Understanding Power of Attorney and its Importance in Alberta

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Understanding Power of Attorney and its Importance in Alberta

Legal matters are often complex, requiring individuals to seek advice and guidance from professionals in the field. One common legal topic pertaining to families, individuals, or businesses is the Power of Attorney (POA), a legally binding decision that can have extreme consequences. In this comprehensive guide, we will discuss the various aspects of Power of Attorney within Alberta and the importance of understanding its components when planning for future scenarios. At Hamilton Cahoon, our team of experienced lawyers is dedicated to assisting our clients through every step of the process, ensuring your understanding and comfort in navigating such potential challenges.

A Power of Attorney is a legal document wherein one individual (the grantor) appoints another individual (the attorney) to act on their behalf in matters involving financial and property decisions. This appointment can be temporary or permanent, depending on the individual's circumstances, needs, and preferences, and can be put in place for various reasons, such as planning for future incapacity or other scenarios where the grantor may not be able to manage their affairs.

In Alberta, there are two main types of Power of Attorney: General Power of Attorney and Enduring Power of Attorney. A General Power of Attorney provides the attorney with authority to act on behalf of the grantor for a specified period or during a specific event, typically becoming void if the grantor loses their mental capacity. In contrast, an Enduring Power of Attorney remains effective even if the grantor loses their mental capacity, ensuring that their financial and property affairs continue to be managed appropriately.

Understanding the different types of Power of Attorney and their implications is crucial to making informed decisions about your current and future affairs. It's essential to seek legal guidance from professionals with expertise in this area of law, such as our team at Hamilton Cahoon, to ensure that your Power of Attorney is tailored to your individual needs and circumstances. In this guide, we will delve deeper into the importance of having a Power of Attorney, explore scenarios in which it may be necessary, and discuss ways to prepare you for these potential situations.

1. The Importance of Having a Power of Attorney

A Power of Attorney is essential for several reasons, one of the primary ones being the ability to prepare for the unpredictability of life. No one can anticipate when an illness, accident, or change in circumstances may leave them unable to make decisions and manage their own affairs effectively. By addressing these possibilities in advance, you can ensure that your financial and property matters are in good hands. Furthermore, having a Power of Attorney can offer peace of mind, knowing that a trusted individual will handle your affairs according to your best interests.

Other benefits of a Power of Attorney include the following:

  • Reducing confusion or uncertainty in situations where multiple people may be involved in decision-making

  • Streamlining decision-making processes by appointing a single authority figure

  • Facilitating the execution of transactions and property management on your behalf

  • Protecting against potential exploitation by unscrupulous parties

2. How to Choose the Right Attorney for Your Needs

The attorney (or attorneys) you appoint to act on your behalf is a critical decision that should not be taken lightly. When choosing an attorney, consider the following factors:

  • Trustworthiness: Select someone with a history of responsible decision-making and integrity.

  • Competency: Choose an attorney well-equipped to handle financial and property matters under their purview.

  • Willingness: Ensure that the chosen attorney is willing and able to serve in this capacity should the need arise.

  • Compatibility: Aim for someone who understands your values and preferences and shares a similar decision-making philosophy.

In addition, if you have a sizeable estate or complex financial matters, it may be advisable to appoint a professional, such as a lawyer, accountant, or trust company, to serve as your attorney.

Remember that you can choose more than one attorney. You may appoint them to act jointly in all matters or assign specific aspects of your financial and property affairs to each one based on their expertise.

3. Drafting an Effective Power of Attorney Document

A well-drafted Power of Attorney document will help ensure that the attorney has clear guidelines and authority to handle your affairs in accordance with your preferences. Here are some factors to consider when developing your POA:

  • Specify the scope of authority: Clearly outline the areas of decision-making that your attorney will have control over.

  • Set guidelines and restrictions: Provide guidance or limitations on the attorney's decision-making, such as prohibiting certain investments or ensuring that specific beneficiaries are cared for.

  • Address potential conflicts of interest: Establish clear instructions or restrictions to minimize conflicts between your best interests and those of your attorney.

  • Consider including a "springing" clause: A "springing" POA only comes into effect upon the occurrence of a specific event or condition, such as the loss of mental capacity.

Consulting with a lawyer experienced in POAs can help ensure that your document is comprehensive, legally sound, and tailored to your unique circumstances.

4. Registering and Updating Your Power of Attorney

Once your POA document is drafted, it's crucial to keep it safe, accessible, and up to date. Here are some steps to help:

  • Inform your appointed attorney(s) and provide them with a copy of the document.

  • Store the original in a secure location, such as a safety deposit box.

  • Notify your bank, investment advisor, and any other relevant institutions of your POA and provide them with a copy, if necessary.

  • Review your POA periodically, especially if your circumstances change (e.g., divorce, death of your appointed attorney), and update it accordingly.


Navigating the complexities of POA legislation doesn't need to be overwhelming. By educating yourself about the essentials of Power of Attorney in Alberta and seeking guidance from experienced professionals, you can make informed choices about safeguarding your financial and property affairs.

Hamilton Cahoon is a Medicine Hat law firm that is passionate about assisting clients in taking control of their future decision-making. We can assist you in all your legal matters, including family law, civil litigation, personal injury, real estate & other legal matters. Reach out to us today for a consultation, and together, we can create a Power of Attorney that ensures your peace of mind and the well-being of your affairs.