What is Power of Attorney?
Definition
| POA |
Purpose |
| Legal document |
Authorizes someone to act for you |
| Attorney (agent) |
Person you appoint |
| Principal (grantor) |
You (the person creating it) |
Why You Need One
| Without POA |
What Happens |
| You become incapacitated |
No one can manage your affairs |
| Bills need paying |
Bank can’t release funds |
| Medical decisions |
Family may disagree |
| Court involvement |
Guardianship proceedings ($$$) |
Types of Power of Attorney
Financial POA
| Also Called |
Province |
| Continuing POA |
Ontario |
| Enduring POA |
BC, Alberta, others |
| Mandate |
Quebec |
| What It Covers |
|
| Bank accounts |
Yes |
| Investments |
Yes |
| Real estate |
Yes |
| Tax filing |
Yes |
| Legal matters |
Yes |
Healthcare POA
| Also Called |
Province |
| POA for Personal Care |
Ontario |
| Representation Agreement |
BC |
| Personal Directive |
Alberta |
| Advance Directive |
Various |
| Mandate (healthcare) |
Quebec |
| What It Covers |
|
| Medical treatment |
Yes |
| Living arrangements |
Yes |
| Nutrition/hydration |
Yes |
| End-of-life care |
Yes |
| Organ donation |
May include |
When POA Takes Effect
| Feature |
Details |
| Effective |
Immediately when signed |
| Use case |
Need help now |
| Risk |
Attorney can act anytime |
Springing POA
| Feature |
Details |
| Effective |
Only upon incapacity |
| Trigger |
Defined event (doctor’s letter) |
| Benefit |
More control while capable |
| Limitation |
May delay access |
Enduring/Continuing
| Feature |
Details |
| Continues |
Through incapacity |
| Critical |
Most people want this |
| Without “continuing” |
POA ends if you’re incapacitated |
Creating a Valid POA
Requirements
| Requirement |
Details |
| Mental capacity |
Understand what you’re signing |
| Written |
Must be in writing |
| Signed |
By you |
| Witnessed |
Requirements vary by province |
| Dated |
Include date |
Provincial Witness Rules
| Province |
Financial POA |
Healthcare POA |
| Ontario |
2 witnesses |
2 witnesses |
| BC |
2 witnesses |
2 witnesses |
| Alberta |
1 witness |
1 witness |
| Quebec |
2 witnesses or notarized |
Included in mandate |
Who Cannot Witness
| Person |
Restriction |
| Named attorney |
Cannot witness |
| Attorney’s spouse |
Cannot witness |
| Minor |
Cannot witness |
| Beneficiary |
Varies |
Choosing Your Attorney
Important Qualities
| Quality |
Why Important |
| Trustworthy |
Will handle finances |
| Organized |
Manages paperwork |
| Available |
Can act when needed |
| Nearby |
Proximity helps |
| Financially stable |
Less temptation |
| Good judgment |
Makes decisions |
Who to Consider
| Option |
Pros/Cons |
| Spouse |
Knows you, joint interests |
| Adult child |
Often appropriate |
| Sibling |
Peer relationship |
| Close friend |
May be objective |
| Professional |
Accountant, trust company |
Multiple Attorneys
| Arrangement |
Details |
| Joint |
Must act together |
| Joint and several |
Can act alone or together |
| Successive |
Backup if first can’t serve |
Powers and Limitations
What Attorney Can Do (Financial)
| Action |
Generally Allowed |
| Pay bills |
Yes |
| Manage investments |
Yes |
| File taxes |
Yes |
| Sell property |
If authorized |
| Make gifts |
If explicitly allowed |
What Attorney Cannot Do
| Action |
Limitation |
| Make your will |
Never |
| Override your instructions |
No |
| Mix your funds with theirs |
Prohibited |
| Benefit themselves |
Unless allowed |
| Delegate authority |
Usually not |
Limiting Powers
| You Can |
Examples |
| Restrict scope |
Only banking, not real estate |
| Set conditions |
Only if I’m incapacitated |
| Require accounting |
Annual reports |
| Cap amounts |
Up to $X without approval |
Costs and Options
DIY Options
| Method |
Cost |
| Will kit (includes POA) |
$30-$50 |
| Online templates |
$0-$30 |
| Provincial forms |
Free or nominal |
Professional Options
| Service |
Cost |
| Online legal service |
$50-$150 per POA |
| Lawyer (single POA) |
$100-$300 |
| Lawyer (estate package) |
$500-$1,500 |
When to Use a Lawyer
| Situation |
Why |
| Complex assets |
Business, trust |
| Blended family |
Competing interests |
| Special needs |
Disability considerations |
| Prior disputes |
Family conflicts |
| Peace of mind |
Ensure validity |
Revoking POA
While You’re Capable
| Step |
Action |
| 1 |
Create written revocation |
| 2 |
Sign and date |
| 3 |
Notify attorney in writing |
| 4 |
Retrieve all copies |
| 5 |
Notify institutions |
If You’re Incapacitated
| Option |
Details |
| Attorney can’t self-revoke |
Need court |
| Family can apply |
To court |
| Public Guardian |
Can investigate abuse |
Attorney’s Duties
Legal Obligations
| Duty |
Meaning |
| Fiduciary duty |
Act in your best interest |
| Keep records |
Document all transactions |
| Avoid conflicts |
Don’t self-deal |
| Follow instructions |
As per POA document |
| Account if requested |
Provide records |
Signs of Abuse
| Warning Sign |
|
| Unexplained withdrawals |
|
| Missing assets |
|
| Unpaid bills |
|
| Changes to ownership |
|
| Isolation from family |
|
Storage and Communication
Keep Copies
| Who Gets Copy |
Purpose |
| You |
Master copy |
| Attorney |
Access when needed |
| Lawyer |
Safe storage |
| Bank |
On file |
| Family doctor |
Healthcare POA |
Register If Available
| Province |
Registry |
| BC |
Nidus Personal Planning Registry |
| Ontario |
No central registry |
| Alberta |
No central registry |