Appointing someone to act as your attorney under a Power of Attorney gives that person the authority to make financial decisions and to execute documents on your behalf if you are not capable of doing those things yourself.
Once appointed, your attorney will have significant responsibilities which include the following:
- Your attorney has a duty to act honestly and in good faith.
- Your attorney must manage your financial affairs.
- Your attorney must keep records of all transactions.
- Your attorney cannot co-mingle your assets with anyone else’s assets, i.e. they must be kept separate.
- Your attorney may not transfer or gift assets to anyone unless the transfer or gift has been authorized in the Power of Attorney document or if the nature of the gift is in line with gifts you made when capable, there will be sufficient assets remaining to meet your needs and the annual total of such gifts does not exceed 10% of your taxable income for the previous year or $5,000, whichever is less.
Your attorney must always act in your best interests, taking into consideration your current wishes, beliefs, values and personal needs. Your attorney must also encourage your involvement in decision-making whenever possible.
If an attorney breaches these duties they can be charged with a criminal offence such as forgery, breach of trust, or theft, or they can be named in a civil law suit.
FAQ
1) What laws govern how a Power of Attorney can be used in B.C.?
In B.C., the Power of Attorney Act is the provincial law that governs how a person (the “adult”) can legally authorize another person (the “attorney”) to make financial and legal decisions on their behalf.
3) When does a Power of Attorney come into effect?
A Power of Attorney comes into effect on the date it’s signed (unless the document states otherwise) and in the case of an Enduring Power of Attorney (the most common type) it continues to be valid even if you become mentally incapable.
2) Who should I appoint as my attorney?
You should appoint someone you trust to manage your bills, bank accounts and property. This might be a spouse, child, parent, relative or close friend.
For more information on Powers of Attorney and to book an appointment, please call us at 250-590-6226 or use our contact page.
Deborah A. Todd
