We never want to think of the worst case scenario, but it is something we should for the sake of our loved ones. A power of attorney is a legal document that you would sign to give an individual the authority to manage your financial affairs.
In order for you to appoint an attorney, you must be mentally capable to do so. To be mentally capable means that you have a good understanding of your finances and legal decisions, and you understand your attorney can make those decisions on your behalf. It is a good idea to prepare your enduring power of attorney, in case you are to suffer from a debilitating disease such as mental illness, accident or stroke.
If you do not have a power of attorney document, and you were to lose mental capacity, your loved ones would have to go through a lengthy and expensive process of having a court-appointed committee. Furthermore, there is a possibility the Public Guardian and Trustee could take over your affairs.
A power of attorney is essential for individuals who want to ensure that a trusted individual would be in charge of your financial obligations and help you with your daily finances.