Power of Attorney (POA) is all about delegating all or some of your powers to a trusted party. You will need a document clearly stating your reason for this delegation and the person (or institution) you want to carry on your affairs on your behalf.
At Cube Law, our Power of Attorney lawyers in Surrey and other regions of British Columbia help you draft this document and delegate your responsibilities seamlessly. We work in your best interest and ensure that you choose the right agent.
Our lawyers also help you choose from the different types of POAs according to your circumstances. There are four major POAs you can prepare – General POA, Limited POA, Enduring POA, and Springing POA.
Let us quickly understand them:
General Power Of Attorney
This POA gives your agent (the person chosen to manage your affairs) broad powers. It authorizes them to act on several matters regarding your financial, legal, administrative, and business affairs. The only area where your agent won’t have authority would be healthcare.
Limited Power Of Attorney
As the name suggests, a limited POA gives your agent the authority over a specific area or task. For example, if you are travelling and want to conduct a real estate deal, you can delegate this authority to a trusted agent. They will review your contract with you and sign it on your behalf.
Enduring Power Of Attorney
This document empowers an agent to handle your affairs only when you are no longer capable of doing so. You can specify the possible instances in the POA that may leave you incapable. Such circumstances include mental incapacity, hospitalization (temporary or permanent), and other related matters.
Springing Power Of Attorney
A springing POA allows you to give powers to your agent either from a specific date onward or after a specific event occurs. It does not come into effect immediately after you sign it. You will continue managing your operations and affairs until the mentioned event occurs.
A Power of Attorney in Surrey can be misused in many ways and you should be careful about it. The agent you choose may use your funds for personal gains. They may (knowingly or unknowingly) make decisions beyond your POA’s scope. There may also be a conflict of interest between the provisions of the document and other parties directly or indirectly associated with you. Your POA lawyer will help you and your family deal with all such misuses and disputes.
Preparing a Power of Attorney in BC can cost you anywhere between $100 and $1,000. It depends on the type of POA, the complexity involved, the time it takes to prepare the document, the number of meetings with the lawyer, and other related factors.
It all depends on your situation. If you want your agent to look after a specific event in your absence, you can prepare a limited POA. If you want to give them more and immediate powers, you should go for a general POA. If you fear losing mental capacity, you can sign an enduring POA.
What is Power of Attorney (POA)
A Power of Attorney (POA) is a legal document that allows an individual (known as the “principal”) to appoint someone else (the “agent” or “attorney-in-fact”) to act on their behalf. The agent may be given broad or limited authority to make legal, financial, or other types of decisions on behalf of the principal, depending on the terms of the POA.
A POA can be used in a variety of situations, such as when the principal is traveling and needs someone to manage their affairs, when the principal is unable to handle their own affairs due to illness or disability, or when the principal simply wants to delegate authority to someone else.
There are different types of POAs, including general POAs, which grant broad authority to the agent to act on behalf of the principal in a variety of matters, and limited POAs, which restrict the agent’s authority to specific tasks or situations. In addition, there are durable POAs, which remain in effect even if the principal becomes incapacitated, and springing POAs, which only become effective under specific circumstances, such as when the principal becomes incapacitated.
It’s important to note that a POA is a powerful legal document and should be carefully considered and drafted with the assistance of an attorney.
A General Power of Attorney empowers an agent(s) with broad powers to act on behalf of the principal in a variety of matters. A general POA typically gives the agent the authority to make decisions and take actions on behalf of the principal in financial, legal, and business matters, such as managing bank accounts, buying or selling real estate or other property, signing contracts, filing taxes, and making investment decisions. However, it’s important to note that a general POA does not allow the agent to make decisions on behalf of the principal with respect to healthcare or medical treatment. The agent also has certain obligations under the Power of Attorney Act.
Unlike a General POA, which grants broad authority to the agent, a Limited POA restricts the agent’s authority to a specific task or situation. For example, a Limited POA may be used to authorize someone to sign a real estate contract on behalf of the principal, or to manage a specific bank account or investment portfolio.
The scope of authority granted under a Limited POA can be customized to fit your specific needs, including specifying the period during which the POA will be effective, or any conditions or restrictions on the agent’s authority.
Limited POAs are often used where the principal needs someone to handle a specific task or transaction, but does not want to grant broad authority to the agent. For example, a Limited POA may be used to allow a family member or trusted advisor to handle a specific financial transaction in a specific situation.
It’s important to work with a lawyer to create a Limited POA that clearly outlines the scope of authority granted to the agent and the specific terms and conditions under which the POA will be effective
What is Enduring Power of Attorney?
Enduring Power of Attorney refers to a legal document that authorizes someone else to make decisions on your behalf in case you are unable to do so. The term “enduring” means that this power of attorney remains valid even if you become mentally incapacitated or unable to handle your affairs.
Typically, an enduring power of attorney covers important matters such as financial, and legal decisions, including managing bills, investments, and Real Estate. This type of power of attorney can prove useful in situations where you are temporarily or permanently unable to make decisions, such as when you are hospitalized, or in cases of permanent incapacity.
It is essential to choose a reliable individual to act as your attorney.. Regularly reviewing and updating your enduring power of attorney is also highly recommended to ensure that it accurately reflects your current circumstances and preferences.
SPRINGING POWER OF ATTORNEY
A “springing power of attorney” (POA) is a legal document that allows an individual (the “principal”) to authorize someone else (the “agent” or “attorney-in-fact”) to act on their behalf, but only under specific circumstances.
Unlike a regular power of attorney, which becomes effective immediately after it’s signed, a springing power of attorney only comes into effect under certain conditions or at a specific future date, as specified in the document. For example, a springing POA may stipulate that the agent can only act on the principal’s behalf if the principal becomes mentally incapacitated.
Springing POAs are often used as a way to protect the principal’s interests while they are still capable of making their own decisions, but provide a safety net in case they become unable to manage their own affairs. However, they can be more complicated to set up and execute than regular POAs, as the conditions for activation must be clearly defined and documented in the agreement.
Choosing the right POA for you
With Cube Law Corporation, we can help you understand what kind of POA you need and guide you through the different processes. Whether it’s financial, childcare or healthcare, we’re here to help you through
We know life can be challenging. Unforeseen circumstances and unplanned events can mean big changes. That’s why we’re here. We bring the right support, guidance, advice and assistance to help you navigate the tough times…and make life just a little bit easier to handle.
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