April 8, 2025
What Is a Power of Attorney?
A Power of Attorney is a crucial legal tool that ensures your affairs are managed according to your wishes if you become incapacitated or are unavailable. Taking the time to create a POA now can save your loved ones significant stress and legal complications in the future
A Power of Attorney (POA) is a legal document that allows someone (the “attorney”) to make decisions on behalf of another person (the “grantor”). In Ontario, there are two main types of POA: one for property and one for personal care.
- Power of Attorney for Property: This authorizes an individual to manage your financial affairs, including paying bills, managing bank accounts, and making investment decisions.
- Power of Attorney for Personal Care: This grants authority to make personal care decisions for you, such as healthcare, housing, and other personal needs, if you become incapable of making those decisions.
Why Is a Power of Attorney Important?
A POA ensures that someone you trust can handle your affairs if you become unable to do so due to illness, injury, or incapacity. Without a POA, your loved ones may need to go through a lengthy and costly court process to obtain legal authority to manage your affairs. This can cause unnecessary stress and delays during critical situations.
Without a power of attorney, how will your bills be paid? Who will make decisions about your care?
How to Set Up a Power of Attorney in Ontario
Setting up a POA involves several key steps:
- Determine the Type of POA Needed
Decide whether you need a POA for property, personal care, or both. Some people choose different attorneys for each. - Choose a Trusted Attorney
The choice of attorney is an important decision.
Though the term “attorney” is used, this is not your lawyer. Pick someone you trust, who would make the same decisions as you would likely make if you were capable.
The person you appoint should be trustworthy, responsible, and capable of handling financial or personal care matters. You can appoint more than one person and specify whether they must act together or separately.
- Draft the POA Document
In Ontario, you can create a POA using a standard government form, draft one yourself, or have a lawyer prepare it to ensure clarity and compliance with the law. Having it drafted by a lawyer may help you decide on subjects such as when the POA takes effect. - Meet the Legal Requirements
- The grantor must be at least 18 years old for a POA for property and at least 16 for a POA for personal care.
- The document must be signed in the presence of two witnesses, who must also sign. Witnesses cannot be the appointed attorney, the attorney’s spouse, the grantor’s spouse, or anyone under 18.
- Store the POA Safely
While POAs do not need to be registered in Ontario, it’s essential to keep them in a safe but accessible place. Provide copies to the appointed attorney and inform key family members where it’s stored.
At Weilers LLP we store the original POAs for many clients.
When Does a Power of Attorney Take Effect?
A POA for property can take effect immediately or only when the grantor becomes incapable, depending on how it’s written. A POA for personal care only comes into effect if the grantor becomes mentally incapable of making their own personal care decisions.
Can a Power of Attorney Be Revoked?
Yes, a grantor can revoke a POA at any time as long as they are mentally capable. The revocation should be made in writing and provided to all relevant parties, including banks and healthcare providers.
What Weilers LLP Can Do to Help You
To ensure your POA is legally sound and reflects your best interests, consider consulting a Weilers LLP estate planning lawyer. The cost is modest, and even more advantageous when combined with a will. Give us a call and see if we are the right lawyers for you.