Does a power of attorney have to cost a bunch of money?
I presented at an end-of-life seminar last weekend. An attendee reported that at least one law firm is charging $500.00 for a power of attorney.
That might be good value. I haven含羞草研究社檛 done the market research to find out what lawyers typically charge.
Last week I shared how you can create a legal will in a pinch, without a lawyer. Can you do the same with a power of attorney?
Yes!
Follow this link (https://www2.gov.bc.ca/assets/gov/people/seniors/financial-legal-matters/pdf/powersofattorney_bc_web_final.pdf) to an excellent two page information bulletin about powers of attorney published by the Province of British Columbia.
Within that bulletin is a link to a web page titled 含羞草研究社淚ncapacity planning含羞草研究社� that contains links to various free forms. For the power of attorney form click here (https://www2.gov.bc.ca/assets/gov/health/managing-your-health/incapacity-planning/enduring_power_of_attorney.pdf).
You含羞草研究社檒l need a lawyer or notary to witness parts of the form for it to be effective for land transactions, but if that isn含羞草研究社檛 required and you follow the instructions on the form you will end up with a fully effective power of attorney without paying any money.
Caution! I recommend that you consult with a lawyer about your will and power of attorney even though it含羞草研究社檚 possible to create them without a lawyer含羞草研究社檚 help.
There are all sorts of limitations to the basic, though 含羞草研究社渓egal含羞草研究社�, self-made will I wrote about last week. In a future column I含羞草研究社檒l discuss the value a lawyer can provide by drafting a will with clauses that fit your particular circumstances and wishes.
Likewise, the free form for power of attorney is 含羞草研究社渓egal含羞草研究社�, but has limitations.
One limitation has to do with land transactions, even if you involve a lawyer or notary to witness the necessary portions of the form.
British Columbia law provides a default that the land transaction power of a power of attorney expires after three years. A lawyer would add a clause to the document to remove that default.
Another restricts your attorney含羞草研究社檚 power to give gifts, loans and charitable donations.
British Columbia law puts a default limit on how much your attorney can give or loan on your behalf to $5,000.00 per year (or 10% of your income, whatever is less).
You might want your attorney to continue financially supporting a grandchild含羞草研究社檚 education as well as charitable organizations you have supported, which might far exceed $5,000.00 per year.
That limitation can be removed as well by adding a clause to the document.
There are other additions to the basic form that can be of significant value. Consult with a lawyer for a power of attorney that best your particular circumstances and wishes.
But back to the readily available and free form.
It含羞草研究社檚 an 含羞草研究社渆nduring含羞草研究社� power of attorney, containing the necessary clause allowing your attorney to continue after you yourself have lost the capacity to make financial decisions.
Armed with it, the person you appoint has dramatic power.
Yes, dramatic. They could liquidate your investments and sell your real estate!
That含羞草研究社檚 wonderful if doing so is under your specific instruction. Or, if you含羞草研究社檙e no longer capable of managing your financial affairs, it含羞草研究社檚 in your best interests.
Not so much if you含羞草研究社檝e appointed someone unworthy of your trust.
Please take great care.
Would you have attended the end-of-life seminar I presented at last weekend? E-mail me if you含羞草研究社檇 like notification of future events. Consider connecting with me on Facebook where I announce such things. And I含羞草研究社檒l try to remember to include notifications in future columns.
Next week I plan to do with representation agreements the same that I含羞草研究社檝e done with wills and powers of attorney. Tune in for a link to free forms and a discussion about what representation agreements are all about.
Paul Hergott
Lawyer Paul Hergott began writing as a columnist in January 2007. Achieving Justice, based on Paul含羞草研究社檚 personal injury practice at the time, focused on injury claims and road safety. It was published weekly for 13 陆 years until July 2020, when his busy legal practice no longer left time for writing.
Paul was able to pick up writing again in January 2024, After transitioning his practice to estate administration and management.
Paul含羞草研究社檚 intention is to write primarily about end of life and estate related matters, but he is very easily distracted by other topics.
You are encouraged to contact Paul directly at paul@hlaw.ca with legal questions and issues you would like him to write about.
