The Risks of Having — and Not Having — a Power of Attorney

Most of us don’t expect to lose the ability to handle our own affairs — but illness, accidents, or the natural effects of aging can change that in an instant. A Power of Attorney (POA) is a legal tool that lets you appoint someone to make financial and legal decisions for you if you can’t do it yourself.

It’s an important safeguard, but it’s not without its own risks. Knowing the pros and cons can help you decide whether it’s something you should put in place — and how to do it safely.

The Risks of Not Having a POA

If you don’t have a POA and become incapable of managing your financial or legal affairs, no one — not even your spouse or adult children — automatically has the authority to act for you.

In BC, the usual alternative is something called a committee appointment, where someone (often a family member) applies to the Supreme Court to be appointed as your committee. This process is slow, can cost thousands in legal fees, and may require ongoing reporting to the Public Guardian and Trustee. While the application is underway, important matters — paying bills, managing investments, selling property — may be delayed.

There’s also the risk of family conflict. If more than one person wants to be appointed, or there’s disagreement about who’s best suited, the process can become tense and emotionally draining. And remember — if the court chooses, the person appointed might not be who you would have picked.

The Risks of Having a POA

A POA gives your chosen “attorney” broad authority over your finances and property. That can mean everything from paying bills and managing bank accounts to selling your home. While most attorneys act with integrity, there’s always a risk of misuse or abuse — unfortunately, financial abuse of vulnerable adults is a real problem.

Even without malicious intent, mistakes can happen. Your attorney might make decisions you wouldn’t have made, simply because they don’t fully understand your wishes.

Once a POA is in place, there’s limited routine oversight unless someone raises concerns. That’s why choosing the right person is critical — and why it’s wise to set out clear instructions in writing.

Reducing the Risks

The best protection is thoughtful planning:

• Choose someone you trust completely — ideally someone with good financial sense and no conflicts of interest.
• Talk openly with them about your wishes and values.
• Consider naming more than one attorney to act jointly, so there’s built-in oversight.
• Review and update your POA if circumstances change.
• Keep it in a safe but accessible place, and make sure key people know it exists.

A POA is a bit like a seatbelt: you hope you never have to rely on it, but if life takes an unexpected turn, having it in place can make things much smoother for you and your loved ones. The risks are real whether you have one or not — the question is, which risks are you more comfortable taking?