How Do You Change or Set Power of Attorney?
Posted by on Jul 15, 2024 in Blog, Family Law, Wills & Estate
How Do You Change or Set Power of Attorney?
A power of attorney (POA) is a legal document that grants someone the authority to make decisions on your behalf, usually in financial or health matters.
People often set up a POA to make sure their affairs are handled according to their wishes if they become unable to manage them due to health reasons.
However, life changes may require updating or changing your POA to better reflect your current circumstances.
When it comes to Edmonton wills and estates, it’s important to understand how to set up and change a power of attorney in order to manage your affairs effectively and securely.
How Does a Power of Attorney Work?
A power of attorney allows an individual, known as the principal or grantor, to appoint another person, known as the agent, to make decisions on their behalf.
A POA can be broad, allowing someone to handle all aspects of one’s affairs, or narrowed to specific actions, such as managing financial transactions or making healthcare decisions.
This authority can take effect immediately upon signing the document or can be set to activate only under certain conditions.
The power granted by a POA remains in effect until it is revoked by the grantor, the grantor passes away, or the grant is deemed legally incompetent.
However, if the POA is designated “durable,” it will continue to remain in effect even if the grantor loses mental capacity.
What are the Rules for Power of Attorney in Alberta?
In Alberta, there are specific rules that govern powers of attorney and how they are established.
These rules protect both the individual whose interests are being managed and the appointed POA:
Capacity
For a power of attorney to be valid, the grantor must fully understand the implications of the arrangement.
This includes a clear understanding of the grantor’s assets and the consequences of allowing someone else to make decisions about them.
The law requires that the grantor be mentally competent at the time the POA is signed.
Intent
The intention behind granting a POA must be clear, explicit, and free from ambiguity or confusion.
This intent is usually expressed in a written document, which outlines the details and scope of the authority being granted to the appointed POA.
The document should also state who the grantor wishes to appoint as their POA to act on their behalf.
Understanding
The grantor must understand the extent of the powers they are delegating.
This includes knowing what decisions the POA can make and the conditions under which these powers can be exercised.
Full understanding prevents disputes and confusion later on.
Voluntariness
The decision to establish a power of attorney must be made freely, without coercion or undue influence from any party.
It’s important that the grantor’s decision is voluntary to make sure the POA reflects their true wishes.
Forms and Signing
The POA document must be drafted and signed according to Alberta’s legislation.
This includes the presence of witnesses during the signing who can attest to the grantor’s capacity and voluntariness.
How to Choose a Power of Attorney
Choosing a person to hold your power of attorney is an important decision that should be made with thought and consideration. Here are some ways you can make the best choice:
Trustworthiness
The person you choose to be your power of attorney has to be trustworthy. They will be the ones managing important aspects of your personal and financial matters.
Availability
Your POA should be readily available to handle duties as required. This means they should be in a position to manage tasks in a timely manner and not be frequently unavailable due to other commitments.
Understanding of Your Wishes
It’s important that your POA understands your preferences and values. Someone who understands your wishes will make decisions that align with what you want, particularly in situations where you cannot express them yourself.
Ability to Make Decisions
The appointed person should be capable of making well-informed, thoughtful decisions. This is particularly important in complicated situations where multiple interests must be balanced.
Legal Knowledge
While a POA doesn’t have to have extensive legal knowledge, they should have a basic understanding of what their legal requirements are as the appointed person.
Understanding Edmonton wills and estates can be advantageous as well.
This knowledge can help them make informed decisions that comply with legal standards.
What is Required for Power of Attorney in Alberta?
Setting up a POA in Alberta involves specific legal criteria that need to be met to make sure the appointment is valid and enforceable. Here are the requirements:
Legal Capacity
The person granting the POA must have the legal capacity to do so. This involves understanding the legal implications of the documents and the powers it grants.
Clear Intention
The POA document must clearly define the intention to transfer decision-making authority. It should detail the specific powers granted and under what circumstances they can be used.
Valid Execution
For a POA to be legally valid, it must be executed according to Alberta’s legal requirements, including proper form, signing, and witnessing.
Can a Family Member Override a Power of Attorney in Alberta?
Overriding a power of attorney is not a straightforward process. A family member can only challenge a POA if there are valid legal grounds, such as the incapacity of the grantor at the time of signing or evidence of coercion. Legal proceedings would be necessary to address such concerns.
How Do I Revoke My Power of Attorney?
If you have changed your mind and wish to revoke your POA, there are several steps you need to take to make sure the revocation is legally recognized:
Draft a Revocation Document
Create a document stating your intention to revoke the POA. This document should be clear and concise, specifying the initial POA document and the date it was executed.
Sign and Date the Revocation
The revocation must be signed and dated by you, affirming that you are of sound mind and acting freely.
Notify Your Attorney-in-Fact
It’s important to notify the person currently holding the POA. They need to be aware that they can no longer legally act on your behalf.
Notify Relevant Parties or Institutions
Any institutions or individuals that interacted with the appointed individual under the POA should be notified. This includes banks, legal entities, and healthcare providers.
Consider Recording the Revocation
Depending on the nature of the POA, it may be wise to record the revocation with a legal body to prevent future misunderstandings or misuse of the revoked powers.
Secure Your Future: Manage Your POA with Heritage Law
Changing or setting up a power of attorney is a significant legal decision that requires thought and consideration.
To make sure all legal requirements are met and that your interests are fully protected, it’s important to consult with the experts.
At Heritage Law, we specialize in Edmonton wills and estates and can guide you through every step of the process.
Contact us today, and let us help you safeguard your assets and well-being!
