Difference between revisions of "Glossary for Managing Someone Else's Money"

Revision as of 21:57, 19 March 2018

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Kevin Smith in January 2018.

Attorney: A person legally appointed or empowered to act on behalf of another. An attorney is a type of agent known as a fiduciary.

Enduring power of attorney: A legal document that enables an adult to appoint another person to make financial and legal decisions for them, and specifies that the appointment continues—or “endures”—in the event the adult becomes mentally incapable.

Fiduciary: A legal relationship where one person has an obligation to act for another's benefit.

General power of attorney: A power of attorney that gives general powers to the attorney for an unlimited period of time while the adult is mentally capable of managing their own affairs. It ends if the adult becomes mentally incapable.

Limited power of attorney: A power of attorney that limits the attorney’s powers to a specific task or a specific period of time—for example, to sign papers completing the sale of a specific property.

Power of attorney: A legal document that enables an adult to give another person (or more than one person) the authority to make financial and legal decisions for them.

Public Guardian and Trustee: A public body established by law to protect the interests of British Columbians who lack legal capacity to protect their own interests.

RRIF: A Registered Retirement Income Fund is an account registered with the federal government that gives a person a steady income in retirement.

RRSP: A Registered Retirement Savings Plan is a savings account registered with the federal government that allows a person to save money for retirement and lower their income tax.

Springing power of attorney: A power of attorney that only becomes effective when an event happens, such as a finding that the adult making the power of attorney is mentally incapable.

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 ;Capacity: A person’s ability to make their own choices and decisions.
-;Committee: A person or body (such as the Public Guardian and Trustee) appointed by the court to make legal, financial and medical decisions for someone who is mentally incapable and cannot manage their own affairs.
 ;Enduring power of attorney: A legal document that enables an adult to appoint another person to make financial and legal decisions for them, and specifies that the appointment continues—or “endures”—in the event the adult becomes mentally incapable.
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 ;RRSP: A Registered Retirement Savings Plan is a savings account registered with the federal government that allows a person to save money for retirement and lower their income tax.
-;Representation agreement: A legal document that enables an adult to authorize someone to make decisions for them when they can no longer manage on their own. The “representative” can make decisions relating to health care and personal care matters. With a “section 7 representation agreement”, the representative can also be authorized to handle “routine management” of financial affairs and most legal matters.
 ;Springing power of attorney: A power of attorney that only becomes effective when an event happens, such as a finding that the adult making the power of attorney is mentally incapable.