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鈥檛 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 鈥淚ncapacity planning鈥� 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鈥檒l need a lawyer or notary to witness parts of the form for it to be effective for land transactions, but if that isn鈥檛 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鈥檚 possible to create them without a lawyer鈥檚 help.
There are all sorts of limitations to the basic, though 鈥渓egal鈥�, self-made will I wrote about last week. In a future column I鈥檒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 鈥渓egal鈥�, 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鈥檚 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鈥檚 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鈥檚 an 鈥渆nduring鈥� 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鈥檚 wonderful if doing so is under your specific instruction. Or, if you鈥檙e no longer capable of managing your financial affairs, it鈥檚 in your best interests.
Not so much if you鈥檝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鈥檇 like notification of future events. Consider connecting with me on Facebook where I announce such things. And I鈥檒l try to remember to include notifications in future columns.
Next week I plan to do with representation agreements the same that I鈥檝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鈥檚 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鈥檚 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.
