you may make a “desk application.” Desk applications don’t require you to go to court, so they don’t incur as many legal fees. However, consideration of the application can take between 8 and 12 months. The other available option is to make an application by hearing, which does require court appearances. These applications take around 2 to 3 months. Applications require multiple forms, including a capacity assessment report for the incapacitated individual, an application and affidavit from the applicant, as well as a notice of application for a hearing, if not using a desk application. These must be filed with the clerk of the Court of King’s Bench and may include an application fee of up to $300. Other court-related costs may apply.

7. These documents must be served on the Office of the Public Guardian and Trustee, as well as all family members that have an interest in the proceedings. The applicant will also have to go through a background check. What Makes Power of Attorney a Better Option?

8. With an enduring power of attorney, an individual makes arrangements in advance of any incapacitating event and designates who should take over responsibility for financial decisions. This only comes into force in pre-defined circumstances, such as a medical emergency or diminished mental capacity. Power of attorney documents lay out what decisions an individual may handle and what specific events qualify. There is no requirement to go to court, make applications, or pay fees. When the power of attorney becomes active, the named individual can begin making decisions right away. With everything arranged early, families enjoy peace of mind and a more straightforward means of navigating an already difficult situation—one that does not involve months in the courts.

9. Find Help Planning for the Future Today Without an enduring power of attorney in Alberta, the trusteeship process is the path families must take to acquire the ability to make decisions on behalf of an incapacitated individual. As we’ve seen, this process is expensive and time-consuming compared to working with a lawyer to set up power of attorney in Alberta ahead of time. At Lypkie Henderson, our firm has a deep level of experience in estate planning, power of attorney creation, and other areas that can help set up a more secure future for you and your family. Speak with us today to learn more about the next steps you can take.