Representation Agreement
What is a Representation Agreement and how is it different from a Power of Attorney?
While most people understand the significance of a Last Will and Testament, since a will only comes into play after your passing, there are other crucial planning documents that are for use during your lifetime that should be included in your estate planning. Alongside a will, there are vital documents designed for use during your lifetime that warrant inclusion in your estate planning.
One such document, crucial in British Columbia, is the Representation Agreement. This legal document empowers you to designate a representative who will assist or make decisions on your behalf concerning your personal healthcare. It stands as the sole method by which you can expressly select someone to act as your legal representative, managing your healthcare needs, particularly in anticipation of potential future incapacity.
This legally enforceable document allows a person (or people) of your choosing to represent your best interests, help you manage your affairs and, if necessary, make health and personal care decisions if you become ill, injured, disabled or otherwise incapable. As well as choosing your representative, the agreement can include specific personal or medical wishes that you may have.
Without a Representation Agreement, you relinquish control over who will assist you or make decisions on your behalf. The government still allows people to make decisions for you, but the person chosen by your doctor may not be your first choice to look after your personal care. Moreover, it may take away some of the burden and stress away from family and friends since they will know that you made these decisions for yourself ahead of time.
What is the difference between a Representation Agreement and a Power of Attorney?
No one can predict when medical, financial, or legal challenges may arise. Being prepared for such eventualities is crucial to safeguarding your assets and personal wishes in the event of illness or incapacity, when you may be unable to make decisions for yourself.
Two important incapacity planning documents are Two important incapacity planning documents are Representation Agreement and Power of Attorney. While they are both very different, they are commonly confused and it is important to know the difference between them.
These documents are both legally binding, recognized by the courts and are there to safeguard serve to protect your finances and health in times of incapacity. A Representation Agreement empowers individuals of your choosing to make decisions concerning health and personal care, whereas a Power of Attorney grants authority to manage legal and financial matters.
Power of Attorney allows someone else to manage all aspects of finances, including bank accounts and property. This power includes paying bills, making tax returns, claiming benefits, day-to-day banking, borrowing money, and even buy or sell real estate.
Who Should I Appoint in my Representation Agreement?
The person or people you appoint will be able to make vital decisions about matters like:
- Who would you like to make your health care decisions for you if you aren’t able to yourself?
- If you are unable to be cared for at home, what type of facility would you prefer to live in?
- Are there any medical treatments you would consent/refuse upon recommendation by a healthcare provider?
- Are there any medical treatments you would to choose to withdraw?
Because of the nature of these decisions, many people choose a spouse, partner, family member or trusted friend to be their representative. There are a few restrictions in place to prevent paid caregivers or healthcare facility employees from being named in the agreement.
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