Committeeship - Costs and FAQ's
In our blog post on Power of Attorney, we discussed how foregoing POA could be highly inconvenient and expensive. 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. This article on dialalaw.peopleslawschool.ca breaks it down nicely:
“A committee of person can make only personal and medical decisions, including decisions about where the person will live or whether to accept health care treatment. Usually a family member or close friend will fill this role. Only the court can appoint a committee of person.
A committee of estate can make only financial and legal decisions. A family member or close friend, a trust company, or the Public Guardian and Trustee of BC can fill this role. A committee of estate can be appointed by the court. The Public Guardian and Trustee can also be appointed as committee of estate by a certificate of incapability under the Adult Guardianship Act. No one else can be appointed this way.”
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.