Without an Enduring Power of Attorney, the costly and time consuming process you will have to go through is Committeeship. In this post, we’ll be breaking down what this is and some of the costs associated with it.
If an adult goes through a car crash, stroke, or other event that causes them to be mentally incapable, they won’t be able to take care of their financial and personal issues. If they sign a Power of Attorney or Representative Agreement ahead of time, they will assign somebody to take care of their financial and health issues, respectively.
But what if they don’t sign one of those documents?
A close family member will have to prove to a court that they will be responsible with the incapacitated person’s personal and financial matters. This process can cost up to $15,000 in legal counsel, court time, and paperwork.
Had the incapacitated person signed a Power of Attorney or Representative Agreement, they wouldn’t need to attain committeeship.
There are two types of committeeship appointments:
A committee of person only makes personal and medical decisions (e.g. person's location of residence, or types of health care treatments the person may receive).
A committee of estate makes financial and legal decisions.
If you're interested in a Power of Attorney Agreement to avoid committeeship, take a look at our website or give us a call at 604-674-7755.
Bijan Law is a general practice law firm in downtown Vancouver. We can help you out whether you're entering a partnership for investment, starting or purchasing/selling a business, want to keep wealth within your family, immigrate to Canada, or resolve a dispute.