Why it matters: A will only takes effect after death. A Power of Attorney protects you while you're alive — if you're in an accident, have a stroke, or develop dementia. Without one, your family must go to court to manage your affairs.
Two Types of POA
POA for Property (Financial)
Gives someone authority to manage your finances:
- • Pay bills and manage bank accounts
- • File taxes
- • Manage investments
- • Sell property
- • Handle insurance claims
- • Run your business
POA for Personal Care (Health)
Gives someone authority over health decisions:
- • Medical treatment decisions
- • Where you live (home, care facility)
- • Nutrition and hygiene
- • Safety decisions
- • End-of-life care wishes
- • Organ donation
Note: Terminology varies by province. In BC it's "Representation Agreement," in Quebec "Mandate of Protection," in Alberta "Personal Directive."
Continuing vs Non-Continuing POA
Continuing (Enduring) POA ✅
Remains valid even if you become mentally incapable. This is the one you want. Without "continuing" language, the POA becomes invalid when you need it most.
Non-Continuing (General) POA
Only valid while you're mentally capable. Useful for temporary situations (e.g., someone managing finances while you're travelling).
Choosing Your Attorney (Agent)
Your "attorney" doesn't need to be a lawyer — it's the person you appoint to act on your behalf.
Choose someone who is:
- ✓ Trustworthy above all else
- ✓ Good with finances (for property POA)
- ✓ Understands your health care wishes (for personal care POA)
- ✓ Willing to make difficult decisions
- ✓ Available and accessible
- ✓ Not in a conflict of interest
Tip: You can appoint different people for property and personal care. You can also appoint joint attorneys or alternates.
What Happens Without a POA?
If you become incapable without a POA:
- ❌ Family must apply to court for guardianship — costs $5,000-$15,000+
- ❌ Process takes 3-6 months or longer
- ❌ Court may appoint someone you wouldn't have chosen
- ❌ Your bank accounts may be frozen
- ❌ Bills go unpaid, investments unmanaged
- ❌ Family members may disagree, causing conflict
How to Set Up a POA
- Decide who to appoint — Have a conversation with them first
- Choose your method:
- • Online services (Willful, Epilogue): $40-$200
- • Lawyer: $200-$500 per POA document
- • Some provinces offer free kits
- Sign with proper witnesses — Requirements vary by province (usually 2 witnesses)
- Give copies to your attorney — They need the original or certified copies
- Inform your bank and financial institutions — Some require their own POA forms
Safeguards Against Abuse
- 🔒 Limit powers — You can restrict what your attorney can do
- 🔒 Require accounting — Attorney must keep records of all transactions
- 🔒 Appoint a monitor — Someone to oversee the attorney's actions
- 🔒 "Springing" POA — Only activates upon incapacity (confirmed by doctor)
- 🔒 Revoke anytime — You can cancel a POA while you're mentally capable
POA vs Will — Quick Comparison
Power of Attorney
- • Effective while you're alive
- • Covers incapacity
- • Ends at death
- • You need BOTH types
Will
- • Effective only after death
- • Covers asset distribution
- • Names guardian for children
- • Goes through probate