A power of attorney is a contract in which a person (mandator) authorizes another person (mandatary) to represent and perform certain act on behalf of the mandator. This contract allows the mandatary to manage the financial and legal affairs of the mandator (Germain c. Perron, (C.S., 1941-02-10), 47 R.L. (n.s.) 206). There are many reasons why you might want to choose someone to look after your legal and/or financial affairs. For example, you might want to go on a long vacation and want someone to take care of your property while you’re gone. You might also feel at ease that someone more experienced than yourself takes care of your financial affairs.
Power of attorney is not subject to any particular forms (Caisse populaire des Deux Rives c. Société mutuelle d’assurance contre l’incendie de la Vallée du Richelieu, J.E. 90-1411, [1990]). This means that it can be given orally or in writing. The written document will vary depending on the complexity of the subject matter. However, the following information should normally be included: the date on which the document is signed, the expiry date, the name of the mandatary, the name of the mandator, a description of the authority given to the mandatary.
There are three types of power of attorney: the specific, the general, and finally the bank-related one.
Specific Power of Attorney
A specific power of attorney occurs when a specific task is assigned or a specific authorization is granted for a specific period of time. For example, you might want to entrust your mandatary with the task of selling your house or you give him the task of paying your bills for three months. The mandatary will only be able to act on your behalf if he does so for the purpose of performing one of these tasks.
General Power of Attorney
A general power of attorney is, unlike a specific one, very broad in nature. Thus, the mandator entrusts the management of his personal affairs to the mandatary without setting a clear objective (such as selling a house). This means that the mandatary can act on behalf of his or her mandator in almost any situation. The mandator must act with caution when choosing this type. Indeed, he must have confidence in his representative and supervise his actions, because this type involves risks of financial abuse.
Bank-related power of attorney
The bank-related power of attorney is made in the presence of you, your mandatary and an employee of the banking institution you have chosen. This type allows your mandatary to have access to your bank account. This allows the mandatary to carry out transactions on your behalf (making deposits, withdrawals from your account, paying your bills, writing checks, etc.). This type carries the risk of financial abuse. Therefore, you should carefully monitor the transactions your mandatary carries out on your behalf.
This blog post contains only general information, please don’t take it for a legal advice. For all legal questions regarding your particular situation do not hesitate to consult your lawyer.
