A Continuing Power of Attorney for Property is one of the most powerful documents you can sign in Ontario. It allows someone else (your “attorney”) to step into your financial shoes and manage your assets if you become incapable — or even sooner, if you so choose. But while the attorney has broad authority, there are some very important limits.
Here’s an outline as to what attorneys can and cannot do under Ontario law.
✅ What Your Attorney Can Do
Once appointed, your attorney may handle almost every financial task you could do yourself:
- Manage everyday finances – pay bills, deposit cheques, and handle bank accounts.
- Invest your money – buy or sell stocks, bonds, or GICs.
- Deal with real estate – buy, sell, rent, or mortgage your property, unless your Power of Attorney limits this.
- Sign contracts – enter into agreements in your name.
- Run your business – continue to operate a business you own, if it’s in your best interests.
- Make limited gifts or loans – but only if affordable and consistent with your past practices.
- Maintain existing beneficiary designations – such as leaving an RRIF or insurance policy unchanged.
Attorneys must always act honestly, in good faith, and in your best interests. They are also required to keep detailed accounts of every transaction.
❌ What Your Attorney Cannot Do
There are clear red lines attorneys cannot cross:
- Make or change your Will – this is a personal act that cannot be delegated.
- Change or add beneficiary designations – on life insurance, RRSPs, RRIFs, TFSAs, pensions, RHOSPs (Registered Home Ownership Savings Plans), RESPs (Registered Education Savings Plans), and Deferred Profit Sharing Plans (DPSPs). Courts treat these designations as “will-like” and therefore off-limits.
- Transfer your assets to themselves – unless you’ve expressly authorized it.
- Give away your property recklessly – gifts must be modest and consistent with your history.
- Act after your death – a Power of Attorney ends the moment you pass away.
⚖️ The Grey Areas
Some situations fall in between and require careful judgment:
- Tax or estate planning changes – these may indirectly affect who benefits from your estate and are usually prohibited.
- Joint bank accounts – adding an attorney’s name to your accounts may be seen as self-serving unless clearly authorized.
- Charitable donations – can be continued, but only if you gave to charity before and can still afford to do so.
Recommendations
A Power of Attorney for Property gives your attorney extensive authority, but they cannot alter your estate plan. Wills and beneficiary designations remain strictly personal decisions.
That’s why it is so important to:
- Choose an attorney you trust absolutely.
- Give clear instructions about your wishes.
- Review your estate plan regularly while you are still capable. Afterwards, it’s simply too late!
Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com