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fl . Power ofAttomey â€"â€" importan Rt l\.ithij\n l~ Burns. ll H Most of its .it‘c timin- ol the impor- t.int'c oi li.i\in_u .1 Will Few ol' us. lionciciz appreciate the importance of lttu mg a Puncr of Attorney until It IA tuo lutL‘ “hilc at Will prondos the manage Irielit oi our uthttrs and disposition of our property utter death. :1 Power of Atv torney is our insurance that during our ltictiinc someone whom we know and trust \\ ill be able to manage our affairs [or us it “e. tor \\ hatcvcr reason. can- nut. The fact is that few ol‘ us are forâ€" tunate enough to get dirough life healthy and in full possession of our faculties until the end At a minimum. we need 4 Power of Attorney as protection against the misfortunes of accrdcnt. illness or scnility. What is a Power of Attorney? A Power nl Attorney is a document u. hereby one person (the Principal] authorizes another person (the Attorney) to act on her behalf. The actions and signature of the Attorney. acting in her capacity as such. are legally binding on the PrInctpaJ To grant a Power of Attorney, the Principal must be at least 18 years of age and mentally competent. Needless to say. the Attorney must also be mentally competent to exercise the Power of Attorney You may appoint one or more people as your Attorney. if you appoint two people "Jointly" as your Attorney. it means both of them must sign any doruments on your behalf to be effecâ€" tive. [i‘ you appoint two or more people "Severally", it means any one of them can exercise the Power of Attorney as required from time to time. Just as it is prudent to name an alter» nate Executor in your Will in the event your original Executor dies or becomes incapable of completing the administra- tion of your estate, it is wise. particularly if you are elderly and the Attorney is your spouse. to appoint an alternate Attorney while you still have the mental capacity to do so. Fiduciary Relationship A fiduciary relationship exists betâ€" ween thc Principal and her Attorney. The Attorney holds a position of trust. and has a legal obligation to use reasonâ€" able care, act only in the best interests of the Principal, account for her actions, and not profit from her position. In addition. while an Executor is entitled to be paid for the administration of an estate. at law an Attorney is not entitled to any compensation for managing the affairs of a mentally incompetent person. In reality. however, your protection that the Power of Attorney will not be abused rests on your choice of an Attorney. Form In Ontario. Powers of Attorney are governed by the common law and the Powers of At- torney Act. The act provides for a general form of Power of At~ torney which can be modified as required by your tfiar the living needs. circumstances and wishes. The document is signed by the Principal and wrtnessed by another person who mum not be either the Attorney not the A1. torney‘s spouse. Contrary to popular misconception. the signature of the Attorney It] not required at the time the Power of Attorney is made. The authority given may be virtually unlimited 01' it may be restricted to specific matters (such as the sale of a particular piece of real estate) or to a period of time (such as an absent-e for vacation or business). The form also contains two Optional clauses which are the main reasons why people have a Power of ARCHIE“ The first clause provides that the Pox-er or Attorney may be exercised during any subsequent mental incapacity it the Principal, and the second clause c 'iubles the Attorney to continue to act In the place of the Public Trustee should the Principal be certified mentally ll'lL- impe- tent and become a patient 01' a “psychiatric facility". The definiiaon of “psychiatric facility" in the F-u‘icnial Health Act includes not only a mental hospital or psychiatric institutii-n but also the psychiatric ward of a pgl‘lt‘l’fll hospital. Most banks and trust COmPaIll'.‘ 5 have their own Power of Attorney for '15 for the operation of bank accounts. If you only wish to ensure that someone else will be able to handle your banking and pay your bills, you may use y0ur unit‘s Power of Attorney form. You \hnuld not, as many people do, open ajsnni ac- count for this purpose, unless )“U "1' tend the other person to have M IhE money in the account on your Willi Outside Ontario A Power of Attorney l’eCOgnl‘t‘Ll in Ontario may not be legally effetliw in another jurisdiction. If you have usual; outside the province, particularly real estate, you should asoertain what Li'n‘ re- quirements of that particularjunsdiction are for alPower of Attorney. Reprinted with permissianfivm What's Happening Magazine. BeIIevi/lr. 6 H & C February. March 1989 ' " m' ..