Power of Attorney

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New Rules about Power of Attorney by Andrea E. Frisby with Legacy Tax + Trust Lawyers

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<ul><li> 1. Powers of Attorney: Making the new Act work Presented By: Andrea E. Frisby Legacy Tax + Trust Lawyers 510-609 Granville Street Vancouver, BCV7X 1M6 Tel: (604) 631-1298</li></ul> <p> 2. Introduction </p> <ul><li>Statutory changes </li></ul> <ul><li>Setting up the EPA </li></ul> <ul><li>General duties </li></ul> <ul><li>Specific duties </li></ul> <ul><li>Specific new tools </li></ul> <p> 3. Setting up the EPA </p> <ul><li>Who is the client </li></ul> <ul><li>Witnessing issues </li></ul> <ul><li>What should the attorney know </li></ul> <ul><li>When do the duties start </li></ul> <ul><li><ul><li>Effective date </li></ul></li></ul> <ul><li><ul><li>Springing powers </li></ul></li></ul> <ul><li><ul><li>Existing Powers </li></ul></li></ul> <p> 4. General Duties</p> <ul><li><ul><li>Codified in the Act section 19 </li></ul></li></ul> <ul><li><ul><li><ul><li>Fiduciary</li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li> Honestly and in good faith </li></ul></li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Standard of care reasonably prudent person </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Must act within the authority given in EPA </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Liability for breach section 22 </li></ul></li></ul></li></ul> <p> 5. Specific duties </p> <ul><li>Investment </li></ul> <ul><li><ul><li>Investment authority must be express </li></ul></li></ul> <ul><li><ul><li>Default is section 15.1 ofTrustee Act </li></ul></li></ul> <ul><li><ul><li>Delegation of investment authority section 23(2) </li></ul></li></ul> <ul><li><ul><li>Interplay with duties to keep assets and not interfere with the will </li></ul></li></ul> <p> 6. Specific duties cont. </p> <ul><li><ul><li>Involving the adult </li></ul></li></ul> <ul><li><ul><li><ul><li>what does this mean for attorney </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>potential for conflict </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li> current wishes vs. known beliefs </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>McMullen v. Webber </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>direction from court section 36(1)(a) </li></ul></li></ul></li></ul> <p> 7. Specific duties cont. </p> <ul><li>Records requirements </li></ul> <ul><li><ul><li><ul><li><ul><li> reasonable effort once acting </li></ul></li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li>collect, assemble and keep records of financial transactions </li></ul></li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li>catch up requirements for current attorneys </li></ul></li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li>liability </li></ul></li></ul></li></ul></li></ul> <p> 8. Supervision </p> <ul><li>Enhanced supervision of attorneys </li></ul> <ul><li><ul><li>report to Public Guardian and Trustee </li></ul></li></ul> <ul><li><ul><li><ul><li>investigation authority </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>failure to comply with duties </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>remedies </li></ul></li></ul></li></ul> <p> 9. Specific New Tools </p> <ul><li>Gifting provisions section 20 </li></ul> <ul><li><ul><li>Regulation, section 3 </li></ul></li></ul> <ul><li><ul><li>Modest authority </li></ul></li></ul> <ul><li><ul><li>How does attorney ascertain pattern of giving confirm criteria with Adult </li></ul></li></ul> <ul><li><ul><li>Interplay with gifts under Will - section 19(3)(d) </li></ul></li></ul> <p> 10. Specific New Tools cont. </p> <ul><li>Designating beneficiaries limited power to fix technical problem </li></ul> <ul><li><ul><li>Desharnais v. Toronto Dominion Bank </li></ul></li></ul> <ul><li><ul><li>Best interests of adult </li></ul></li></ul> <ul><li><ul><li>Litigation potential </li></ul></li></ul> <ul><li><ul><li><ul><li> test for court to change beneficiary </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>what is a similar instrument </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>interplay withinter vivosplanning and/or wills variation </li></ul></li></ul></li></ul> <p> 11. Specific New Tools </p> <ul><li>Information and records </li></ul> <ul><li><ul><li>Incapability of Adult </li></ul></li></ul> <ul><li><ul><li>An area of authority granted to attorney </li></ul></li></ul> <ul><li><ul><li><ul><li>estate planning and Will </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Solicitor-client privilege </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>non-disclosure section 33 </li></ul></li></ul></li></ul> <p> 12. When do the duties end? </p> <ul><li>Revocation, suspension or termination </li></ul> <ul><li><ul><li>Revocation in writing to the attorney section 28 </li></ul></li></ul> <ul><li><ul><li>Resignation - section 25 </li></ul></li></ul> <ul><li><ul><li>Suspension or termination </li></ul></li></ul> <ul><li><ul><li>Liability and improper use </li></ul></li></ul> <p> 13. Conclusion </p> <ul><li>Codified duties </li></ul> <ul><li>New specific tools </li></ul> <ul><li>More information and knowledge to both Adult and attorney </li></ul> <ul><li>Standards for process </li></ul> <ul><li>Accountability </li></ul> <p> 14. Questions? </p> <ul><li>Everything should be made as simple as possible, but not simpler. </li></ul> <ul><li>Albert Einstein </li></ul>