Five things to consider when starting a business

Five things to consider when starting a business

Starting a business is a busy and exciting time. It is easy to get caught up in implementing the great ideas that you have for your business and overlook some key legal considerations.

Our corporate and commercial law professionals can walk you through the details relevant to starting your business so that you can get started on the right foot and protect your investment over the long term.

Five things to consider when starting a business include:

1. How will your business be structured?

The three basic business structures are:

  • corporation
  • partnership
  • sole proprietorship.

A corporation provides some protection against personal liability, but comes with some additional expenses and there are various jurisdictions in which you can decide to register. A partnership is only an option if you have a partner. A sole proprietorship may be the best option for a small business with fewer anticipated liability issues.

2. What tax considerations do you need to be aware of?

You will most likely need to register with the federal government for a GST/HST number and be prepared to collect and remit GST. In Alberta, the current GST rate is 5% and there is no provincial sales tax.

The way your business pays you may affect the personal income tax that you incur. For example, if you decided to register your business as a corporation, you have the option of paying yourself a salary, dividends or a combination of the two. The choice you make will have different consequences for the income taxes paid both by yourself and by the corporation.

3. Do you need to hire employees?

Having an employee comes with its own list of legal considerations, including the need to be familiar with:

  • requirements surrounding withholding taxes and remitting them to the government
  • employment or labour laws and your responsibilities as an employer
  • worker safety requirements and workers’ compensation laws
  • any mandatory certification, training or registration with regulatory bodies that your employees must have
  • hiring practices and human rights considerations.

4. What licenses and permits do you need?

Most towns require that you obtain a business licence in order to carry on business of any kind in that town. This is likely true even for home-based businesses or if your business is based in another town.

Depending on the nature of your business, you may need a number of other permits and licenses in order to do business. For example, if you intend to open a bar, you will need a liquor licence. There are various classes of licence, depending on which specific services your business will provide.

5. What are your insurance and liability concerns?

Depending on the needs of your business, your insurance needs may vary from protecting your inventory from accidental damage to protecting your business from professional liability claims. Having adequate insurance is vital to protecting the time and money that you invest in your business.

Depending on the nature of the business you plan on starting, you may have different concerns than the above listed five things to consider when starting a business. Contact our corporate and commercial law team today to arrange for a consultation!

Mergers: legal implications when consolidating your entity

Mergers: legal implications when consolidating your entity

Both mergers and acquisitions are mechanisms used to combine two corporations together. In the case of a merger, or amalgamation, two corporations get together and continue their combined operations as a new, third entity. In an acquisition, one corporation purchases the other and absorbs the resources and functions of the purchased corporation.

Both Alberta’s Business Corporations Act and the Canada Business Corporations Act use the term “amalgamation” rather than “merger.” Businesses can be incorporated under either federal or provincial legislation, so the procedures for merging two or more businesses may vary depending on which legislation applies.

Benefits of merger or amalgamation

What are the possible benefits of merging your business with another? There are a number of reasons for amalgamating two corporations, including:

  • combining complementary resources, products or services to improve the client experience
  • improving efficiency and lowering overhead expenses
  • obtaining access to a new market or geographical area
  • scaling up the manufacturing processes
  • avoiding duplication of services.

If you are not sure whether an amalgamation is the best move for your business, our corporate and commercial lawyers are here to help you understand mergers and the legal implications when consolidating your entity.

Short-form and long-form amalgamation

A long-form amalgamation requires the two corporations to sign an amalgamation agreement, which must be approved at a shareholder meeting. The amalgamation agreement sets out the terms of the proposed amalgamation and must contain specific provisions. If the proposal is approved by the shareholders, the articles of amalgamation of the new corporation must contain the provisions that were agreed on as set out in the amalgamation agreement.

A short-form amalgamation is only available to related corporations that wish to merge. A vertical short-form amalgamation can take place between a holding company and a wholly-owned subsidiary. A horizontal short-form amalgamation can take place between two or more wholly-owned subsidiaries of the same holding company. These amalgamations can often be done quickly and easily as they can be approved by a resolution of the directors and the articles of incorporation remain the same as one of the amalgamating corporations.

Legal considerations for merging businesses

In addition to ensuring that the formal requirements for amalgamation are met, a corporate and commercial lawyer can help you to understand the other legal implications that might be relevant to your merger, including:

  • tax considerations
  • employment, labour and pension law considerations (particularly if the merger will result in redundancies in your work force)
  • securities law considerations
  • competition law considerations.

Mergers of two or more companies are generally thought to benefit Canadian consumers by increasing competitiveness. Many of the benefits of amalgamation listed above result in better service, better products or better prices for clients and customers. However, the Competition Bureau of Canada has the jurisdiction to review mergers to ensure that they don’t result in reduced competition in a given market. If the Commissioner of Competition has concerns about the effect of a particular merger on competition, they can apply to the Competition Tribunal for an order to stop, dissolve or change the terms of the merger.

Contact our corporate and commercial lawyers today to learn more about mergers and the legal implications when consolidating your entity.

How to stay protected as a contractor: understanding the Builders’ Lien Act

How to stay protected as a contractor: understanding the Builders’ Lien Act

The Builders’ Lien Act is designed to provide builders with a simple way to ensure they get paid for their work without having to resort to expensive and complicated litigation. A contractor, subcontractor, labourer or supplier of materials who does not receive payment under their contract as agreed can register a builders’ lien against the title to the property at the Land Titles Office. The legislation provides a mechanism for the property to be sold if necessary to pay the owner’s debts to those with liens against the property.

While the legislation was designed to make life easier for builders, it can still be intimidating for those starting out. Our construction law professionals can ensure that you have a comprehensive understanding of the Builders’ Lien Act and how to stay protected as a contractor.

Are you a contractor?

Not every individual invited to build or improve a building is a contractor under the Act. The contractor is the person or company that entered into a contract with the owner of land to do work or provide materials to improve the land. A labourer is not a contractor, even if they are hired directly by an owner. A labourer is anyone employed for wages in any kind of labour.

A subcontractor is a person that is contracted with or employed under a contract but is neither:

  • a contractor
  • a labourer
  • a person who only provides materials (for example, the lumber supply store)
  • a person who only provides a service.

A subcontractor is hired and paid by the contractor, rather than by the owner directly.

What protection does the Act provide to contractors?

A builder who does work or provides material to improve land or a building attached to land is protected under the Act by the ability to file a lien against that land. The lien prevents the owner from selling the land (and the builder’s work or materials, which are now attached) without first dealing with the lien.

In order to take advantage this protection, the contractor must:

  • register the lien within the specified time period (currently 45 days after the work is completed)
  • preserve the lien by starting an action against the owner in respect of the unpaid contract
  • enforce the lien by applying for an order from the court.

Holdbacks

Because the owner is often not personally responsible for paying every subcontractor, labourer and material supplier involved in their project, the Act provides for the owner to hold back a certain amount of the contract price until the work is substantially completed. That way, if the general contractor fails to pay the subcontractor installing the plumbing, the owner of the property has some funds set aside to pay that debt and can have the subcontractor’s lien removed from title.

A contractor needs to understand when and how to issue a certificate of substantial performance in order to have the holdback released when a job is complete.

Prompt payment and other changes coming in July 2021

The Government of Alberta has recently enacted major changes to the Builders’ Lien Act, which are currently scheduled to be in force in July 2021. These changes include:

  • time limits to ensure that contractors and subcontractors are paid promptly
  • an extension of the period in which a lien must be filed (from 45 days to 60 days)
  • a formal adjudication process to help resolve the payment of disputed amounts without the courts.

If you have any questions related to how to stay protected as a contractor, understanding the Builders’ Lien Act or the changes to the Act that are coming this year, contact our Edmonton construction law lawyers today!

Enlisting a legal guardian to look after your child: what you need to know

Enlisting a legal guardian to look after your child: what you need to know

There are several reasons why you may need to recruit a guardian for your child. Many parents choose to plan for unforeseen events by naming a guardian for any minor children (or adult children who are unable to care for themselves due to a disability) in their will. You may also find yourself unable to continue caring for your child during your lifetime.

If you are fortunate, the child has another involved parent and the choice as to who will be the child’s guardian if something prevents you from caring for your child is easy. For more information about what you need to know about enlisting a legal guardian to look after your child, contact one of our family law lawyers today.

What is a legal guardian?

A child’s guardian is responsible for ensuring that the child has everything they need such as food, shelter, clothing and medical care. The guardian is also responsible for:

  • providing emotional, physical, psychological and financial support and guidance
  • making major decisions about the child’s cultural, linguistic, religious and spiritual heritage
  • making decisions relating to the child’s education
  • making decisions relating to where the child will live (and with whom)
  • providing consent for the child’s medical care
  • providing consent for legal purposes and representing the child in a lawsuit.

How to transfer guardianship of a child

In Alberta, a child’s parents are automatically the child’s guardians. A person can also become a guardian if:

  • they are appointed by a court order, or
  • they are named in a will written by the child’s parent or guardian as a replacement guardian for the child (this must be confirmed by the court).

When you transfer guardianship of a child, the guardianship duties can be divided. In some circumstances, it might make sense to appoint one guardian who is in charge of the child in most respects and will care for the child’s person, but to appoint a second person who is in charge of a specific aspect, such as the child’s finances or legal concerns.

How to choose a legal guardian for your child

Most parents choose a replacement guardian for their child from among their close family and friends. Ideally, the replacement guardian should be someone with whom the child already has a close relationship. If the child is at least 12 years old, the court will ask the child’s opinion before appointing or approving a guardianship order, so take your child’s wishes into consideration.

Other factors that you may wish to consider include:

  • the child’s age
  • the age of the guardian
  • specific needs the child may have and the guardian’s ability to accommodate those needs
  • where the guardian lives and their willingness to relocate if necessary
  • how the child will fit into the guardian’s life and the guardian’s willingness and ability to make any necessary changes
  • the guardian’s personal beliefs and outlook with respect to raising a child, religion, spirituality, education and anything else that is particularly important to you.

It is generally a good idea to nominate an alternate guardian, just in case your first choice becomes unable or unwilling to accept the child’s guardianship.

If you fail to appoint a replacement guardian, the court will choose one for you if necessary. The person chosen by the court may not be the person you or your child would have preferred. One of our family law professionals can tell you everything you need to know about enlisting a legal guardian to look after your child. Contact us today.

How Will Grandparents’ Time With The Grandchildren Be Affected By Your Divorce?

ow Will Grandparents’ Time With The Grandchildren Be Affected By Your Divorce?

Divorce will bring many changes into your life and the lives of your children. One of the things affected by a divorce or separation may be the time that your children used to spend with their grandparents or other members of their extended family. These changes can be caused by several factors, including:

  • changes to living arrangements, which may mean that your children are no longer living in close proximity to a grandparent or other close relative
  • parenting schedules, which may leave a parent with less time to spend with their children and scheduling in visits with grandparents may not be an immediate priority
  • damaged relationships between one or both parents and extended family members, which may leave a parent unwilling to arrange visits between the grandparents and the children.

If you are concerned about how the grandparents’ time with the grandchildren will be affected by your divorce, then our team of Edmonton family law lawyers can help.

What is a contact order?

Depending on the circumstances, once the parents and children get over the upheaval of the divorce, visits with grandparents might resume. However, in situations where the relationship between one or both divorced or separated parents and the grandparents has broken down, a contact order may be necessary.

A contact order is an order from the court that designates time in a child’s schedule to spend with a grandparent or other person with whom the child has a significant relationship.

A contact order is not the same as a parenting order because it is not relating to someone in a parental role. A grandparent or other person with a contact order does not automatically get to make day-to-day decisions relating to the child during contact.

Who can apply for a contact order?

A contact order is available under both the federal Divorce Act, which applies only to married couples who are divorcing, and Alberta’s Family Law Act.

An application for a contact order can be initiated by:

  • a parent or guardian of the child (on behalf of the grandparent or other non-parent), or
  • a grandparent or other non-parent with whom the child has a significant relationship.

In order for someone other than a parent or guardian of the child to make an application for a contact order, the person must ask permission from the court. This mechanism is in place to prevent unnecessary litigation.

A grandparent, however, does not require the permission of the court to ask for a contact order if the grandparent’s contact with the child has been disrupted by the separation of the child’s parents or the death of one of the child’s parents.

A court will only grant a contact order to a grandparent against the will of the parents in very specific situations. A grandparent must be able to show the court that the order is in the best interests of the child, which can be difficult to prove.

Both parents and grandparents are often concerned about how a divorce will affect the time they spend with their grandchildren. Allow our team of family law professionals to answer all your questions about how the grandparents’ time with the grandchildren will be affected by your divorce. Contact us today!

Changes to the Divorce Act Shed Light on the Importance of Respecting Cultural and Spiritual Heritages

Changes to the Divorce Act Shed Light on the Importance of Respecting Cultural and Spiritual Heritage

Cultural and spiritual heritages have been considered throughout history to be the glue of our country. Culture and spirituality bind our communities and create shared spaces for individuals to feel a sense of belonging and togetherness. The direct impact cultural and spiritual heritages and communities have on a child’s ability to succeed have been widely researched. It has been proven that the more supported and included children feel, the more likely they are to be empowered to succeed. Therefore, it is important to consider your cultural and spiritual heritages' impact on your child when proceeding with your custody legal matters. Our Edmonton divorce lawyers are prepared to assist you with your divorce and joint custody; call us today, 587-410-2500 for a consultation.

Divorce Act Amendment

As of March 1, 2021, the Divorce Act has been amended to focus on the importance of a child’s cultural, linguistic, religious, and spiritual upbringing and heritage. This amendment includes a child’s Indigenous upbringing and heritage. If you are a family involved or included in cultural or spiritual communities and are considering getting a divorce you should reflect on how you will continue to honour your heritage.

The Divorce Act was amended to focus on how cultural and/or religious traditions or communities can pose as a support system for children. The change in the Act allows for shared custody parenting arrangements to be altered to accommodate and reflect cultural aspects of communities and the family's involvement in those communities. For instance, a key factor for the court to determine a family's child custody arrangements may be the ability of a parent to educate their child on their cultural, linguistic, and religious heritage. Another important factor is the parent's ability to foster and encourage a child to develop their own cultural identity and self-esteem. In the case of a family filing for divorce under these pretenses, a court would decide how to weigh each factor, dependent upon the effects of the factor on the child’s well-being.

Indigenous Upbringing and Heritage

The amendment, specifically, mentions Indigenous upbringing and heritage. Indigenous culture and heritage are honoured widely across Canada. It is pertinent for Indigenous children to have the opportunity to learn from their elders and be immersed in their cultural and spiritual heritage. The importance of involvement in the extended family is another consideration when the court is deciding upon parenting arrangements.

Your Spouse Does Not Hold the Same Values and Beliefs, How to Create a Parenting Agreement to Suit this Predicament?

In some cases, one spouse does not hold the same values and beliefs; therefore, it is important to consider the effects that this could have on your child’s cultural or spiritual journeys. It may be a consideration for you and your spouse to plan and schedule the major holidays or observation periods that your religion or culture requires in your family plan. In Alberta, this plan is called a Parenting Agreement, which outlines cultural and spiritual holidays and observation periods, living arrangements, parenting schedules, vacation and travel, health care, and education plans for the child that both spouses will adhere to. This arrangement can also include but is not limited to family pet arrangements, electronic device usage, dietary restrictions, extended family visits, and when to introduce a child to a new partner or potential step sibling. A key component to note in the parenting plan is the level of communication expected between the parties. Specifically, how frequently will you remain in contact, what methods of communication will you use, when is appropriate to contact one another, what information will be communicated between spouses, how to talk to your child and what information will be communicated. The final consideration for communication is what to do in emergency situations. Our Edmonton divorce lawyers can assist you with drafting your Joint Parenting Agreement.

If creating the Parenting Agreement with your spouse is not an option for your family, you have the opportunity to petition the court to create a Parenting Agreement for your situation. The court will develop a parenting plan that suits the best interests of the child.

Contact One of our Edmonton Divorce Lawyers for Legal Assistance Today

Our Edmonton divorce lawyers offer legal services that can prepare you for your divorce and answer your questions regarding parenting arrangements. We are available when you need us to ensure that your family is the top priority. Whether you have begun the divorce proceedings or are deciding on the best approach - Verhaeghe Law Office may be able to help you. If you require services related to divorce law, please contact one of our Edmonton divorce lawyers today by filling out a consultation form or calling us at: (587) 410-2500.

*Disclaimer: Please note that this page is not intended to constitute legal advice. The page provides a general overview of the legal service area. As each legal issue is independent and unique it is important to access qualified legal advice. We recommend that you contact a Verhaeghe divorce or family lawyer for any legal inquiries pertaining to divorce and family laws.

Recently Divorced and Considering Relocating With Your Children? How Mobility Rights In Alberta Will Affect Your Plans

Recently Divorced and Considering Relocating With Your Children? How Mobility Rights In Alberta Will Affect Your Plans

Divorce is a major life change and it can bring with it other major changes, including the need or desire to move to another town, province or country. Relocating with your children can have a big impact on the children’s relationships and their general well-being and you should consider your options carefully before planning a move.

Recent changes to Canada’s Divorce Act include a framework to deal with mobility applications in a way that aims to protect the relationships that children have with all of the important people in their lives.

If you are recently divorced and considering relocating with your children, contact our divorce lawyers to find out how mobility rights in Alberta will affect your plans.

What does it mean to relocate?

There is a difference between changing residence (moving to a different home) and relocating. Relocating is defined in the Divorce Act as a move that would be expected to have a significant impact on the child’s relationship with someone who has:

  • parenting time
  • decision-making responsibility, or
  • an order for contact with the child.

Do you have to give notice to the other parent before you move?

Before you move with your children, you will probably need to advise the other parent of your plans. In most cases, the other parent will have (at least) guardianship rights or decision-making responsibility with respect to the children. This means that you need to make major decisions affecting the children together. If they do not agree with your intended move, then you may need to get a court order.

If you have a written agreement that deals with parenting, or a court order under the Family Law Act (which would be the case if you were never legally married), then your agreement or court order should specify the notice that you are required to give the other parent before you relocate.

If you have an order under the Divorce Act, then there are formal notice and objection requirements that you must follow. Specifically, you must give 60 days’ notice of an intended relocation. If the other parent objects, they must provide formal notice of their objection to the move within 30 days, at which point a judge will make the decision about whether or not the relocation can proceed as planned.

If you move without notifying the other parent (even if you don’t have a parenting agreement or an order in place) you might be accused of abducting the children and a judge might decide that your actions were not in the best interests of the children, which might affect your parenting rights and responsibilities in the future.

How will the court decide if you can move with the children?

The court makes all decisions relating to relocating with children by determining whether the relocation is in the best interests of the children. To determine what is best for the children, the court will look at:

  • the reasons for the relocation
  • how the move will impact the child and the amount of time they spend with each parent and other important individuals, such as grandparents
  • how reasonable the proposed relocation is, taking into account factors such as the cost of travel
  • the wishes of the children (depending on their ages)
  • many other factors.

Pursuant to the new changes to the Divorce Act, a court hearing a mobility application under that Act is not allowed to consider whether you will still move if the court determines that the children are not allowed to go.

The laws in Alberta relating to mobility applications are complex and getting it wrong can have serious repercussions on your life. If you are recently divorced and considering relocating with your children, contact us to learn how mobility rights in Alberta will affect your plans.

Common Law Divorce In Alberta: What To Expect

Common Law Divorce In Alberta

In Alberta, we typically don’t use the word divorce in conjunction with a separating common law couple. A divorce is the court order that a married couple receives to legally dissolve their relationship. If you were never legally married, then you do not need to get divorced.

However, if you are in a common law relationship, or an adult interdependent partnership, and you wish to separate from your partner, then you should be aware of your rights and responsibilities. Our Edmonton area family and divorce lawyers can answer all your questions about what to expect from a “common law divorce” in Alberta.

What is an adult interdependent partnership?

In Alberta, the Adult Interdependent Relationships Act creates a relationship called the “adult interdependent partnership”, which replaces the common law marriage or common law relationship. An adult interdependent partnership does not have to have a conjugal, or sexual, element. It can take place between related individuals, such as siblings or a parent and adult child, or between friends.

An adult interdependent partnership is limited to two people and you cannot be in more than one at a time. You can enter into an adult interdependent partnership by:

  • written agreement (this is the only way for individuals related by blood or adoption to enter into an adult interdependent partnership)
  • live together in a “relationship of interdependence” for at least three years, or
  • live together in a relationship of interdependence of “some permanence” and have a child together (by birth or adoption).

Whether or not a relationship qualifies as a relationship of interdependence will depend on all the circumstances. A romantic or sexual relationship is not necessary, but it may be one factor that indicates a relationship of interdependence in some circumstances.

How to dissolve an adult interdependent partnership

Either partner can choose to end an adult interdependent partnership. If you have a written Adult Interdependent Partner Agreement, the agreement ends when the relationship ends.

An adult interdependent relationship can be dissolved by:

  • written agreement between the partners (this applies whether or not you entered into the partnership by written agreement)
  • living separate and apart from your partner for one year with the intention of ending the relationship
  • you get married (to each other or to another person)
  • you enter an Adult Interdependent Partner Agreement with another person (note that this is only effective if you are not a party to an existing Adult Interdependent Partner Agreement), or
  • a court makes a declaration of irreconcilability.

Factors to consider during your common law divorce in Alberta

What to expect when you separate from your adult interdependent partner:

  • if you have children with your partner, you will need to decide issues relating to the guardianship and parenting of the children as well as child support
  • you or your partner may claim spousal support from the other, depending on the circumstances of your relationship and your separation
  • as of January 1, 2020, property division laws that apply to married couples apply to those in an adult interdependent partnership as well
  • it is a good idea to redo your will, enduring power of attorney and any personal directives as soon as possible after you separate.

While you do not need a divorce, there are still many legal issues to consider when separating from your common law partner. Our legal professionals are here to help address your concerns. Contact us today!

What Are The Differences Between Common Law And Marriage In Alberta?

What you should know about changes to the Divorce Act
The laws relating to families and relationships can vary from province to province, leading to confusion regarding the rights of common law couples and how they differ from those of married couples.

If you have questions about what are the differences between common law and marriage in Alberta, our family law lawyers can help.

What Is An Adult Interdependent Partnership And How Do You Enter One?

In Alberta, the various laws relating to relationships use the term “Adult Interdependent Partnership” rather than “common law relationship.” There are various ways to enter into an Adult Interdependent Partnership with another person.

Two adults can enter into a written Adult Interdependent Partnership Agreement. If the adults are related by blood, this is the only method that they can use to enter such a relationship.

Otherwise, two adults become Adult Interdependent Partners when they have:

  • lived together continuously for at least three years in a relationship of interdependence, or
  • lived together in a relationship of some permanence and have a child together.

In the absence of a written agreement, the Adult Interdependent Partners may not be aware that they are in such a relationship. It happens automatically.

How Are Common Law Relationships And Marriage Treated In Alberta?

In Alberta, married spouses and common law spouses are treated the same under many laws including those relating to:

  • child support and spousal support (including the ability to apply to the court for support from the estate of a deceased spouse)
  • child custody and parenting schedules
  • the treatment of the family home
  • the division of property after a separation
  • the division of property when one spouse dies without a will
  • the benefits available to the spouse of a severely handicapped person under the Assured Income for the Severely Handicapped program
  • the ability to insure the life of a spouse and to receive certain insurance benefits
  • the right to receive benefits if a spouse dies in a workplace accident or is the victim of crime.

How is property divided for common law spouses after a separation?

In most provinces, property division after separation is one area where common law spouses and married spouses are treated differently. However, since January 1, 2020, changes to the law in Alberta ensure that individuals in an Adult Interdependent Partnership benefit from the same protection as married spouses when it comes to dividing assets after the breakdown of a relationship.

How Are Common Law Spouses And Married Spouses Treated Differently?

So what are the differences between common law and marriage in Alberta? After separation, married spouses must apply for a divorce in order to be eligible to marry again. In contrast, a common law relationship is dissolved automatically.

Alberta’s Dower Act applies only to married spouses. This law ensures that where one married spouse owns the matrimonial home, they cannot mortgage or sell the home without the agreement of the non-owning spouse.

Contact Our Edmonton Divorce Lawyers For Legal Help Today

Our team of Edmonton family and divorce lawyers is available to answer any questions you have about marriage, Adult Interdependent Partnerships and your rights in relation to either. Contact us today for immediate legal assistance.

*Disclaimer: Please note this content is intended to act as an overview on a legal topic and does not constitute legal advice. Please contact an Edmonton divorce lawyer for more specific legal advice as it pertains to your unique circumstances.

What Is a Personal Directive?

What Is a Personal Directive?

A personal directive is a document that allows the writer to name one or more persons to act as their "agent" and make personal decisions on their behalf in the event that the writer becomes unable to make such decisions. This is distinct from an enduring power of attorney, wherein a representative makes financial decisions on the writer's behalf.

If you so choose, and your named agent consents, you can register your personal directive with the Office of the Public Guardian and Trustee, which can make it easier for healthcare professionals to locate your agent in the event of an emergency.

Our Edmonton probates and wills lawyers may be able to answer any questions you have with respect to personal directives.

When Does the Personal Directive Take Effect?

In order to be valid, a personal directive must be made in writing and be signed and dated by both the person making the personal directive and a witness.

Your personal directive only comes into effect if and when you lose the mental capacity to make personal decisions on your own: for example, due to illness or accident. Your personal directive should name a person who can determine your mental capacity. If that person is not available, the Personal Directives Act provides for two service providers, at least one of which must be a physician or a psychologist, to make a written declaration that you lack mental capacity.

If you regain capacity, your agent and named service provider can issue a determination of regained capacity to make it clear that the personal directive is no longer in effect.

What Kinds of Decisions Are Covered by a Personal Directive?

You may use a personal directive to give your agent as much or as little power as you want. Your personal directive can leave detailed instructions for your agent to follow, or it can give the agent the power to make decisions based on what they think you would want or what they think are your best interests.

An agent can typically make decisions relating to:

  • - medical procedures and health care treatment
  • - where you live
  • - your recreation, social life, education or employment.

If you have minor children, you can name someone in your personal directive to act as their legal guardian while you lack capacity. This does not have to be the same person or persons that you have named as agents.

Considerations When Choosing an Agent

You are not limited to naming a single agent in your personal directive. You can name more than one person and require them to make decisions together. You can also enable your co-agents to make decisions on their own. This may allow one to act if the other is not available. Naming more than one agent has the potential to lead to conflicts and delays, so it can be a good idea to include a mechanism for resolving disputes in your personal directive.

An agent named in a personal directive is not required to act, so discussing this with your proposed agent ahead of time is recommended. It may also be a good idea to name a back-up agent.

Contact our Edmonton Probates and Wills Lawyers Today For a Consultation

Establishing a personal directive is an important matter that requires depth of consideration. Working with an Edmonton probates and wills lawyer may be vital to making sure you understand the legal intricacies of your decision. Whether you have any questions regarding a personal directive, or would like to begin drafting one for yourself, contact us for a consultation today.

*Please be advised that the content in this article is not intended as legal advice, but is a general overview on a legal topic. For legal advice, please consult with a lawyer.