Fix account in the Power of Attorney

Aug 6th, 2022
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How to fix account in the Power of Attorney

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hey there im a state planning attorney paul ramilah and in this video were going to talk about how someone misuses or abuses the power they have under a power of attorney so weve seen it often an example where lets say mom signed a power of attorney and mom who created the power of attorney is called the principle and lets say in our circumstance mom granted power of attorney to daughter daughter is whats called the agent and that power of attorney abuse takes place when someone who has been given the power of attorney the agent takes an action that is not in the best interest of the person who gave the power of attorney called the principal so the agent under a power of attorney does have a legal duty to act in the best interest of the principal sometimes people ask me paul if if i give my son power of attorney that means he can just go to the bank and take all of my money and do whatever he wants to with it because i gave him power attorney well no it doesnt mean he has the ri

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Unless the power of attorney expressly excludes compensation, in Ontario an attorney for property is generally entitled to compensation at the following rates: 3% of income and capital receipts. 3% of income and capital disbursements. 0.6% per year of assets under management.
If you dont have any limitations in your power of attorney document, your attorney can do your banking, sign cheques, buy or sell real estate in your name, and buy consumer goods. Your attorney does not become the owner of any of your money or property. He or she only has the authority to manage it on your behalf.
Keep in mind, however, that if you give a POA to the same person who is joint on the account, the Attorney may be able to move funds from your other account to the joint account, potentially creating the risks mentioned above.
In general, the principals money or property cannot be transferred to themselves by either type of power of attorney. Note that this restriction applies regardless of whether the principal is alive or dead at the time they sign their power of attorney document.
Banks that are members of the Canadian Bankers Association (CBA) have agreed through a public commitment to make information about Powers of Attorney available to their customers. A Power of Attorney is a legal document that allows someone else (the Attorney) to act on your behalf.
In Ontario, there are restrictions on the types of financial transactions that a power of attorney can carry out. In general, the principals money or property cannot be transferred to themselves by either type of power of attorney.
In recognition of the time spent and the care taken to manage an incapable persons property, or to administer an Estate, Ontario laws provide that compensation (or an allowance) may be payable.
If the grantor is of sound mind and body, they can override or change a POA at any time.

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