It’s easy to take our parents for granted while growing up. They start out as a constant presence in our lives, always there when we need a helping hand, a soothing word, and a healthy dose of unconditional love. As adults, it can be surprising how much our parents also need us.

One of the questions that might come up as your parents get older is whether or not you should become their Power of Attorney. We might be tempted to automatically say yes because the thought of not providing anything they need is inconceivable. However, Power of Attorney comes with sweeping authority and a rather large amount of responsibility.

Needless to say, it’s not a choice either you or your parents should make lightly. In this post, we’ll explore what being a Power of Attorney to your parents really means.

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Power of Attorney and Real Estate

Before we dive in too deeply, remember that we are real estate agents, not lawyers, and this post is for informational purposes only, not legal advice. With that understood, what does Power of Attorney (POA) actually mean? In short, it means you are being granted the authority to make significant, potentially life-altering decisions for someone else.

In Ontario, there are two types of POA to be aware of. Your parents may ask you to fulfill one or both of these roles.

1. Power of Attorney for Personal Care:

This means you will be the one to make decisions about your parents personal and medical care if and when your parents are no longer able to do so.

2. Power of Attorney for Property:

You have the authority to make financial decisions on your parents’ behalf, including buying and selling real estate. Unless otherwise stated, this power begins as soon as POA is assigned.

Before signing a Power of Attorney document, you must be sure of two things. Are you willing to handle all of the tasks and responsibilities of the role? Declining might not be easy. However, you’re doing your loved ones a disservice if you can’t fully commit to the task.

Secondly, do you have the ability to do the job effectively? If you can’t, either due to time constraints or lack of financial and organizational skills, it might be better to have someone else step in. As we mentioned earlier, this is a critical decision that none of you should make without a long and in-depth discussion.

An understanding of the current market will help you when selling on behalf of someone else. The posts below can help:

• What’s The Fastest Way To Sell Your House In Hamilton?
• What Season Should You Sell Your Home In Hamilton Or Burlington?
• Should I Buy First Or Sell First?

When Do You Need Power of Attorney?

There can be some confusion over when or if a Power of Attorney designation is required. It’s not just for when a person becomes too sick or confused to handle their own affairs. It can also grant you authority to act in case your parents are not in a position to make significant decisions.

The reason behind it could be because they’re in the hospital or it might be that they’re basking in the sun somewhere on an extended vacation without access to email or phone calls. Whatever their reasons, you’ll need Power of Attorney if you’re going to be signing any legal or financial documents on your parents’ behalf.

• If they want you to sell the house while they’re away without any involvement, you’ll need to sign the listing agreement, evaluate offers, and handle all of the financials of the transaction.
• If all they want is your advice and physical labour, you may not need Power of Attorney status.

Whether selling as Power of Attorney or Executor, a knowledgeable and compassionate real estate agent is a must. Learn more in How to Hire a Real Estate Agent for an Estate Sale.

How Do You Make Power of Attorney Official?

When you agree to be a Power of Attorney, you are legally bound to act ethically and in their best interests at all times. If both you and your parents decide to proceed, your next best step is to contact a lawyer to finalize the details and outline their wishes, along with any limitations they wish to impose on the contract.

Legal assistance is not required to assign a Power of Attorney. However, it is strongly recommended to protect both you and your parents as well as to be sure everyone understands what is expected of them.

Are your parents or relatives getting ready to downsize? The posts below can help you begin to plan:

• What Are The Best Condos In Dundas When Downsizing?
• Why Should You Downsize To A Condo In Ancaster?
• Where Are Hamilton’s Best Communities For Retirees?

What Rights Do Your Loved Ones Have Under Power of Attorney?

No matter how much you trust someone, the idea of handing off control of your life is a frightening prospect. It’s understandable that your parents might be hesitant to grant Power of Attorney even when they believe it is the right course of action.

You can help by reminding them of all of their rights under the designation. We’ve already mentioned that you should act in their best interests and respect their wishes. This is not just the right thing to do; it is legally required under fiduciary duty.

Secondly, while assigning Power of Attorney allows someone to make decisions for you, it does not stop you from acting on your own behalf – unless you become incapacitated. A Power of Attorney is entitled to payment for their services, but they cannot steal from you or transfer money from your account to theirs.

Fortunately, most Power of Attorneys don’t act maliciously, especially when they are a member of the family. If conflicts arise, they generally stem from uncertainty about the right thing to do rather than an unwillingness to do it.

The Value of Clear and Frequent Communication

The best protection you can give your parents is to help them make their wishes known. Get the details down in writing, fully explained, and keep them in a safe place.

For example, if they state in no uncertain terms that they don’t want their house sold before a certain date, you are not going to list without their knowledge and approval. You will use your authority to follow their directions. These clear instructions will help everyone involved understand the part they play, both now and in the future.

Do you have more questions about the logistics of selling a house for someone else? Our Hamilton and Ancaster real estate agents are happy to help. Reach out to 905-512-5323 or email hello@theoreillygroup.ca for more information.

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