An Enduring Power of Attorney (EPA) is a legal document used to empower someone to make financial and property decisions on your behalf should you become mentally incapacitated or infirm. Your Attorney (this does not mean lawyer) has a fiduciary duty of loyalty to the person that created the EPA (the Donor). All decisions have to be made in the best interests of the Donor, and no one else.
We recommend that the Attorney keep detailed records in writing of all transactions involving the financial affairs and property of the Donor. These records should be readily available in the event any interested person requests information about the performance of the Attorney.
We include the following notes in an appendix to our EPAs, for the Attorney:
1. Keep a record of all financial transactions you make on the donor’s behalf.
2. When you start to act as Attorney:
a. Prepare an inventory of the donor’s property and debts at the date at current market values;
b. Keep a record of all income and other payments which you receive for the donor including amount and date of receipt.
c. Keep a record of all payments you make to the donor and other parties – including amount and date of payment and keep receipts;
d. Keep a record of all investments made by you for the donor.
3. Provide an accounting to any people to whom you are required to account in the EPA.
4. File annual returns with CRA and pay any assessed taxes.
5. Engage an accountant if necessary.
Please contact us if you have any questions about EPAs.