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Power of Attorney Canada All You Need to Know About Will Featured Image

Power of Attorney Canada: All You Need to Know About Will

It would be best to predict our future, but that is not usually the case. You do not know when you will be unable to communicate because of a sudden illness or have to fly to another country because of a sudden work meeting.

These are why having a Power of Attorney can lend you a hand in your dire need. You can appoint someone that you trust with Personal or Property POA so that they are present to make an important decision when you cannot.

Well, the terms might sound confusing to you right now. But you will understand what you need to do to prepare a POA if you stay with us till the end of this article.

What is the Power of Attorney in Canada?

A POA is a legal document that states that you have given the authority to someone who will make certain decisions about your properties or personal care when you cannot do so for yourself. This document protects your assets and health with the help of another person that you trust.

Many individuals prepare this paper before writing an official Will. Appointing a representative will help you when you age or is unconscious due to an unfortunate accident. Nevertheless, people with chronic diseases also appoint an ‘attorney’ to take care of the financial and property-related issues.

Your Agent will have similar responsibilities to you. He will manage bank accounts, pay the tax and credit card bills. He will also be responsible for collecting the money you owe or paying back the debt you have taken.

What are the Types of POA?

There are two types of Power of Attorney. They are Personal Care and Property.

A POA for Personal Care will act as your voice when you are incapable of making any decision or even communicating consciously. They will be liable for making decisions about a medical emergency, health care, or even meals.

On the contrary, you may need a POA for Property to manage your finances. Some people think they will be unable to resolve any property-related issue when they are old, sick, or absent from the country. In those scenarios, their executors can handle complex situations on their behalf.

Many Canadians also prefer to arrange a POA with limited powers to settle their business and property-related issues even if they are not present.

Who Can Be Your Attorney?

Anyone who you know and believe with good judgment and management skills is a perfect candidate to be your Attorney. People usually consider their spouse, partner, friend, or family member.

In terms of your Attorney’s age, you may need to check that with your lawyer. The age varies from the province and territory in which you are residing.

How to Get a Special Power of Attorney in Canada?

If you legally appoint your close relative and give him a special Power of Attorney, that person will be responsible for your legal actions when you are absent.

A special Power of Attorney will give you the responsibilities, for example, buying or selling any property, making decisions on real states or properties, company or business.

To get a Special Power of Attorney in Canada, you need to follow the steps below:

  • You need to fill out the form of SPA and complete the authentication procedure with a notary public. You need to pay a single fee for such authentication.
  • If you are not a citizen of Canada, you need to complete the authentication procedure with your respective Embassy after filling out the form.

What Other Documents Do You Need with a POA?

Experts in this field recommend attaching a list of your financial assets with the general POA. It will help the executor to understand the responsibilities easily.

Organizing and creating an inventory of your assets is important while preparing your Will. But attaching the inventory with your POA is necessary since it will be affected when you are incapable.

You will lose the capacity to make any changes. So, it is better to change it beforehand.

How to Make the Power of Attorney in Canada for India?

A Power of Attorney in Canada for India will be under a Special Power of Attorney category. You need to download the application form in your province and fill out the form.

The required attachments are also necessary, and after everything is ready, you need to complete the procedure with the Consulate General of India or the high commission of India.

What Happens If You Don’t Have a Power of Attorney in Canada?

You may become unconscious or absent from the country when you need to make an important decision about your health and assets. If you do not have a POA, someone you know will have to grant the Authority from the Court.

This Authority will give them a certain freedom to manage your money when you are not in sound mind to make that decision by yourself.

But usually, this process is long, and the person who is doing this for you may need to spend a lot of money. That’s why considering having a Power of Attorney is a necessity.

Differences in Power of Attorney Processes All Over Canada

There are some major differences in creating the POA in different provinces in Canada. It is crucial to consult with your lawyer about the form of POA that is designed uniquely for that province.

For example, if you live in Manitoba, you will observe different signing requirements than in Quebec. Again, the POA also has separate names in different provinces. And you must use the form and name dedicated specially for your province.

Can You Cancel a Power of Attorney?

If you want to cancel the power that you gave someone else, you can also do that with the two methods given below:

  1. A POA revocation document
  2. Destroying the document

Shredding the document is often enough to cancel the legal papers. So, in many cases, the revocation document is not needed anymore.

However, the PAA will not be valid anymore if any parties are dead. After your death, your POA will be cancelled automatically, and the Will you have prepared will be affected from the date.

Again, it will not remain valid when your representative misuses the power or changes the terms in his favor.

Conclusion:

The aspects of POA can be confusing to people who are not from a law background. If you want to grant someone the Power of Attorney, it is better to consult with your lawyer first about the terms and conditions on the papers.

Since it is an important matter that concerns your hard-earned money and property, make sure you understand what you allow him to do with the POA. Furthermore, appoint the person you trust and have known for a long time.

FAQs:

Here are a few questions you might wonder.

What does the Power of Attorney mean in Canada?

In Canada, if you grant an executor a power of Attorney, he will be capable of making decisions, such as selling or buying a property or paying the bills on your behalf. However, they would not be able to make a Will for your property or misuse the power for their benefit.

How to set up Power of Attorney in Canada?

You have to hire an expert legal adviser or law firm to set up a POA.

To set up the POA, they will ask you questions about what type of Authority you want to assign, who your Agent is, and your personal information.

And after completing the POA form with notarization and signature, you can review the completed Power of Attorney.