What is a power of attorney?

A power of attorney is a legal document which gives someone the power to act on your behalf. This person is called your “attorney”.

You can give someone a power of attorney for property if you want that person to help you manage your finances or if you are worried about becoming unable to manage your finances yourself. You may also grant a power of attorney for property for a limited period of time or for limited purposes. For example, if you plan to be abroad for a while, you may wish to appoint someone to manage your property only while you are away. “Property” includes your money, your home if you own one and anything else of value that you own.

What can my attorney for property do?

Unless you limit your attorney’s authority they can do almost anything with your property that you could do yourself. However, your attorney cannot make or change your Will or give a new power of attorney.

A power of attorney for property does not let your attorney make decisions about your personal care. For example, your attorney cannot decide where you will live or the medical care you receive. To name someone to make those decisions if the need arises you must give that person a power of attorney for personal care.

What is a general power of attorney for property?

A general power of attorney for property lets your attorney manage finances and property only while you are mentally capable. If you become mentally incapable of managing your property the general power of attorney for property ends and your attorney can no longer act. This type of power of attorney is usually used in business or for short-term temporary reasons.

What is a continuing power of attorney for property?

By granting a continuing power of attorney for property, the attorney is authorized to carry on acting for you even if you become mentally incapable of managing your property.

To be valid for this purpose the document must either be called a continuing power of attorney or state that it gives your attorney the authority to continue acting for you if you become mentally incapable.

When does a continuing power of attorney for property take effect?

The power of attorney takes effect as soon as it is signed and witnessed unless you state in the document that you want to take effect at a later date. For example, if you want it to take effect only if you are abroad you must make this clear in the power of attorney.

Powers of attorney documents are often kept in a safe place to use only in case of mental or physical incapacity at a later date.

Whom can I appoint as my attorney?

You can appoint anyone as attorney who is 18 years of age or older. It is important to give careful thought to whom you choose. Ask yourself: is the person trustworthy and good at handling money? Are they willing to act as your attorney? Do they expect to be paid? The answers to these other questions may help you choose your attorney.

Can I appoint more than one attorney?

Yes, but if you appoint more than one person as your attorney all of your attorneys will have to agree before any decision can be made on your behalf unless you state in document that they can make decisions separately. When two or more attorneys must agree on a decision they are said to be acting jointly. When the power of attorney states that the attorneys may make decisions together or separately they are said to act jointly and severally.

What if my attorney cannot or will not act for me when the time comes?

When you make your continuing power of attorney for property you can name a substitute attorney. This person can step in if your first attorney or attorneys are not willing or unable to act. The substitute attorney will have the same powers as the original attorneys. You can even also name more than one substitute attorney.

At Heydary Hamilton PC we are experts at preparing powers of attorney, wills and related documents. Call for an appointment or more information to help ensure that your wishes will be understood and carried out.

Douglas J. Green

Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.