Monday, October 18, 2010

Power of Attorney:

A Power of Attorney (POA) is a document in which you appoint someone else to act on your behalf on matters that you specify. A Power of Attorney can be made to start immediately, or upon mental incapacity. The authority granted in a Power of Attorney ceases at the death of the person granting the power. You can draft up separate Power of Attorney for personal care and another one for property.

There are many differences between provincial rules relating to POA. A person giving the Power of Attorney is called as principal in some provinces and other provinces called as donor.  The person receiving the POA is called as “attorney”, “attorney in fact”, “agent” or “donee”.

General Power of Attorney:
It gives attorney power to act all aspects of your affairs.

Special or Limited Power of Attorney:
It gives the attorney only limited authority, restricted to certain duties.

Ordinary Power of Attorney:
It is only valid as long as the donor/principal is capable of managing his or her own affairs. It becomes invalid when the donor/principal loses capacity (loses the ability to make important decisions).

Enduring Power of Attorney:
If created before the donor loses capacity, will remain valid even after capacity is lost. If you want your attorney to make decisions for you after you have lost the ability to make decisions for yourself, then you should choose this option.

Springing Power of Attorney:
A variation of a durable power of attorney is the "springing power of attorney" which "springs" to life when a certain event, specified in the power of attorney, has taken place.

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