Difference between revisions of "Four Key Duties of a Fiduciary"

# Keep good records

Under [http://canlii.ca/t/849l the law], you have a duty to act honestly and in good faith. Because Martina has placed trust and confidence in you and has given over power to you, the law imposes a duty on you to honour that trust.  

Understand when the power of attorney starts. It may be right away or only on some “triggering event”—for example, when Martina can no longer make her own decisions (this type is called a “springing power of attorney”). Check to see if the power of attorney document says how you will know when Martina can no longer make her own decisions.

Many things can affect your decisions about Martina’s money and property. For example, you might feel pressure from others. Martina’s abilities to make decisions might change from time to time.

For example, let’s say Martina’s taxable income for a year is $20,000. 10% of that amount would be $2,000. That amount is smaller than $5,000. So $2,000 would be the total maximum value of all gifts and loans (of the type Martina regularly made) you could make in the following year.  

Don’t pay yourself for the time you spend acting as Martina’s attorney, unless the power of attorney allows it. [http://canlii.ca/t/849l The law] says that you can be paid for acting as an attorney '''only if''' the enduring power of attorney document says you can and sets out the amount or rate.  

Note that even if you are not paid for your time, you are entitled to be paid back for any reasonable out-of-pocket expenses. For example, let’s say you use your own funds to buy a journal or chequebook to be used for Martina’s benefit.

As Martina’s attorney, you might pay bills, oversee bank accounts, and pay for things she needs. You might also make investments, pay taxes, collect rent or unpaid debts, get insurance if needed, and do other things written in the power of attorney.  

* unpaid credit card bills and other outstanding loans  

Keep Martina’s money and property safe.  

A “[http://seniorsfirstbc.ca/for-professionals/supported-decision-making/gradual-counselling/ gradual counselling]” approach might help Martina. In this approach, you clarify and reflect her thoughts and feelings. You help her to recognize the pros and cons of various options, and how they relate to her goals and values.

If any of Martina’s property is part of a specific gift in her will, you should not dispose of this property unless necessary to meet your duties as her attorney.