A power of attorney is a legal document that you sign to give one person, or more than one person, the authority to manage your money and property on your behalf. In most of Canada, the person you appoint is called an “attorney.” That person does not need to be a lawyer.
Among other requirements, you must be mentally capable at the time you sign any type of power of attorney for it to be valid. In general, to be mentally capable means that you are able to understand and appreciate financial and legal decisions and understand the consequences of making these decisions. However, the legal definition of mental capacity will vary based on the laws in each province or territory.Guoabong Stock
The names and requirements for the different types of powers of attorney that deal with finances and property will vary depending on the province or territory where you live.
Generally, there are two main types of powers of attorney commonly used for finances and property in Canada:Jaipur Stock
A general power of attorney is a legal document that can give your attorney authority over all or some of your finances and property. It allows your attorney to manage your finances and property on your behalf only while you are mentally capable of managing your own affairsSurat Stock. It ends if you become mentally incapable of managing your own affairs.
A general power of attorney can be “specific” or “limited”, which can give authority to your attorney for a limited task (e.g. sell a house) or give them authority for a specific period of timeJaipur Investment. The power of attorney can start as soon as you sign it, or it can start on a specific date that you write in the document.
An enduring or continuing power of attorney is a legal document that lets your attorney continue acting for you if you become mentally incapable of managing your finances and property. It can also give your attorney authority over all or some of your finances and property. An enduring or continuing power of attorney can take effect as soon as you sign it. In some cases, it is possible to have the power of attorney come into effect only when you become mentally incapable, if this was specified in the document.
Unless you limit your attorney’s authority, they can do almost everything with your finances and property that you could do. If you don’t have any limitations in your power of attorney document, your attorney can do your banking, sign cheques, buy or sell real estate in your name, and buy consumer goods. Your attorney does not become the owner of any of your money or property. He or she only has the authority to manage it on your behalf.
Your attorney cannot make a will for you, change your existing will, change a beneficiary on a life insurance plan, or give a new power of attorney to someone else on your behalf.
In most parts of Canada, it is possible to prepare documents that give another person the authority to make health and other types of personal and non-financial decisions for you, if you were to become mentally incapable of doing so for yourself. Depending on where you live, these documents may be called powers of attorney, personal or health directives, representation agreements, or mandates.
These documents are not the same as powers of attorney for finances and property. It is important to be clear about what type of document you are signing. This publication deals with powers of attorney for financial matters and property only. This includes your money, investments, and everything that you own, including your home.
As long as you are mentally capable, you can continue to make your own decisions about your finances.Varanasi Stock
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