The What ?
A Power of Attorney (POA) is a legal document that allows you to appoint someone you trust, known as an "attorney," to manage your financial or legal affairs on your behalf.
In British Columbia, this can include tasks like paying bills, managing investments, or buying and selling property. The person granting the power is called the "donor."
There are different types of POAs in British Columbia:
1. General Power of Attorney : This gives the attorney broad powers to handle all of the donor's financial and legal matters, but it becomes invalid if the donor doesn't have his mental capacity anymore.
2. Enduring Power of Attorney : This continues to be valid even if the donor becomes mentally incapacitated, making it a crucial tool for planning for future incapacity.
3. Limited Power of Attorney : This grants the attorney the power to act on the donor's behalf for specific tasks or for a limited time period.
The Why/When ?
Creating a Power of Attorney (POA) can be important for several reasons :
Planning for Incapacity: A POA allows you to designate someone you trust to manage your affairs (eg; financial affairs) if you become incapacitated due to illness or injury. This ensures that your financial and legal matters are handled according to your wishes even if you're unable to make decisions yourself.
Convenience: If you're traveling, living abroad, or otherwise unavailable, a POA can empower someone to handle your financial transactions, such as paying bills, managing investments, or buying and selling property on your behalf.
Health Care Decisions: A specific type of power of attorney document, known as a Healthcare Power of Attorney or Medical Power of Attorney, allows you to appoint someone to make medical decisions for you if you're unable to communicate your wishes.
Business Continuity: If you own a business, a POA can ensure that operations continue smoothly in your absence by granting a trusted individual the authority to make business decisions.
Creating an Estate Plan: A POA is a crucial component of a comprehensive estate plan. It helps ensure that your financial and legal matters are managed according to your wishes, complementing other estate planning tools like wills and trusts.
Legal Protection: Having a POA in place can provide legal protection for both you and your designated agent, as it clearly outlines the scope of authority and responsibilities.