Power of Attorney for Property: Power and Responsibility
What Is a POA for Property?
As explained in an earlier article, there are two kinds of POA documents in Ontario:
- a Power of Attorney (POA) for property, and
- a Power of Attorney (POA) for personal care.
Each serves a different purpose.
The person making the POA is called a “grantor” and the person named to make decisions is called an “attorney.” The named attorney is usually not a lawyer, but rather a friend or family member of the grantor.
Unlike a Will, which takes effect after one dies, a POA takes effect during one’s lifetime.
A POA for property is a document by which a person gives property and financial decision-making authority to someone else. Property decisions include decisions like paying bills, buying or selling a house or car, banking, investing and more. Unless the POA document expressly states that it is only to be used for limited purposes, it gives authority to do anything with a person’s assets that the person can do, except make a Will.
In some jurisdictions, the power of attorney for property might be called a “financial power of attorney,” a “general power of attorney,” a “continuing power of attorney,” or an “enduring power of attorney.”
Reasons to Make a Power of Attorney for Property
You may want another person to handle financial transactions for you for any number of reasons. Common reasons include
- if you are temporarily out of the country and need another person to sign financial documents on your behalf
- if you have a physical condition that impairs your ability to go to the bank yourself.
While you have capacity, you can instruct the person named in the POA to act on your behalf, as your agent.
Continuing Power of Attorney a.k.a. Enduring Power of Attorney
The POA for property can also be used after you’ve lost capacity provided it is drafted as a “continuing” or “enduring” POA. This means, your attorney can act as your agent while you have capacity, and can continue to act as your substitute decision-maker once you’ve lost capacity.
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