This blog post was written by: Taylor Sergeant, Associate Estate and Trust Consultant, Scotiatrust Ottawa

When it comes to estate planning, few decisions carry as much weight as selecting your Power of Attorney (POA). This person will have the legal authority to make financial or personal decisions on your behalf.

Unfortunately, NHL defenseman Jack Johnson learned this lesson the hard way.

The Jack Johnson Case: A Cautionary Tale

Jack Johnson, once a rising star in the NHL, signed a $30.5 million contract with the Los Angeles Kings in 2011. But just a few years later, he filed for bankruptcy, claiming less than $50,000 in assets and over $10 million in debt.

Why?

Because he gave financial power of attorney to his mother, Tina Johnson.

Here’s what happened:

• Johnson’s parents, Jack Sr. and Tina, took control of his finances in 2008.
• They fired his professional agents and advisors, isolating him from financial oversight.
• After gaining POA, they borrowed millions in high-interest loans against his future earnings.
• They spent lavishly buying Ferraris, upgrading homes, and traveling extensively.
• Johnson was kept in the dark, told to “focus on hockey” while his finances crumbled.
• By 2014, creditors were garnishing his NHL paycheques, and he was forced to file for bankruptcy.
• He hasn’t spoken to his parents since.

This wasn’t just mismanagement, it was financial exploitation by the very people he trusted most.

What to Look for in a Power of Attorney

To avoid similar outcomes, here are key qualities to consider when choosing your POA:

• Trustworthiness: Choose someone with a proven track record of honesty and integrity.
• Financial Literacy: They don’t need to be a CPA, but they should understand basic financial principles and know when to seek expert advice.
• Accountability: Look for someone who welcomes oversight and is willing to document decisions.
• Independence from Conflict: Avoid individuals who may have personal financial interests that could conflict with your own.
• Communication Skills: Your POA should be able to clearly explain decisions and keep you informed.
• Emotional Stability: They should be able to make rational decisions under pressure, especially in crisis situations.
• Willingness to Serve: Ensure they understand the responsibilities and are genuinely willing to act in your best interest.
• Legal and Ethical Awareness: They should respect the boundaries of their authority and understand fiduciary duties.

Final Thoughts

Jack Johnson’s story is heartbreaking, but it’s also a powerful reminder that estate planning is not just about documents, it’s about people. The wrong POA can devastate your financial future. The right one can protect it.

If you’re unsure who to appoint, consult with a trusted estate professional and remember, you can always revise your POA as your life and relationships evolve.