October 15th 2019
A Power of Attorney is a legal document which permits a person to make decisions on your behalf if you are unavailable or lack capacity. An attorney has an important role, and for this reason it is often a family 
member or very close friend. The law in Ontario recognizes two areas of decision making, decisions with respect to property and those involving personal care. This article will explore the Power of Attorney for Property (POAP).
There are two main reasons to designate an attorney to act on your behalf with respect to the management of your property and other financial matters. Sometimes, individuals are away from home for extended periods of time and have difficulty managing their property. Such challenges can be alleviated through the use of a POAP. The grantor may select someone to act on their behalf even while they are mentally capable. The attorney could sign real estate documents, enter contracts, or attend the bank to make mortgage payments on behalf of the grantor, to name only a few uses of the POAP.
A second reason to designate an attorney under a POAP is to have a trusted individual act for you when you have lost capacity. Individuals may lose the ability to designate an attorney altogether, which can lead to a 
more time consuming and costly process whereby family members must be designated as a Guardian by the court. Whenever a power of attorney is intended to endure despite the grantor’s illness, the document must be called a Continuing Power of Attorney for Property (CPA), or state clearly that the attorney is permitted to act in the event of the grantor’s mental incapacity.
A CPA will be effective as soon as it is validly signed and witnessed, unless the document has restrictions. For instance, a grantor may state the CPA comes into effect only after the grantor has been determined incapable of managing their own property. A grantor should specify how their incapacity will be determined, such as a letter from a family doctor. While this restriction is one way to ensure an attorney does not use the document improperly, any restrictions may cause delays, which can be frustrating for an attorney if there is an urgent situation they need to act on.
A grantor may consider designating multiple attorneys under their CPA so that decisions are made with the 
consent of all. One positive in this approach is that decision making is unanimous, so the risk of any one individual acting fraudulently or contrary to the best interest of the grantor can be minimized. A downside of requiring joint decision-making is that for practical purposes, all attorneys must be present together to sign documents, issue cheques on your behalf, or attend the bank. In addition, if attorneys disagree, decision making could be stalled or more costly for all involved. Sometimes the single voice of a trusted person is a simpler approach to facilitate the interests of the grantor.
A power of attorney is a different document from your will, as your will is only effective when you pass away. For this reason, it is common to have a power of attorney drafted at the same time as you prepare your Last Will and Testament. It is best to meet with a lawyer to assist in the preparation of your power of attorney, so be sure to visit liddiardlaw.ca and see how I may be of service.
Michael Liddiard, BA MA JD | Liddiard Law Professional Corporation | michael@liddiardlaw.ca