It’s not uncommon for an individual to name one or several Powers of Attorney (POAs) as they age. It’s a term most Canadians are familiar with, though the exact responsibilities of the role may be unclear—even if you’ve appointed one already or have been named as a POA yourself. Today, we’d like to discuss the responsibilities of a Power of Attorney in Ontario including those appointed for financial and health-related reasons.
Whether you’re considering appointing a POA for financial or health-related needs, or are considering accepting the role of Power of Attorney for a loved one, you should start with a complete understanding of what the role entails. We recommend speaking to an expert who is familiar with your situation—a doctor, wealth advisor or lawyer, for example—but in the meantime, here’s a brief overview of the responsibilities of a Power of Attorney in Ontario.
What is a Power of Attorney?
While people often refer to selected individuals as their “Power of Attorney,” the term actually refers to a legal document. As the Government of Ontario details: “A power of attorney is a legal document that gives someone you trust the right to make financial or health care decisions for you. This trusted person does not have to be a lawyer to be your attorney.”
This trusted person may be colloquially referred to as your Power of Attorney for finance or health, though the specific terms are Power of Attorney for Property and Power of Attorney for Personal Care.
What are POAs responsible for?
In Ontario, there are two forms of Power of Attorney: one that deals with personal care and another dealing with property. It is possible to select the same person for both positions or select two different people based on their abilities and relationship to you.
A Power of Attorney for Personal Care has the authority to make decisions regarding your health care, accommodation, food, clothing, personal hygiene, safety, and other matters relating to you if at any time you are unable to make those decisions yourself.
A POA of Personal Care is extremely critical if there is an unexpected change in a family member’s health or if they need more help to make daily decisions. This individual must know what you want and value.
A Power of Attorney for property (finance) has the following responsibilities:
- Paying your bills and collecting any money that is owed to you
- Managing your bank accounts and investments on your behalf
- Managing and/or selling your property as needed
- Filing your annual income taxes
In Ontario, the Power of Attorney for Property can immediately come into effect unless otherwise specified on the document. There are individuals who prefer to include provisions that the POA will only be effective if they are mentally incapable. This is another reason why legal advice is important before signing or accepting the role.
A Power of Attorney ends at death. The will and estate trustee then deal with estate matters instead.
How do I choose a POA?
There are several qualifications that your Power of Attorney has to meet. They must:
- Be at least 18 years old to make a Power of Attorney for Property
- Be at least 16 years old to make a Power of Attorney for Personal Care
- Be mentally capable of managing your affairs
There’s a lot more to the role than paperwork, so it’s critical that you appoint someone (or multiple people) who understand your wants and needs and are likely to make decisions with your best interests at heart. It must be something responsible, reliable and trustworthy. Generally speaking, this is often a spouse, an adult child or grandchild, a longtime friend or a trusted professional such as your lawyer.
It is also possible to appoint multiple Powers of Attorney, for example, two or three of your adult children. If you appoint more than one person, then it is wise to clarify whether the decision making needs to be done together or independently. Consultation with a lawyer will help to avoid any confusion in future. If you’re struggling to make this decision, a lawyer can offer personalized guidance.
How to Set Up a Power of Attorney in Ontario
To make a Power of Attorney in Ontario, you must be of sound mind. In addition, you should be at least 18 years old to make a Power of Attorney for Property and at least 16 years old to make a Power of Attorney for Personal Care.
You have the option of drafting a Power of Attorney document on your own by utilizing Ontario’s free Power of Attorney kit or consulting with a lawyer. It is highly advisable to seek legal advice in case of complicated financial, property, family or health matters.
Prior to setting up a Power of Attorney, please take into account the following recommendations:
- Determine which kind of POA you need, property, personal care or both
- Select a person you trust and talk to them first before naming them
- Write down any wishes or instructions you want your attorney to understand
- Sign the correct Ontario Power of Attorney documents
- Discuss the forms with a lawyer if your case is complicated
- Store the signed documents in a secure place and inform your attorney about their location
It is also possible to revoke or alter a Power of Attorney as long as you are of sound mind. In case you wish to alter the POA, consult a legal professional to ensure that the new documents are valid.
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