What is a Power of Attorney?

A ‘Power of Attorney’ (PA) is a legal document which grants an appointed person the lawful authorization and access to make managing decisions on your behalf regarding financial and/or legal matters.

The person whom you, the Donor, decide on, would be referred to as your designated ‘Attorney’; however, that person does not need to be a lawyer by profession. To be clear, a PA can be assigned to anyone of your choosing, as there are different types of powers of attorney to choose from.

A power of attorney in BC must be signed through the witness presence of a Grantor (Notary Public) for the legal document to be in effect. Notary Publics can also assist you in the process of going through the terminology and clauses with your best interests in mind.

Types of Powers of Attorney

In BC, powers of attorney are standardly classified under ‘general’, ‘limited/specific’ and ‘enduring’. (However, there may be different names and distinctive regulations for appointing powers of attorney depending on the province you live in).

What is the difference between ‘Enduring Powers of Attorney’ (Power of Attorney Act, RSBC 1996, c 370) and ‘Non-Enduring Powers of Attorney’?

A ‘Non-Enduring Power of Attorney’ typically terminates by default when the Donor is no longer ‘mentally capable’ due to any illness, accidents and/or age-related issues.

An ‘Enduring Power of Attorney’ includes an “enduring clause” which guarantees the PA to remain in effect for the appointed attorney(s) regardless of the Donor’s mental capacity, until his/her death.

Among these, there are also ‘limited’ or ‘specific’ powers of attorney, in which the appointed Attorney is only granted limited access, authorizations and/or specific tasks as per the contract. In addition, there is also the option of a ‘springing power of attorney’ which leaves the legal document as inactive until a specific condition as listed within the document is met.

When Do I Need a Power of Attorney?

Powers of attorney often function as a preparation or planning tool for important business regards or life matters. These documents are specifically drafted so that your legal and financial matters can still be looked after in situations where you are either physically or mentally unable to tend to them.

As such, you may wish to sign a power of attorney in the following example scenarios:

●      You will be out of town and you need someone to take care of your real estate affairs, such as selling and/or buying of property (See: Non–Enduring Power of Attorney)

●      You are expecting to be absent and/or incapacitated but you are anticipating a return (See: Non–Enduring Power of Attorney)

●      You are experiencing signs of mental and/or physical health changes where you may need to seek for further assistance with your day to day finances (See: Enduring Power of Attorney)

●      There is someone you trust to take care of your legal and/or financial affairs in the potential case of accidents and/or injuries (See: Enduring Power of Attorney)

It should be noted that the people whom you appoint as an attorney have to be over the age of 19 years old and other circumstances may prohibit them to act as your attorney.

Process and Requirement for Signing a Power of Attorney

 

The Process

The procedure of appointing a PA can be simple and straightforward with an assistance from a professional: you would begin by visiting your locally commissioned Notary Public (such as Juris Notary) and make an appointment regarding the appointment of a power of attorney.

Then, legal professional(s) will speak with you regarding terms and clauses as per your instructions. (If there are specific restrictions or requests you’d like to implement within the document, be sure to speak with your Notary Public about this so they may best assist you.) With all signing parties in presence, the document is witnessed and signed before your Notary Public, and can be taken into effect immediately thereafter.

The Requirements

For a PA to be taken into effect, the legal system requires you to be mentally capable during the process of signing the power of attorney.

Changing Your Mind Regarding a Power of Attorney

“What if I want to cancel a power of attorney?”

Powers of attorney are subject to termination upon the request of the original Donor so long as you are still mentally capable. Likewise, your appointed attorney is also allowed to resign from the position. In both cases, written notice must be provided clearly stating the cancellation of the PA.

“What if I want to designate someone else to make financial or legal decisions on my behalf instead?”

Please note that a newly signed PA does not cancel an old one by default. To appoint a new power of attorney, you will need to go through the process by signing a new power of attorney.

Put simply: all powers of attorney can be cancelled at any time, but cancellations must be notified in writing to each of the parties involved in the document.

It’s Never Too Early to Start Planning

For more information on how Juris Notary can help you with the process of appointing a power of attorney, you may wish to click here to read more or by contacting us via phone: 604.416.0211 or email: info@jurisnotary.com.

We would be more than happy to help.