Power of Attorney or Enduring Power of Attorney? - Nidus Personal ...
Power of Attorney or Enduring Power of Attorney? - Nidus Personal ...
Power of Attorney or Enduring Power of Attorney? - Nidus Personal ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
This inf<strong>or</strong>mation is based on legislation in the province <strong>of</strong> British Columbia.<br />
<strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> <strong>or</strong> <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>?<br />
Which one do I make?<br />
Are a <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> and <strong>Enduring</strong> <strong>Power</strong><br />
<strong>of</strong> <strong>Att<strong>or</strong>ney</strong> the same thing?<br />
No, a <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> (POA) and an <strong>Enduring</strong><br />
<strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> (EPA) are not the same;<br />
however, they have many similarities.<br />
• A POA and an EPA are both legal documents<br />
governed by the <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> Act <strong>of</strong> B.C.<br />
• You can use these documents to appoint one<br />
<strong>or</strong> m<strong>or</strong>e people to be your “att<strong>or</strong>ney” to handle<br />
your financial and legal affairs. (<strong>Att<strong>or</strong>ney</strong> does<br />
not mean lawyer; most people appoint a spouse,<br />
family member <strong>or</strong> friend in a POA <strong>or</strong> an EPA.)<br />
• These documents can only cover financial and<br />
legal affairs. Neither <strong>of</strong> them can cover health<br />
care <strong>or</strong> personal care matters.<br />
• Both types <strong>of</strong> documents can be very broad to<br />
allow your att<strong>or</strong>ney to manage all aspects <strong>of</strong> your<br />
financial and legal affairs. You can also restrict<br />
your att<strong>or</strong>ney’s auth<strong>or</strong>ity to specific dates <strong>or</strong><br />
tasks. An EPA is likely to be as broad as possible<br />
because it is f<strong>or</strong> when you are incapable.<br />
• In <strong>or</strong>der f<strong>or</strong> your att<strong>or</strong>ney to be able to make<br />
decisions about your real estate (e.g. your<br />
house, condominium, recreational property),<br />
your POA <strong>or</strong> EPA must be signed by a lawyer <strong>or</strong><br />
a notary public in acc<strong>or</strong>dance with the Land Title<br />
Act, and registered at the Land Title Office.<br />
o However, with a POA, the auth<strong>or</strong>ity to deal<br />
with Land Title ends after 3 years unless the<br />
POA includes w<strong>or</strong>ding such as ‘this <strong>Power</strong><br />
<strong>of</strong> <strong>Att<strong>or</strong>ney</strong> excludes Section 56 <strong>of</strong> the Land<br />
Title Act.’<br />
o An EPA does not expire after 3 years and<br />
does not need extra w<strong>or</strong>ding.<br />
What is the difference between a <strong>Power</strong> <strong>of</strong><br />
<strong>Att<strong>or</strong>ney</strong> and an <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>?<br />
The key difference between a POA and an EPA<br />
has to do with when they are in effect.<br />
• A POA is in effect only when you are mentally<br />
capable; it immediately ends when you<br />
become mentally incapable.<br />
• An EPA is in effect when you are mentally<br />
incapable; it can also be in effect when<br />
you are mentally capable – as generally<br />
recommended.<br />
To read when an EPA may end, see the <strong>Nidus</strong><br />
fact sheet on the Lifespan <strong>of</strong> an EPA. Go to<br />
www.nidus.ca—Inf<strong>or</strong>mation—<strong>Enduring</strong> <strong>Power</strong> <strong>of</strong><br />
<strong>Att<strong>or</strong>ney</strong>—Resources.<br />
Would someone make both a <strong>Power</strong> <strong>of</strong><br />
<strong>Att<strong>or</strong>ney</strong> and an <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>?<br />
Yes, some people will make both a POA and an<br />
EPA. You might choose to make a POA when you<br />
are capable and needing sh<strong>or</strong>t-term assistance with<br />
your finances. Perhaps you are going on vacation<br />
<strong>or</strong> you are in hospital <strong>or</strong> home-bound with an<br />
illness <strong>or</strong> injury. C<strong>or</strong>p<strong>or</strong>ations may also make a POA<br />
to appoint att<strong>or</strong>neys to act on their behalf.<br />
An att<strong>or</strong>ney under a POA is not subject to some <strong>of</strong><br />
the same duties as required f<strong>or</strong> an EPA, such as<br />
detailed rec<strong>or</strong>dkeeping. This is because the POA<br />
is only in effect when you are capable and you<br />
can access your own rec<strong>or</strong>ds and you can revoke<br />
(cancel) the POA at any time.<br />
An EPA is f<strong>or</strong> the longer term as it is in effect<br />
when you are incapable. Many British Columbians<br />
will make an EPA as part <strong>of</strong> personal planning f<strong>or</strong><br />
financial and legal affairs. You can create an EPA to<br />
be in effect when you are capable as well as when<br />
you are incapable.<br />
John is concerned about making arrangements<br />
f<strong>or</strong> the future in case he might need assistance<br />
with his financial and legal affairs due to a stroke,<br />
dementia <strong>or</strong> other illness <strong>or</strong> injury. He made an<br />
EPA that is in effect while he is capable as well as if<br />
he becomes incapable. He knows that capability is<br />
not black and white – sometimes it fluctuates.<br />
John is going to Austria f<strong>or</strong> six weeks to visit his<br />
relatives. Although his EPA is effective when he<br />
is capable, John decided to also make a POA. He<br />
made a POA that is in effect only f<strong>or</strong> the time<br />
period that he is away and only f<strong>or</strong> paying bills and<br />
renewing the car insurance.<br />
However, if John is in a serious accident while away,<br />
and he needs m<strong>or</strong>e help, the EPA can be used.<br />
A lawyer <strong>or</strong> notary public can guide you on which<br />
documents best fit your situation.<br />
What is a Bank <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>?<br />
A ‘Bank’ <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> is made by using<br />
f<strong>or</strong>ms provided by a financial institution. The<br />
‘Bank’ POA f<strong>or</strong>m will only allow your att<strong>or</strong>ney<br />
© June 2012 <strong>Nidus</strong> <strong>Personal</strong> Planning Resource Centre and Registry. All rights reserved. Permission to<br />
copy f<strong>or</strong> non-commercial purposes and only as a complete publication. This inf<strong>or</strong>mation is not legal advice.
<strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> <strong>or</strong> <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>?<br />
to deal with financial affairs at that specific<br />
institution – f<strong>or</strong> example, to manage your bank<br />
account. Your att<strong>or</strong>ney would not be able to use<br />
the Bank POA at a different financial institution<br />
<strong>or</strong> f<strong>or</strong> acting on your behalf with the Canada<br />
Revenue Agency about your taxes, <strong>or</strong> with the<br />
Insurance C<strong>or</strong>p<strong>or</strong>ation <strong>of</strong> B.C. about your vehicle<br />
insurance <strong>or</strong> an insurance claim.<br />
A bank POA might be convenient if you are<br />
physically unable to do your banking, but it is<br />
generally not sufficient f<strong>or</strong> the long term <strong>or</strong> if<br />
you become incapable. Discuss details with your<br />
financial institution. Some financial institutions<br />
may no longer provide their own f<strong>or</strong>ms, and<br />
instead refer you to a notary public <strong>or</strong> lawyer to<br />
make an <strong>or</strong>dinary POA <strong>or</strong> EPA.<br />
M<strong>or</strong>e Resources on <strong>Enduring</strong> <strong>Power</strong>s <strong>of</strong> <strong>Att<strong>or</strong>ney</strong><br />
F<strong>or</strong> an introduction to the EPA, read the <strong>Nidus</strong> fact<br />
sheet <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>: Planning<br />
f<strong>or</strong> Financial and Legal Affairs.<br />
Go to www.nidus.ca—Inf<strong>or</strong>mation—<strong>Enduring</strong><br />
<strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>—Fact Sheet.<br />
To learn how to make an EPA, read the <strong>Nidus</strong><br />
EPA Preparation Guide. You may also wish to<br />
read Planning f<strong>or</strong> the Future: RA7 <strong>or</strong> EPA f<strong>or</strong><br />
financial and legal affairs.<br />
Go to www.nidus.ca—Self-Help—Making EPA.<br />
F<strong>or</strong> further inf<strong>or</strong>mation, please review Lifespan<br />
<strong>of</strong> an EPA and Revoking an EPA.<br />
Go to www.nidus.ca—Inf<strong>or</strong>mation—<strong>Enduring</strong><br />
<strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>—Resources.<br />
Help! I can’t find the w<strong>or</strong>d ‘enduring’ in my document...<br />
How can I tell if I have a <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> <strong>or</strong> an <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>?<br />
Check to see what date your document is signed, then check f<strong>or</strong> the ‘enduring power <strong>of</strong> att<strong>or</strong>ney’<br />
w<strong>or</strong>ding. The following <strong>of</strong>fers some guidance. You can also check with a lawyer <strong>or</strong> notary public.<br />
Documents made bef<strong>or</strong>e September 1, 2011<br />
If you made a document bef<strong>or</strong>e September 1, 2011, and it is titled ‘<strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>,’ it may actually<br />
be an <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>. You will not find the w<strong>or</strong>d ‘enduring’ in the document. Instead, look<br />
f<strong>or</strong> w<strong>or</strong>ding similar to the following:<br />
In acc<strong>or</strong>dance with the <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> Act I declare that this power <strong>of</strong> att<strong>or</strong>ney may be exercised<br />
during any subsequent mental infirmity on my part.<br />
The above w<strong>or</strong>ding makes your document an EPA. It means that the financial and legal auth<strong>or</strong>ity you<br />
gave to the person appointed will remain in effect if you become incapable.<br />
You may also wish to review Amendments and <strong>Enduring</strong> <strong>Power</strong>s <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> made bef<strong>or</strong>e<br />
September 1, 2011. Go to www.nidus.ca—Inf<strong>or</strong>mation—<strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>—Resources.<br />
Documents made on <strong>or</strong> after September 1, 2011<br />
If you made an EPA on <strong>or</strong> after September 1, 2011, the title should say ‘<strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong>.’<br />
Amendments to the <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> Act came into effect on September 1, 2011, and now there is a<br />
m<strong>or</strong>e clear separation between a POA and an EPA. A document made under Part 1 <strong>of</strong> the Act is a POA;<br />
a document made under Part 2 is an EPA. (Documents made bef<strong>or</strong>e these changes are still recognized.)<br />
An EPA made on <strong>or</strong> after September 1, 2011 must include a statement that your att<strong>or</strong>ney:<br />
• has auth<strong>or</strong>ity to act while you are capable and this auth<strong>or</strong>ity continues if you become incapable, OR<br />
• has auth<strong>or</strong>ity to act only while you are incapable <strong>of</strong> making decisions about your financial affairs.<br />
Here is an example <strong>of</strong> w<strong>or</strong>ding that fits the first statement:<br />
My att<strong>or</strong>ney may exercise the auth<strong>or</strong>ity granted by this <strong>Enduring</strong> <strong>Power</strong> <strong>of</strong> <strong>Att<strong>or</strong>ney</strong> while I am capable<br />
<strong>of</strong> making decisions about my financial affairs, and this auth<strong>or</strong>ity continues despite my incapability to<br />
make those types <strong>of</strong> decisions.<br />
Note: Lawyers and notaries public may use different w<strong>or</strong>ding. It is a good idea to review the document with<br />
them to make sure you and your att<strong>or</strong>ney understand what it means and how it should properly be used.<br />
<strong>Nidus</strong> <strong>Personal</strong> Planning Resource Centre and Registry<br />
1440 W 12th Avenue, Vancouver BC V6H 1M8<br />
tel 604.408.7414 | t.free 1.877.267.5552 | fax 604.801.5506 | info@nidus.ca | www.nidus.ca<br />
<strong>Nidus</strong> is a non-pr<strong>of</strong>it, charitable <strong>or</strong>ganization.