Navigating Power of Attorney Disputes in Alberta

Navigating Power of Attorney Disputes in Alberta. In Alberta, a Power of Attorney (POA) is more than a legal document—it’s a safeguard for your future. However, when disputes arise, they can threaten the very protection it was designed to offer. Understanding your rights, responsibilities, and the legal framework surrounding POAs is essential for peace of mind and family harmony. At Warnock & Associates, we help families navigate these often complex legal waters with clarity, compassion, and expertise.

Understanding the Importance of Power of Attorney in Estate Planning

A Power of Attorney gives someone the legal authority to manage your financial and legal affairs if you’re no longer able to do so. In many cases, this appointment is smooth and beneficial—but it can also lead to conflicts, especially if transparency or intent is called into question.

POAs are vital for aging individuals, those with chronic health conditions, or anyone preparing for unexpected life events. They ensure decisions can still be made in your best interest, even if you can’t make them yourself.

Common Causes of Power of Attorney Disputes

While POAs are meant to protect, they can become sources of disagreement and litigation. Here are some of the most common reasons disputes occur:

1. Mismanagement of Assets

Concerns may arise if the appointed attorney is seen to be misusing funds, acting recklessly, or putting personal interests ahead of the grantor’s.

2. Lack of Transparency

When the attorney fails to provide timely or clear accounting, family members may suspect wrongdoing or demand legal oversight.

3. Undue Influence

Disputes often stem from suspicions that the attorney manipulated or pressured the grantor into signing the POA.

4. Mental Capacity Concerns

Challenges may arise if the grantor’s mental capacity at the time of signing the POA is questioned by relatives or legal parties.

Legal Framework in Alberta: Powers of Attorney Act

In Alberta, the Powers of Attorney Act outlines legal requirements for valid POAs and the duties of the appointed attorney. This includes:

Fiduciary Duty: Attorneys must act in the best interest of the grantor, with honesty and diligence.
Record Keeping: Attorneys are required to keep detailed records of financial decisions and transactions.
Revocation Rights: A grantor with full mental capacity can revoke a POA at any time.
Court Oversight: Courts can intervene if the attorney fails in their responsibilities or abuses their authority.

Resolving Power of Attorney Disputes

Legal conflicts over POAs can be deeply personal and emotionally charged. These are the primary ways to seek resolution:

Mediation

Mediation can provide a more amicable resolution than litigation. A neutral third party helps both sides work toward a compromise.

Court Applications

If mediation fails, court intervention may be necessary to remove the attorney, appoint a new one, or impose restrictions.

Guardianship Applications

If no valid POA exists, or the one in place is under legal dispute, the court may appoint a guardian to manage the individual’s affairs.

Preventing Disputes: Best Practices

1. Choose Wisely

Appoint a trustworthy, capable person with strong integrity and financial acumen.

2. Communicate Clearly

Let your family and chosen attorney know your expectations and values up front.

3. Keep Documents Up to Date

As your life evolves, so should your estate documents. Regular reviews are essential.

How Warnock & Associates Can Help

At Warnock & Associates, we bring years of experience in estate planning, litigation, and dispute resolution. We support our clients through every phase of their estate journey, from initial planning to complex dispute handling. Our legal team provides: