A power of attorney lets someone manage your finances if you can't — but BC law has important distinctions you need to understand.
A power of attorney is one of the most powerful legal documents you can sign in BC. It authorizes another person — your attorney (not a lawyer, but the person you choose) — to manage your financial and legal affairs. Used correctly, it protects you and the people who depend on you. Used incorrectly, or left undone, it can create a crisis.
The Power of Attorney Act
Powers of attorney in BC are governed by the *Power of Attorney Act*. The Act sets out who can grant a power of attorney, how it must be executed, what an attorney can and cannot do, and how it can be terminated.
Enduring vs. Non-Enduring: A Critical Distinction
A non-enduring power of attorney (also called a general power of attorney) ceases to have effect if the grantor loses legal capacity. This is counterintuitive — many people think they are protected if they sign "any" power of attorney. But a non-enduring document is useless for the very situation most people are trying to plan for: mental incapacity due to dementia, stroke, accident, or illness.
An enduring power of attorney (EPA) remains in effect even if the grantor subsequently loses legal capacity — provided it is signed while the grantor has capacity. The EPA must explicitly state that it is intended to be enduring. This is the document that protects you if you become unable to manage your own affairs.
What an EPA Can Cover
An EPA can authorisize your attorney to:
- Operate your bank accounts and manage investments
- Pay bills, manage property, and deal with mortgage lenders
- File tax returns and deal with the Canada Revenue Agency
- Purchase or sell real estate on your behalf
- Manage a business or partnership interest
- Manage RRSP and RRIF accounts (with some limitations)
What an EPA Cannot Cover
An EPA does not cover healthcare or personal care decisions. The authority to make health and personal care decisions — including consenting to medical treatment, deciding where you live, and directing end-of-life care — is governed by a separate document: the Representation Agreement under the *Representation Agreement Act*.
When Does the EPA Take Effect?
An EPA can take effect immediately upon signing, or it can be a springing EPA that only takes effect upon the occurrence of a specified event (typically a declaration of incapacity by one or two physicians). A springing EPA adds a layer of protection against premature use, but it also introduces delay and administrative complexity at the moment your attorney needs to act urgently.
Choosing Your Attorney
This is one of the most consequential decisions you will make. Your attorney will have broad access to your finances and will act without daily oversight. Choose someone who:
- Is trustworthy and financially responsible
- Is unlikely to predecease you or become unavailable
- Understands your values and priorities
- Is willing and able to handle the administrative burden
Consider naming an alternate attorney in case your first choice becomes unable or unwilling to act.
Joint Attorneys
You can name two attorneys to act jointly (both must sign for any decision) or jointly and severally (either can act alone). Joint is more protective against misuse; jointly and severally is more practical if attorneys live in different cities.
Revoking an EPA
You can revoke an EPA at any time while you have legal capacity. Revocation must be in writing and communicated to the attorney. You should also notify any institutions (banks, land registries) that have been relying on the EPA.
Committee vs. EPA
If you become incapacitated without a valid EPA in place, your family must apply to the BC Supreme Court for a committeeship order under the *Patients Property Act*. This process is costly (legal fees, court application, annual accountings) and time-consuming — often taking months. An EPA eliminates this risk entirely for the price of an hour with an estate lawyer.
Risks of Misuse
Elder financial abuse often occurs through a power of attorney. An attorney is required to keep their own assets separate from yours, keep records, and act in your best interests. Consider naming a monitor — someone who can check on the attorney's conduct. The Public Guardian and Trustee also has oversight powers.
*This article is general information about BC estate law. It is not legal advice. Please consult a qualified BC estate lawyer for advice specific to your circumstances.*
A power of attorney authorizes someone to manage your financial and legal affairs. A representation agreement authorizes someone to make personal care and healthcare decisions on your behalf. You need both documents for comprehensive incapacity planning — one does not cover what the other covers.
The Power of Attorney Act sets out formal execution requirements including witnessing rules (your attorney cannot be a witness, nor can your spouse or immediate family member in certain circumstances). While you can technically use a form, errors in execution can render the document invalid at the worst possible time. Having a lawyer draft and execute the document provides certainty.
An enduring power of attorney does not have an expiry date — it remains in effect until revoked, or until the grantor dies (at death, the executor of the estate takes over). A non-enduring power of attorney ends on incapacity or death. Some people grant limited powers of attorney for a specific purpose or time period, which do expire.
Your family must apply to the BC Supreme Court for a committeeship order under the Patients Property Act. This is a formal court process, typically taking several months and costing thousands of dollars in legal fees. The appointed committee must report to the Public Guardian and Trustee annually. An enduring power of attorney avoids this entirely.
Yes. Spouses frequently name each other as attorney. However, if you and your spouse separate, you should revoke the EPA immediately — separation does not automatically revoke a power of attorney (unlike a will, where divorce revokes spousal gifts). Make sure your replacement document is executed before the old one is revoked.