![]() ![]() Two types of limitations provide some protection to the donor in a POA. This may include seeking proper tax and legal advice to manage the donor's affairs. The attorney must act in the donor's best interests, putting the donor's interests ahead of their own. The legal responsibilities of the attorney (designated person) depend on what the POA document states and the nature of the assets they are managing, but they are generally held to a very high standard as a fiduciary (a person or entity who manages money or property for someone else). ![]() ![]() In this case, the designated person could sign all documents and make all decisions regarding the land in question. For example, if the donor were to be out of the country and needed someone to handle the sale of some land for them. Specific POA: This document can be used if the donor just needs someone to handle a specific asset.These POAs would usually also state that they will remain in effect if the donor were to lose capacity at a later time. This arrangement could be useful in the case of someone who is still competent but has mobility or other issues where they would prefer to have another person handle their affairs for them. Immediate POA: This document can be activated as soon as it has been signed.As an example, it may be set up to only come into effect upon the donor's loss of mental capacity, as determined by two medical doctors. Springing POA: This POA will only come into effect in the case of a predetermined contingency.The most common misconception about POAs is that they give the attorney the ability to make personal decisions (including medical choices) about the donor however, this ability is addressed through a personal directive, which is a separate document under different legislation. The friends or family of the individual, in this case, would need to apply for a court order for trusteeship.Įach province has its own legislation governing POAs the relevant statute in Alberta is the Power of Attorney Act. ![]() Just being able to perform the physical act of signing the POA does not make the document valid if the individual is not mentally competent at the time. If the individual has already lost capacity, they will not have the legal ability to give instructions or execute the POA. The person making the POA must have sufficient mental capacity to do so at the time the document is signed. For terminology, in this scenario, you would be referred to as the "donor," and the person you appointed would be the "attorney." With this document, the designated person will be able to sign cheques and make decisions about managing your finances and property. Readers are encouraged to reach out to their own legal counsel to discuss any specific questions they might have about powers of attorney.Ī power of attorney (POA) is a legal document that allows you to appoint another person to handle your property and financial affairs for you. The Grizzly Gazette contacted Perry Law LLP, a family-owned law firm out of Barrhead, Alberta, to learn more about this subject.īefore continuing, it is important to note that the information provided by the lawyers at Perry Law LLP is only intended to provide legal information and should not be taken as legal advice. The misuse of a power of attorney has been used as a plot device in many popular movies and TV shows, and once in a while, there have been court cases about these legal agreements in the news… but what exactly is a power of attorney? ![]()
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