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 “property” (financial) and “personal” (health).
What are POAs responsible for?
There are two distinct types of Power of Attorney documents. You can appoint the same person (or people) for each document or choose different Powers of Attorney for your healthcare vs your finances. First, let’s review the responsibilities associated with a personal (health) power of attorney document.
- Making decisions about your healthcare including end of life decisions (typically, respecting the wishes and direction of the person they are making decisions for)
- Make decisions about housing (for example, booking an in-home caregiver)
- Make decisions about your nutrition, clothing and other personal needs
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
Setting up a POA does not mean it’s immediately active—it must be officially activated, sometimes under the supervision of a lawyer. The document is typically activated when the grantor (the person who is giving responsibility to a secondary decision-maker) becomes incapable of handling their own affairs, requests activation of the POA for their own convenience (for example, so their adult children can manage their banking for them) or because the grantor has died. Please note that paperwork can be filed to revoke a Power of Attorney document if there is reason or desire to do so.
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 (for property/finance)
- Be at least 16 years old (for personal/health)
- 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) though one should have veto power in case there is a disagreement over your care or financial management. If you’re struggling to make this decision, a lawyer can offer personalized guidance.
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