Power of Attorney for Property
Powers of Attorney documents are governed by the Substitute Decisions Act 1992 and modifying case law as established from time to time.
Power of attorney is a document which becomes relevant when a person loses capacity (mental or physical) or otherwise becomes a vulnerable person who experiences difficulties performing tasks and making decisions. In such cases, the attorney (the designated person in the power of attorney document) will be able to step up and assume the role of making decisions for the benefit of the donor.
A power of attorney document can be limited in the scope of operation or unlimited. It could relate to dealing with one property or all the properties owned by the donor. Everyday functions are also covered in a power of attorney for property document such as paying debts, collecting debts, dealing with bank accounts and real property and obtaining information.
The attorney, acting for the donor is obligated to act in a diligent and honest manner and for the benefit of the donor. All the action undertaken by the donor must be taken in light of these high standards.
The attorney must remember to place the interest and well being of the donor first in every decision made for him. It would be prudent to prepare a management plan or otherwise principles of managing the donor’s property in his favour.
The attorney must document every expense made from the property of the donor and confirm that those serve the support and care of the donor, or is required for the donor’s dependants. Debts and other obligations may also be satisfied from the managed property.
Paper trail is important when managing the donor’s property. Every expense must be well documented, receipts kept, and absolute separation of the donor’s money from the attorney’s property.
The attorney may receive compensation for his work in managing the donor’s property. The fee is a prescribed one, however, exceptions could be made if written consent is granted by the public attorney and other figures involved.