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2. By drafting a Power or Attorney, you are giving "donees" legal right to carry out transactions on your behalf. In most areas, you can stipulate powers that you are allocating. Typically, Powers of Attorney include right to sell or purchase real estate and other assets, right to make payments of bills and debts, and right to manage investments of various sorts.
3. Typically you can identify two people to have power of attorney, as well as appointing a substitute in case something happens to one of first two. Some advisors recommend appointing three donees to work jointly in management of your affairs. Ideally, one donee should be a family member or friend who has your best interests at heart. The other should be someone who is connected to business and who is familiar with day to day operations. The third recommended donee is accountant who handles company's books.
4. When drafting document, be very clear what powers you are giving donees. Avoid "gray areas" or areas that could be open to interpretation.
5. Make sure that at least one of your donees knows where Power of Attorney document is kept.
6. In most areas, Powers of Attorney can be Continuing or Limited. Continuing Powers of Attorney usually take effect from date of signing and remain in effect after a person becomes incapacitated. Limited Powers of Attorney give donee authority to act only under certain circumstances. Limited powers could include real estate transactions, complex investments like term deposits, RRSP contributions, and so on.
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