What is a power of attorney in Ontario? Different Types of POA

 

What is a Power of Attorney?

A power of attorney (POA) is the legal authorization for an individual to act for someone else. Depending on the terms of the POA, the agent or attorney-in-fact has the broad or limited legal power to make crucial decisions. These decisions can be about the principal’s finances, property, investments, or medical care.

The principal or grantor can issue this authorization to their agent during a temporary or permanent illness or disability. They can also consider a POA when they cannot sign relevant legal documents. They will have to choose someone they trust who can handle financial and other affairs. Principals may authorize more than one agent in a POA.

Different Types of POA in Ontario

The types of POA depend on how much control the agent has, when it takes effect, and how long it lasts. Knowing the different types of POA can help you and your loved ones prepare a POA that best suits your needs.

HEALTHCARE POA

The principal can draft a health care POA (HCPOA) if they want someone to have the power to make decisions about their health. An HCPOA, also known as a health care proxy, gives the agent decision-making powers in the event of an unfortunate medical condition.

FINANCIAL POA

A financial power of attorney in Ontario allows an agent to handle the business and financial affairs of the grantor. The POA activities when the grantor cannot understand or make financial decisions.

The agent’s responsibilities can include the following:

• Signing checks
• Mailing and depositing Social Security checks
• Filing tax returns
• Managing investment accounts 
• Making deposits and withdrawals
• Making or updating beneficiary designations

GENERAL POA

A general POA authorizes the agent to make decisions on behalf of the grantor on any matter. They may manage assets, handle bank accounts, and file taxes for the principal. 

LIMITED POA

A limited POA grants the agent the power to act on behalf of the principal in specific circumstances. For example, the document only authorizes the agent to manage the principal’s retirement accounts. 

DURABLE POA

Those concerned about becoming incapacitated in the future can set up a durable POA. Under this agreement, the agent’s authority continues indefinitely even after the grantor cannot make their own decisions. 

However, you only relinquish control over your assets and finances after incapacitation. The agent has legal access as soon as the agreement takes effect, but you can revoke their authority at any time. In the meantime, you will retain your control over your accounts.

NON-DURABLE POA

On the other hand, a non-durable POA is a temporary agreement and not appropriate for cases of incapacitation. Instead, it authorizes an agent to act on behalf of a principal who could not be present in a particular place at a specific time.

A non-durable POA ends if the grantor is incapacitated because its purpose is only to accomplish specific objectives.

IMMEDIATE POA

An immediate POA goes into effect as soon as all parties sign the documents. However, most people only expect to use their POA once legally incompetent.

Remember that no POA is legally binding unless you set it up per your province’s laws. You should also renew your agreement according to the relevant guidelines.

To ensure you are following regulations, you will need the help of expert estate lawyers who can help. Look for reputable law firms that can help you set up a POA. 

You can search for the power of attorney lawyers near me on search engines. However, deepening your search on each prospect is good for finding more substantial information.

Learn more about Power of Attorney in Ontario at Nussbaum Family Law!