Powers of Attorney: For Financial and Legal Affairs
What is a Power of Attorney?
A Power of Attorney is a legal planning tool that allows you to give the authority to someone to manage your legal and financial affairs if you are away, unavailable or become incapable of managing them yourself. An Enduring Power of Attorney ensures that the powers you grant will continue to be effective even if you become mentally incapacitated. You can appoint a family member, professional colleague or a corporation such as a Trust Company.
Why should I make a Power of Attorney?
Under B.C. law, spouses and family members do not automatically have the right to handle their family member’s financial affairs if they become sick or injured, even if everything is under joint ownership. The family member must apply to court to become Committee of your Estate (guardian). Legal fees can cost up to $5,000 and the process takes several months. The Committee must report to the Public Guardian and Trustee on a regular basis about how he or she is managing your money and a fee is charged for reviewing the records. If no one applies to court, the Public Trustee will manage your affairs. The Public Trustee charges annual fees as well as a fee for ongoing management. A Power of Attorney eases the burden on others, protects your finances, business interests and estate and helps avoid government involvement into your personal and private affairs.
How do I make a Power of Attorney?
It is prudent to obtain professional assistance when preparing a Power of Attorney. For instance, in order to enable your Attorney to deal with real estate assets, it is critical that a proper form of Power of Attorney be drafted which will be acceptable for Land Title Office purposes. Financial intitutions and ICBC also require correctly drafted, notarized Powers of Attorney to permit your Attorney to manage your affairs. A Power of Attorney is a simple and inexpensive way to plan ahead to protect your financial, property and legal interests in the event you are unable to act on your own behalf.
Representation Agreements: For Health Care and Personal Care Matters
What is a Representation Agreement?
A Representation Agreement is a legal planning tool you can use to give authority to someone you trust to make decisions regarding your health care if you become ill or have an accident. It’s a way to make sure your wishes and values will be honoured in the event that you are unable to make health care decisions for yourself. Before the Representation Agreement Act (B.C.) came into force, living wills were used to provide guidance about the wishes of an individual regarding health care directives and personal care issues. The drawback to living wills is that they no legal effect in British Columbia and thus are not binding on physicians, family members or hospitals. A Representation Agreement allows you to legally grant broad powers to a representative to make decisions on your behalf, including specifying your end-of-life care and treatment directives. Your Representative must consult with you, as much as is reasonable, to determine your wishes. If the Representative is unable to determine your wishes, the Representative must follow the personal and health care directives which set out in your Representative Agreement.
Who can make a Representation Agreement?
Anyone 19 years or older can make a Representation Agreement. If you want to make an Representation Agreement that covers such things as end-of-life directives, then you will need to consult with a lawyer who must complete a certificate of consultation for the Representation Agreement to be valid.
Why do I need a Representation Agreement?
Every adult should plan for the possibility that they may become ill or have an accident and be unable to make important health care decisions for themselves. You can specify when a Representation Agreement comes into effect, either upon the completion of all signatures and certificates, a future date or by a later event such as inability to act for oneself.
Under B.C. law, if you are unable to make important health care decisions for yourself, medical professionals must ask immediate family members for consent regarding medical treatment. Family members may not be aware of your health care wishes. In addition, some people prefer to have a close friend or a relative other than their immediate family make to decisions for them. People who become ill without family members able to make decisions for them may have their affairs turned over to the government and be placed under public guardianship. A Representation Agreement gives you control over your future by allowing you to appoint someone you trust to make decisions affecting your quality of life and independence according to your wishes and instructions if the need ever arises.