What is a Power of Attorney?

A Power of Attorney is an important legal document that allows a person to appoint someone they trust to make decisions on their behalf. In Ontario, the two documents are created during a person’s lifetime and provides authority over Property decisions and Personal Care decisions if the individual becomes incapable. Although the term Attorney is used, it does not refer to a lawyer. Instead, it refers to any trusted person who has been granted legal authority. Because incapacity can occur unexpectedly, having this document in place ensures that decisions regarding finances and personal wellbeing can continue without unnecessary delays.

Clarifying the Role

Being named as an Attorney carries important responsibilities, and understanding the scope of this authority is essential before the need to act arises. In Ontario, the term Attorney simply refers to a trusted individual chosen to act on behalf of someone if that person becomes incapable of making decisions. A Power of Attorney for Property grants authority to handle financial matters such as paying bills, maintaining property, and managing accounts, while a Power of Attorney for Personal Care allows the appointed person to make decisions regarding health care, living arrangements, nutrition, and general wellbeing. These documents take effect as soon as they are signed, which is why they are often stored securely with clear instructions about when they may be released. They can also be revoked at any time as long as the person remains capable. Understanding the responsibilities associated with this role is essential, and legal guidance is available to ensure that attorneys act properly and in accordance with Ontario law.

Why These Documents Are So Important

If a Power of Attorney is not in place and a person later becomes incapable, the Office of the Public Guardian and Trustee may need to intervene to manage their financial or personal care decisions. This process can lead to added cost, delays, and stress for loved ones. By creating a Power of Attorney in advance, an individual ensures that someone they trust is authorized to assist when needed. This proactive step provides clarity, reduces uncertainty, and makes it far easier for families to support and protect the person’s wishes.

Your Responsibilities as a Power of Attorney

Acting as an Attorney carries significant duties. You must always act in the best interests of the person who appointed you, keep records of decisions and financial transactions, manage property responsibly, and follow the instructions outlined in the document. 

Attorneys for Personal Care are also required to consider the individual’s values, beliefs, and prior wishes when making decisions on their behalf. These obligations exist to protect vulnerable individuals and ensure that decisions are made with integrity and transparency. Choosing a Power of Attorney for Property is an important decision that requires careful consideration. The appointed attorney is responsible for managing financial matters such as paying bills, handling bank accounts and investments, filing taxes, and maintaining property. They must always act in the grantor’s best interests, keep detailed records, and avoid conflicts of interest. When appointing multiple attorneys, it is important to understand the difference between joint and joint and several appointments, and to name backup attorneys in case the primary attorney is unavailable. Safeguards and accountability measures exist to prevent misuse, and attorneys may be entitled to compensation depending on the arrangement. Careful planning and selecting the right person ensures that financial affairs are managed responsibly and according to the grantor’s wishes.

The Importance of Proper Planning

Creating a Power of Attorney is an essential step in a complete estate plan. It ensures that your financial affairs, personal care, and medical decisions will be managed by someone you trust. Meeting with an experienced estate lawyer will help you understand what type of Power of Attorney is appropriate, how it should be structured, and what safeguards should be included to protect your interests.

Final Note: This article is intended for general information only. For advice tailored to your situation, contact Erin L. Watson, a qualified legal professional at Johnston Montgomery Watson.