You Have Been Appointed as an Attorney: Difference between revisions
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You Have Been Appointed as an Attorney (view source)
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==A scenario== | ==A scenario== | ||
[[File:Martina---Manading-your-Money.png|thumb|100px|left| link=| <span style="font-size:50%;">]] | |||
Let’s start with a scenario about how you might have become an attorney under a power of attorney.  | Let’s start with a scenario about how you might have become an attorney under a power of attorney.  | ||
Your family member or friend is worried that she will get sick and won’t be able to pay her bills or make other decisions about her savings and her house. For this guide, let’s call her '''Martina'''. Martina has signed an '''enduring power of attorney'''. This kind of power of attorney continues if person making it becomes mentally incapable. In it, Martina names you as her attorney. She gives you the power to make decisions about money, property and other legal matters for her. | Your family member or friend is worried that she will get sick and won’t be able to pay her bills or make other decisions about her savings and her house. For this guide, let’s call her '''Martina'''. Martina has signed an '''enduring power of attorney'''. This kind of power of attorney continues if person making it becomes mentally incapable. In it, Martina names you as her attorney. She gives you the power to make decisions about money, property and other legal matters for her. | ||
The law gives you a lot of responsibility as Martina’s attorney under her power of attorney. You are now a fiduciary with '''fiduciary duties'''. | The law gives you a lot of responsibility as Martina’s attorney under her power of attorney. You are now a fiduciary with '''fiduciary duties'''. | ||
==What is a fiduciary?== | |||
Having been named to manage money and property for someone else, you are a fiduciary. You are in a position of trust toward Martina. The law requires you to manage Martina’s money and property for her benefit, not yours. | |||
When you act as an attorney for Martina, you have four key duties you must keep in mind: | |||
# Act honestly, in good faith and in Martina’s best interest | |||
# Manage Martina’s money and property carefully | |||
# Act within the authority you are given and within the law | |||
# Keep good records | |||
These duties are explained in the section “Four Key Duties of a Fiduciary”. They apply whether you are managing a lot of money or a little. They apply whether you are a family member or not. | |||
If you do not carry out these duties, you could be removed as an attorney, sued or have to repay money. | |||
It is even possible that the police or a public official (the [http://www.trustee.bc.ca Public Guardian and Trustee]) could become involved. They can investigate you and bring you before a court. | |||
It’s always important to remember: '''It’s not your money!''' | |||
==Before you start== | |||
Before you first act as an attorney, consider the job you are about to take on. Consider the nature of the fiduciary duties you will have to follow and the potential for difficulties to arise. | |||
For example, consider whether acting as attorney is likely to put you in situations where your personal interests conflict with your fiduciary duties. | |||
Consider how difficult the task is likely to be. Take into account things such as: | |||
* the value and nature of the adult’s property | |||
* how organized their affairs and papers are | |||
* views of family members and concerned friends, and the potential for disagreement among them | |||
* if there are multiple attorneys, the potential for disagreement with them | |||
Consider whether the power of attorney provides for the attorney to be paid for their time. [http://canlii.ca/t/849l The law] says that you can be paid for acting as an attorney under an enduring power of attorney '''only''' if the document says you can and sets out the amount or rate. | |||
If you decide not to act as attorney, you may resign. You can do so by giving written notice to the adult and any other attorneys named in the enduring power of attorney. If the adult is incapable of making decisions at the time you resign, you must also give written notice of the resignation to a spouse, near relative or (if known to you) close friend of the adult. | |||
{{Managing Someone Else's Money Navbox}} | {{Managing Someone Else's Money Navbox}} | ||