A representation agreement is a legal document that gives someone you trust the power to make important decisions for you when you are not able to. It is an important part of comprehensive estate planning. You might believe that naming an executor in your will is enough to ensure your wishes are carried out. But your executor's power only comes into effect when you die. Who will act on your behalf if you can no longer make decisions while you're still alive?
Until the Representation Agreement Act came into effect in 2000, you would have used an enduring power of attorney to give financial decision-making powers to someone you trust. The power of attorney allows you to appoint a person to act on your behalf in financial, legal and property matters but it is limited in the authority it provides. If you have a power of attorney, it remains in effect until you cancel it. Living wills and advance directives stated how one wished to be treated in the areas of health and personal care prior to 2000, but were not legally binding. Representation agreements now provide a legal basis for an adult to give someone else authority to make financial and health decisions on their behalf.
You can make a representation agreement that gives general powers or one that gives limited powers. If you choose to make a representation agreement with limited powers, your representative cannot buy or sell real property or refuse life supporting care and treatment on your behalf. A representation agreement with general powers allows you to give authority to your representative to make decisions about:
• health care, such as treatments you might want or not want,You can make a representation agreement if you are at least 19 years old and capable of making an agreement. If your agreement has general powers, you must consult a lawyer for the agreement to be valid. If your agreement has limited powers, you do not have to consult a lawyer; however, obtaining independent legal advice is always a good idea.
Unless you state otherwise in your representation agreement, it will come into effect as soon as it is signed and witnessed. If you do not want the agreement to come into effect immediately, you must describe the circumstances under which it will come into effect. In the meantime, you will continue to manage your own affairs.
When choosing your representative, you need to consider carefully the kinds of things you'll want done for you, and who would be best able to do those things. The person you choose must be someone you trust, as well as someone who understands your values and beliefs.
The Representation Agreement Act says that a representative must:
• act honestly and in good faith,
• use the care, diligence and skill of a reasonably prudent person, and
• do only those things that the agreement allows.
You can change or cancel your agreement any time, as long as you are capable of doing so. If you do make changes to your agreement, they must be signed and witnessed in the same way as the original agreement. If you want to cancel your agreement, you must do so in writing to your representative.
The Public Guardian and Trustee of British Columbia website at www.trustee.bc.ca provides more information about representation agreements and other estate planning documents. Further sources of information on representation agreements are the Representation Agreement Resource Centre (www.rarc.ca) and the People's Law School (www.publiclegaled.bc.ca).
Representation agreements now provide a legal basis for an adult to give someone else authority to make financial and health decisions on their behalf.
The Hospice Society is grateful to Chairman Brian Daybell for bringing this information to us.