Vancouver Foundation

ASK AN ADVISOR AN ENDURING POWER OF ATTORNEY ("POA") instrument is a common and excellent estate planning tool. It allows an individual to appoint a person (the "attorney") to deal with the individual's financial and legal affairs. e attorney can act on behalf of the individual at any time the individual requests or, commonly, after the individual suffers a loss of mental capacity. POAs are governed by the Power of Attorney Act (BC) (the "Act"). e Act imposes certain restrictions on the activities of the attorney, which should be taken into consideration both in determining whom to appoint as an attorney and in accepting this role. ese include the following: 1. An attorney is required to keep records and produce them at the adult's request. is includes records relating to joint assets, even if the attorney is the other joint owner. 2. An attorney must keep the adult's property separate from the attorney's property, unless the property is a pre-existing joint asset. 3. An attorney may only invest assets in accordance with the authorized investments under the Trustee Act, unless the POA instrument states otherwise. In this regard, particular attention should be paid to restrictions in dealing with private company shares. 4. An attorney may not dispose of property which the attorney knows is subject to a specific gift in a Will, unless necessary to comply with the attorney's duties. 5. An attorney may not transfer real property to himself or herself, unless the POA specifically authorizes this. 6. An attorney has no authority to make, change or revoke a Will. 7. An attorney cannot delegate his or her responsibility to another person; however, the attorney may retain professionals to assist. 8. An attorney may only charge fees for acting as attorney if the POA specifically allows for compensation and sets out the amount or rate of compensation. 9. An attorney may only make gifts or loans to third parties or charities if: (a) the attorney is satisfied there will be sufficient property remaining to meet the adult's care, and (b) the adult made gifts or loans of that nature while competent, and (c) the gifts or loans fall within the amounts prescribed by the legislation (which is currently set as the lesser of 10 per cent of the adult's taxable income for the previous year and $5,000.00). 10. An attorney can only make beneficiary designations on behalf of the adult if: (a) authorized by the court; (b) renewing, replacing or converting a similar instrument which appoints the same beneficiary (for example, where moving a policy from one institution to another); or (c) making a designation in a new instrument that names only the estate as the beneficiary. An attorney appointment is a powerful and significant one that should be carried out with care and attention. Seek professional advice when appropriate. Ingrid Tsui is a Partner at Alexander Holburn Beaudin + Lang LLP Enduring Power of Attorney Instruments in British Columbia: What an Attorney Can and Cannot Do By inGrid tsui, LL.b., teP Photo: Courtesy Ingrid Tsui 2 0 1 7 I V a n c o u v e r F o u n d a t i o n l p a g e 2 7 LASTING LEGACIES We are honoured to acknowledge donors who include Vancouver Foundation as a beneficiary of their estate, RRIF, RRSP or life insurance policy. In 2016, these individuals left a lasting legacy for the community through Vancouver Foundation. WITH GREAT APPRECIATION, WE REMEMBER: Charlotte Jane Banfield Mary Isabel Buckerfield White John Carter Muriel Collins Corinne Eriksson Kathleen Hogan William Leith Leonard McCann Dorothy Ritchie Karl Springer Joan Turner John and Edythe Walker Betty Yue

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