Jenny and Mary, who are widows, are long time friends who meet over tea to talk about their lives. They talk about their futures—about making wills and what will happen to their money if they are unable to make their own decisions. Both Jenny and Mary decide to find some information about what they may need to do to plan for the future.

Jenny has a friend at the Society for the Retired and Semi-Retired and Mary has a librarian friend who always helps her find information. They each agree to make some phone calls and do some research.

What are the most important legal documents?

What happens if you do not have these documents?

What are the most important legal documents?

Jenny and Mary learned that there are three very important legal documents that would ensure their wishes are known. Once prepared, Mary and Jenny would want to let others know that these documents had been completed and where they could be found in an emergency.

The most important legal documents are:

• Enduring Power of Attorney - a document in which you appoint another person or persons to act on your behalf in relation to your financial matters. The document will state when it will become effective, which will be at a specific time in the future, or when a specific event occurs which includes your mental incapacity or infirmity.

• Personal Directives - a document stating who can make decisions about your personal health and how you want your health and other personal matters to be handled should you no longer be able to make these decisions.
  

• Will - a document stating how and to whom you want your assets and property distributed upon your death.
  

What happens if you do not have these documents?

Jenny and Mary found out that if they took no actions to prepare for their future care, the law could make the following arrangements:

• Guardian - a person appointed by the court to take care of your personal matters if you are no longer able to make your own personal decisions, including those about health care. A guardian is appointed when you do not have a personal directive, or when the personal directive does not cover a particular situation. Although the guardian could be a member of your family or a friend, it is still possible that this person would not fully know your wishes as to what you would want to happen to you.

• Compulsory Care Order - when a guardian has been appointed by the court, the guardian can request that you be kept in a place of care for any period of time up to three years.

• Trustee - a person appointed by the court to take care of your financial affairs if you are no longer able to do so. Trustees are appointed when you do not have an enduring power of attorney or when an enduring power of attorney does not deal with a particular matter. Although a trustee can be a family member or friend, it is still possible that they might not know what your wishes would have been.

• When a person dies without making a will (dying intestate), the law provides rules for the division of property and assets. This could mean that someone you didn't intend to might obtain your property, and that others, to whom you did wish to give items, might get little or nothing.

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Updated: November 21, 2003
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