Power Of Attorney and Personal Directive in Alberta: What You Need to Know

Power Of Attorney and Personal Directive are essential documents. 

Have you ever considered the possibility that you are alive but can no longer make life decisions for yourself? Many people may exclude this possibility, but the fact of the matter is every 25th Canadian has a risk of some form of disability, which can render them unable to make crucial decisions related to their finances and other day-to-day matters.

Therefore, we must prepare for the worst to expect the best.

Power of Attorney and Personal Directive are two documents that serve the purpose stated above. You should prepare the two instruments to secure your financial and overall well-being while facing an unwanted predicament.

Please read on to understand these documents, how to prepare them, and other related matters.

What is the Power of Attorney in Alberta?

According to the official definition, power of attorney is a legal document where one person authorizes another person to act on their behalf for financial and property matters.

What is a Personal Directive?

A personal Directive is a legal document that appoints someone else to make decisions about individual, non-financial matters such as healthcare and housing. It becomes applicable when someone cannot make these decisions on their own.

Explanation

How are Personal Directives and Power of Attorney different from a will?

A will is a document that deals primarily with the disposal of your assets post-mortem.

Personal directives and power of attorney relate to some matters that can arise within your life.

Are Personal Directives and Power of Attorney a part of estate planning?

While you have the liberty to prepare them before or aside from your primary estate planning, they are typically considered a part of your overall estate planning file.

Ordinarily, estate planning comprises two sets of documents: Wills and Codicils. The ones under discussion are part of the codicils.

More on Personal Directives

Common areas included in a Personal Directive

Health Care	Nutrition	Hydration	Shelter	Residence
Clothing	Hygiene	Comfort	Recreation	Social Activities

Do Personal Directives Actually Work?

A doctor cannot ignore them even if they may cost the life of the patient.

In the Fleming v Reid case, the court set out categorically:

The Need for a Personal Directive:

If you do not have personal directives in place and you, for any reason, become incapable of making your own decisions, the following repercussions will be there:

What If I Cannot Find Anyone to Name?

Do I Get to Decide Which Matters I designate for My Agent?

Yes, you can outline which personal matters, such as healthcare, accommodation, etc., your agent should decide when you can no longer.

You can also nominate multiple agents.

Moreover, you may divide the matters among the persons you have named, stating who gets to decide what.

Who determines my capacity?

You can name a trusted friend or relative who knows you well and will decide this for you. After consulting a physician or psychologist, he can bring your personal directive into effect.

Do I need to revoke my previous directive while making a new one?

Yes. You should include a revocation clause stating, “I, at this moment, revoke all previous personal directives I made.”

More on Power of Attorney

What Happens in the Absence of a Power of Attorney?

You will not have anyone to make financial decisions on your behalf.

Your kith and kin will have to go to the court to seek orders to nominate them as agents.

The court processes of nomination will cost time and money.

Power of Attorney: Enduring Vs General

A General Power of Attorney is valid only for a particular transaction or for a fixed period.

The Enduring Power of Attorney lasts longer and gives a simple and effective way for the nominated persons to make financial decisions and perform such transactions related to personal matters and finances in case the person in question may lose mental capacity.

Why is it better that a lawyer creates your Power of Attorney document?

A lawyer drafting your document will make sure that:

All your financial interests remain protected.

Your power of attorney is legal.

When Does the Power of Attorney Take Effect?

You can define when it comes into effect. Some of the options are:

When Does the Power of Attorney Cease to Have an Effect?

Following are the circumstances for the power of attorney to cease to have an effect:

Bottomline:

Supplementary as they may seem, they are urgent to life and estate planning. It is expedient to make time and prepare these documents as an urgent task. Contact an expert to schedule a meeting on this important matter.

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