Representation Agreements
A Representation Agreement is a document that allows an adult to choose a person (or persons) to make decisions for them. It is similar to an Enduring Power of Attorney in that regard, but it also allows the Representative to make decisions regarding your health and personal care. You can also specify that it only becomes effective on the happening of a later event, such as your subsequent mental incapability. As of February 28, 2000, these documents are valid, if made in compliance with the Representation Agreement Act and Regulations.
The Representation Agreement Act sets out procedures for the creation, execution and challenge of a Representation Agreement. As well, the Act lowers the level of capability needed to enter into a "standard" Representation Agreement (which would cover most day to day financial affairs and minor health care issues) to something less than the capacity to enter into a contract. However, most people will want to make an "enhanced" Representation Agreement to cover all matters.
An adult may also appoint another person to become a Monitor to try to make sure the Representative carries out their duties. In order to make a standard Representation Agreement, a person must appoint a Monitor unless the Representative is the adult's spouse. If they do not appoint a Monitor for a Standard Representation Agreement, the Public Trustee may choose someone or become the Monitor by default.
All Enduring Powers of Attorney and Representations Agreements made before proclamation will be grandfathered. Enduring Powers of Attorney continue to be a tool option.
Certain changes have been made to the Act since it originally passed third reading in 1993. As well, the forms of Certificates for witnesses, representatives and monitors have now been established.
We recommend that all clients consider making a Representation Agreement as part of your normal estate planning. Our firm has been very involved on behalf of the Canadian Bar Association in the consultation and review of this new law. If you wish to make a Representation Agreement, we would be pleased to assist you. Please contact our office to make an appointment