A Representation Agreement is complementary to the Power of Attorney. Where Power of Attorney allows your attorney to make financial decisions for you, a Representation Agreement allows your representative to make Health Care decisions for you when you are no longer able to make these choices. A Representation Agreement also allows a limited amount of financial decision making. For example, your representative will be able to pay your cable but will not be able to sell your house. Unlike a Power of Attorney that can be effective immediately, a Representation Agreement only takes effect when a person becomes incapable.
A Representation Agreement is governed by the Representation Agreement Act. Under this Act, there are two types of Representation Agreements that a person can create.
• Section 9, Representation Agreement
• Section 7, Representation Agreement
The main difference is that a Section 9 Representation Agreement allows for broader power, and, under current regulations, may allow for the legal and financial powers that a Power of Attorney would have. Additionally, under a Section 9 Representation Agreement, the representative can have temporary custody of the donor’s children. What that means for the parent of the minor child is that if the parent is incapable, there is someone who can take care of the minor child until the parent recovers.
The choice between a Section 9 Representation Agreement and a Section 7 representation agreement most often depends on the donor’s mental capacity.
Common terms used in a Representation Agreement
Representative: A capable adult appointed by you to handle your financial, legal, personal care, and Health Care decisions, if you’re unable to make them on your own.
Monitor: A capable adult who makes sure that a representative is doing his job correctly.