Understanding The Role Of A Power Of Attorney In British Columbia
Power of Attorney (POA) is all about bestowing a trusted individual with your trust on a legal level. If you wish to give such powers to an individual in British Columbia, here is everything you need to know about this special document.
What Is Power Of Attorney?
Power of Attorney refers to a document that lets you appoint an individual to manage your legal and financial affairs on your behalf. This individual is called an attorney. According to British Columbia law, your attorney can be granted the power to pay your bills, manage your investments, and buy or sell properties on your behalf. The individual granting a Power of Attorney is called a donor.
What Are The Different Types Of POA In British Columbia?
In British Columbia, you can draft the following different types of Power of Attorney documents:
General Power Of Attorney
This document allows the donor to give their attorney a broad range of powers to handle their legal and financial matters. However, it becomes invalid if the donor loses their mental capacity.
Enduring Power Of Attorney
This POA gives an attorney powers to manage the donor’s legal and financial matters even after the donor loses their mental capacity. This document, therefore, becomes an important tool for the donor to plan for their potential future incapacity.
Limited Power Of Attorney
This power of attorney allows the attorney to manage only specific tasks of the donor for a limited time period.
Why Is Creating A Power Of Attorney Important?
Let us now have a look at the important reasons why creating a Power of Attorney is important:
Planning For Future Incapacity
Creating a Power of Attorney allows an individual to choose a trusted person to take care of their legal and financial matters in case of future incapacity. This can be a physical or mental inability to perform critical tasks seamlessly. If you are unable to make decisions for yourself, your attorney will make them on your behalf, saving you from losses and/or risky decisions.
Temporary Convenience
If you are traveling for a specific period of time, giving a trusted individual limited Power of Attorney makes matters more convenient for you. Until you return, your attorney can handle certain specific matters like paying your bills, managing your investments, and more.
Making Sound Healthcare Decisions
A special type of POA called a Representation Agreement, allows a donor to give a person as their representative, the power to make medical decisions on their behalf. Such decisions are often taken when the donor feels they may not be able to communicate properly during times of illness or a medical emergency.
Ensuring Business Continuity
If you are an entrepreneur, a Power of Attorney ensures that your business operations continue smoothly in your absence. You can grant a trusted individual the authority to make important business decisions on your behalf.
Ensuring Legal Protection
A well-defined Power of Attorney will give both the donor and the attorney legal protection as the document outlines the scope and responsibilities of both parties.
How To Create A Power Of Attorney In British Columbia?
In British Columbia, the main legislation governing POAs includes the Power of Attorney Act and the Adult Guardianship Act. The province also recognizes different types of POA, including General, Enduring, and Limited Power of Attorney.
Any donor can create a Power of Attorney as long as they have the mental capacity to understand the document and its consequences. The POA signing should also be conducted in the presence of ample witnesses by the Power of Attorney Act.
Here are the major steps involved in creating a Power of Attorney in British Columbia:
1. Choosing The Type Of POA
Firstly, you will need to decide the type of document you want to create. Depending on your requirements, you can opt for a General, Limited, Enduring, or other relevant POA.
2. Choosing An Attorney
Once you decide the type of document you want to create, you can choose a suitable individual (attorney) to manage your legal and financial affairs on your behalf.
3. Drafting The Document
You can now draft the Power of Attorney document that clearly outlines all the responsibilities of your attorney. It is better to seek the help of an experienced lawyer in British Columbia to draft a foolproof POA.
4. Signing The POA
Once you have drafted the POA and added all the necessary clauses, you can sign the document in the presence of two adult witnesses. Neither of these witnesses should include the attorney or their spouse. A notary public or a British Columbia lawyer can also act as a witnesses while signing your POA.
5. Registering Your POA (If Needed)
While it is not compulsory to register every POA document, you will need registration in the case of an Endurance Power of Attorney if its scope includes real estate transactions. You will need to register this document with the Land Title Office.
6. Keeping The Document Safe
After completing all the formalities, keep your original POA document in a safe location and provide copies to all the parties involved.
Receive Comprehensive Legal Assistance In Drafting Your Power Of Attorney With Cube Law
If you are planning to delegate responsibilities to a trusted individual in British Columbia, Cube Law will help you draft a foolproof Power of Attorney. Our lawyers will guide you throughout the process, help you add the right clauses, and inform you about the laws and regulations in place.
(Please note that this blog is written for informational purposes only. Do not consider this legal advice from Cube Law. Contact us today to learn more about our services and draft a POA document in British Columbia.)