A Power of Attorney (POA) is one of the simplest yet most important legal documents you can have — but many people overlook it until it’s too late. Whether you’re planning for your future or managing your affairs today, setting up a Power of Attorney ensures that your financial and legal matters will be handled by someone you trust if you become unable to do so yourself.
What Is a Power of Attorney?
A Power of Attorney is a legal document that authorizes another person — known as your “attorney-in-fact” or “agent” — to make decisions on your behalf. In British Columbia, there are two main types:
-
Enduring Power of Attorney: Remains valid even if you become mentally incapable.
-
General Power of Attorney: Valid only while you are mentally capable.
This document can cover financial matters like banking, paying bills, selling property, and managing investments. It does not allow your agent to make personal or health care decisions (those require a Representation Agreement in BC).
Why It Matters
Without a valid Power of Attorney, no one — not even your spouse or family — can legally manage your financial affairs if you become incapacitated. In that case, someone would need to apply to the court to be appointed as your “Committee” under the Patients Property Act, a lengthy and expensive process that can take months.
Common Scenarios Where POA Is Needed
-
Medical emergencies: Accidents, strokes, or illnesses that prevent you from managing your finances.
-
Cognitive decline: Age-related conditions like dementia.
-
Travel: If you’re abroad and need someone to handle business or legal matters in Canada.
-
Business owners: To ensure continuous operation of your business.
Key Considerations
When setting up a Power of Attorney, you should:
-
Choose someone you trust: Typically a family member, close friend, or professional.
-
Define the scope: Decide whether you want a general or limited authority.
-
Understand your rights: You can revoke or change your Power of Attorney at any time as long as you’re mentally capable.
-
Consult a lawyer: A poorly drafted POA can lead to abuse or unintended consequences.
How to Set It Up
In British Columbia, a Power of Attorney must be:
-
In writing
-
Signed and witnessed properly
-
Compliant with the Power of Attorney Act (BC)
You can download a basic form online, but it’s always recommended to consult a lawyer, especially if your situation involves business ownership, large assets, or complex family dynamics.
—
About the Author:
Paul Choi is the Founder of Sky Law, committed to providing trusted legal guidance and advocating for public good.
