Power of Attorney

In Alberta a document that assigns decision making powers of financial matters of a person is called a power of attorney.    A power of attorney can be either an immediate one that takes effect upon signing, or it can be classified as a "springing" power of attorney which takes effect upon certain testing criterial confirming if a person has lost capacity.   

In addition, parties can select whether a power of attorney continues beyond incapacity occurring indefinitely, which in doing so means that this document is an enduring Power of Attorney. 

The entering into of a power of attorney is governed by provincial legislation, and therefore where a person resides is important. In Alberta this matter is governed by the Powers of Attorney Act.    This legislation sets out specific criteria that needs to be set out in a power of attorney that is executed by a person. 

a power of attorney is very important in today's modern world where an individuals finances are complex, necessitating regular overnight and management.  It is common now that individuals are dealing with multiple financial institutions and government bodies as part of the management of their finances.   However, when losing capacity this management is no longer possible and without a power of attorney, others do not have the immediate legal right to step in to assisting that person.  

The ability to enter into a power of attorney is a designated right for decision making powers that is not reviewed by the court or government body unless a specific claim is brought forward to do so. Rather, a power of attorney operates as an efficient tool to put in place the governing of decision making of financial matters prior to a loss of capacity, helping to avoid delay or a lack of oversight for financial management.       

However, as a counter balancing matter it is very important to consider the impact of decision makers in a power of attorney.   Without doing so, individuals could come victim to predatory behaviour. 

There needs to be careful consideration prior to entering into a power of attorney as to who will have decision making and how this may differ depending on the circumstance. Further, you will want to consider for how long are these decision maker powers are in place, what limitations there are, and under what circumstance can this authority be reviewed or revoked.   

An individual taking on the role of an attorney should be made aware of what specific circumstances need to occur to become the attorney, and they should be aware of their responsibilities to the person when acting as an attorney.  It is critical that this person or persons acts in complete good faith of the party that they have decision making powers over. 

At Family Central Law we regularly assist clients in drafting of a personalized power of attorney. Our office strives to craft a process for engagement, review and completion of this document that is tailored to your needs. Kindly do not hesitate to reach out to discuss this matter by contacting our office for a free consultation by calling our office at 1-866-278-4187 or emailing info@familycentrallaw.com, or by clicking on our consultation page. 

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