When we think about estate planning, many people focus on their Will. But planning for what happens during your lifetime in the event of loss of capacity is just as important. In British Columbia, a Power of Attorney is a key document that protects you if you become unable to manage your financial, property and legal affairs.

What Is a Power of Attorney?

A Power of Attorney (often called a “POA”) is a legal document that allows you to appoint another person (called your “attorney”) to act on your behalf with respect to your financial, property and legal matters.

Your attorney may be authorized to:

• Pay your bills and manage day-to-day banking;
• Sell or manage your real estate;
• Handle investments;
• File taxes;
• Manage business interests; and
• Enter into contracts on your behalf.

In most estate plans, we prepare an Enduring Power of Attorney, which is valid from the time it is signed by you and continues to be valid even if you lose mental capacity. In British Columbia, Powers of Attorney are governed by the Power of Attorney Act.

A Power of Attorney can be broad, covering all of your financial affairs, or limited to a specific purpose, such as authorizing someone to complete a real estate sale while you are out of the country.

Why a Power of Attorney Is So Important

Many people assume their spouse or adult children can automatically step in and manage finances if something happens. In reality, without a Power of Attorney, no one has automatic authority to deal with your bank accounts, investments, or property, even close family members.

If you become incapable without a POA in place, your loved ones may need to apply to court under the Patients Property Act to be appointed as your committee. This court process can be costly, time-consuming, and emotionally stressful.  Alternatively, the Public Guardian and Trustee may step in and take over such decision-making authority and charge you a fee for such service.

A complete estate plan is typically comprised of a Power of Attorney, a Representation Agreement and a Will:

• Your Power of Attorney appoints an attorney to assist with you financial, property and legal matters during your lifetime.
• Your Representation Agreement appoints a representative to assist you with health and personal care decisions during your lifetime.
• Your Will takes effect after death.

Having all three documents in place ensures there are no gaps in your planning.

Incapacity can happen unexpectedly, whether due to illness, accident, or age-related decline. Putting a Power of Attorney in place now gives you control over who will manage your affairs and how.

Learn more about estate planning 101 https://sitkalaw.ca/estate-planning-101-beyond-the-will/

Get Started Today

Our estate planning lawyers at Sitka Law Group are here to help. Contact us to schedule an initial consultation and ensure your future, and your family, are protected.

We’re conveniently located on Shelbourne Street, near the intersection of Victoria, Oak Bay, and Saanich.

This article is current as of April 1, 2026, and it is intended for general information purposes only. It is not intended to provide legal advice and should not be considered legal advice. Readers with concerns about how this affects particular situations or transactions should obtain the independent review and advice of legal counsel.