A Power of Attorney (POA) is a crucial legal document that allows someone you trust to manage your legal and financial affairs if you become unable to do so yourself. In British Columbia, setting up a POA is an important step in your estate and incapacity planning.
Here’s what you need to know about Powers of Attorney in BC, how they work, and how to set one up.
What Is a Power of Attorney?
A Power of Attorney is a legal document that authorises another person (called your attorney) to make decisions and take actions on your behalf regarding your legal and financial matters. This can include:
- Managing bank accounts
- Paying bills
- Handling investments
- Managing property
- Signing legal documents
Important: A Power of Attorney in BC does not allow someone to make health care or personal care decisions for you. Those powers are granted under a Representation Agreement.
Types of Power of Attorney in BC
1. General Power of Attorney
- Used when you want someone to manage your legal and financial affairs for a specific period or purpose.
- Typically ends if you become mentally incapable or if you revoke it.
2. Enduring Power of Attorney (EPA)
- Continues to be valid even if you become mentally incapable.
- Often used as part of long-term planning.
Most people choose an Enduring Power of Attorney to ensure their affairs are managed if they lose capacity.
Why You Should Have a Power of Attorney
- Peace of Mind: Ensures your finances and legal matters are handled by someone you trust.
- Avoids Court Applications: Without a POA, your family may need to apply to the court to manage your affairs if you become incapacitated.
- Essential for Estate Planning: Part of a comprehensive plan to manage your assets and responsibilities.
How to Get a Power of Attorney in BC
Step 1: Choose Your Attorney Carefully
Select someone you trust implicitly. This could be a spouse, adult child, or close friend. Consider their:
- Trustworthiness
- Financial responsibility
- Willingness to take on the role
Step 2: Decide on the Scope
Determine what powers you want to grant. You can give broad powers or limit them to specific tasks.
Step 3: Draft the Document
It’s highly recommended to work with a lawyer to ensure the document meets BC legal requirements and reflects your wishes accurately.
Step 4: Sign and Witness the POA
In BC, your POA must be signed in front of two witnesses, or one lawyer/notary. Witnesses cannot be:
- Your attorney
- A family member of you or your attorney
- Anyone under 19
Step 5: Register if Necessary
A POA does not need to be registered with the government but may need to be presented to financial institutions or the Land Title Office (for property transactions).
Limitations of a Power of Attorney
- Does not cover health care decisions (Representation Agreement required).
- Ends upon your death (then your will governs your estate).
- Can be revoked if you are still capable.
Common Questions About POAs in BC
Can I have more than one attorney? Yes, you can appoint multiple attorneys and specify whether they must act jointly or separately.
Can a POA be challenged? Yes, if concerns arise about the attorney’s conduct or your capacity at the time of signing, the document can be challenged in court.
Is a POA valid outside of BC? This depends on the jurisdiction. Some other provinces and countries may not recognise a BC POA.
Why Work with a Lawyer?
While you can find templates online, working with a lawyer ensures:
- The document meets BC legal standards
- Your wishes are clearly documented
- Potential issues are considered and addressed
At Munro & Crawford, we guide clients through the POA process with care and clarity, ensuring their affairs are protected.
Planning Ahead with Confidence
Setting up a Power of Attorney is a thoughtful and proactive way to protect your interests and support your loved ones. It’s not just a legal formality, it’s an act of preparation that ensures your affairs are managed the way you would want.
If you’re considering a Power of Attorney, take the time to reflect on who you trust and what matters most to you. When you’re ready, speaking with a trusted legal advisor can provide clarity and peace of mind.
At Munro & Crawford, we’re here to walk you through the process with care and straightforward advice.
