POWER OF ATTORNEY ISSUES
What is a Power of Attorney?
A Power of Attorney is a legal document which allows one person (the “donor”) to give another person (the “attorney”) the power to act in respect of the donor’s financial matters. A Power of Attorney is a common personal and estate planning document because it allows, for example, children to help manage an elderly parent’s finances. Anyone can have a Power of Attorney provided they are over the age of 19 and mentally capable at the time they sign the document.
What duties does an attorney have?
Section 19 of BC’s Power of Attorney Act sets out the duties of an attorney. These include:
- act honestly and in good faith,
- exercise the care, diligence and skill of a reasonably prudent person,
- act within the authority given in the enduring power of attorney and under any enactment, and
- keep prescribed records and produce the prescribed records for inspection and copying at the request of the adult.
An attorney’s job is not easy. They must manage the donor’s finances and get a reasonable return on investments while also ensuring they are not exposed to risk. They must keep detailed records to submit to the Public Guardian and Trustee.
What if an attorney is behaving improperly?
Attorneys who use a donor’s property for their own benefit or steal from the donor will face serious consequences. The Public Guardian and Trustee will investigate an allegation of misuse or abuse of a Power of Attorney. The BC Supreme Court may revoke the Power of Attorney and may order that the attorney is liable to repay funds that were wrongfully taken.
What should I do if I have concerns about a Power of Attorney?
The law surrounding a Power of Attorney is complex and requires a thorough understanding of many applicable laws. The power of attorney lawyers at Virgin Law Group have experience in all types of claims related to powers of attorney. Contact us to receive a free 30-minute consultation with an associate lawyer.
