A Canadian Continuing (Enduring) Power of Attorney for Property is one of the most important estate planning documents available under Canadian law. Unlike a general power of attorney that terminates automatically when the Donor loses mental capacity, a continuing power of attorney survives the Donor's incapacity and allows the appointed Attorney to continue managing the Donor's property and financial affairs even after the Donor can no longer make decisions independently.

In Ontario, the legal framework is found in the Substitute Decisions Act, 1992 (S.O. 1992, c. 30). Section 7(1) provides that a power of attorney for property is a continuing power of attorney if it contains a statement indicating that the authority may be exercised during the grantor's incapacity to manage property. The SDA sets out the duties of the Attorney (ss. 32-38), including the duty to act diligently, keep accounts, maintain the Donor's property separate, and act in the Donor's best interest when the Donor is incapable. Section 37(4) requires express authorization for the Attorney to make gifts or charitable donations.

In British Columbia, the Power of Attorney Act (R.S.B.C. 1996, c. 370) governs enduring powers of attorney. Section 8 provides that an enduring power of attorney must expressly state that the authority continues despite the adult's incapability. The attorney must sign the enduring POA in the presence of two witnesses before exercising authority. In Alberta, the Powers of Attorney Act (R.S.A. 2000, c. P-20, s. 2) provides that an enduring power of attorney is not terminated by any mental incapacity or infirmity of the donor occurring after execution. In Quebec, the equivalent instrument is a mandat de protection under the Civil Code of Quebec (arts. 2166-2174), which must be homologated by the court before the mandataire can act on behalf of an incapable person.

A continuing power of attorney is an essential component of every Canadian adult's estate plan. It is needed to ensure that someone you trust can manage your financial affairs if you become mentally incapable due to dementia, Alzheimer's disease, traumatic brain injury, stroke, or any other condition that impairs your ability to make financial decisions. Without a continuing POA, if you become incapable, your family may need to apply to the court for guardianship (called a guardianship order in Ontario under SDA Part III), which is time-consuming, expensive, and stressful.

Senior Canadians are particularly encouraged to execute a continuing POA while they are still mentally capable. The prevalence of cognitive decline increases with age, and having a POA in place before any symptoms arise ensures a smooth transition of financial management. Individuals diagnosed with early-stage cognitive conditions should execute a continuing POA as soon as possible, as the law requires the Donor to be mentally capable at the time of execution.

A continuing POA is also important for younger adults who face risks of sudden incapacity, such as those working in high-risk occupations, military personnel, or individuals with medical conditions that could lead to sudden incapacity. Business owners should have a continuing POA to ensure their business operations can continue seamlessly. Individuals who own real property, maintain investment portfolios, have registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), or receive government benefits like the Canada Pension Plan (CPP) or Old Age Security (OAS) all need a continuing POA to ensure these assets and benefits can be managed if they become incapable.

A valid Canadian Continuing Power of Attorney for Property must include specific elements required by provincial legislation. First, the document must contain an express declaration that it is a continuing power of attorney and that the authority granted survives the Donor's mental incapacity. This statement is mandated by Ontario's SDA s. 7(1), BC's Power of Attorney Act s. 8, and Alberta's Powers of Attorney Act s. 2. Without this express provision, the document is merely a general POA that terminates upon incapacity.

The document must identify the Donor and the Attorney with their full legal names, addresses, dates of birth, and contact information. The Donor must specify when the Attorney's authority takes effect: immediately upon execution or only upon a determination of mental incapacity (a springing POA). If the POA is springing, the method for determining incapacity must be specified, such as a written opinion from a qualified capacity assessor or licensed physician.

The scope of powers must be clearly defined. While a continuing POA can grant the Attorney authority to do anything the Donor could do if capable (except make a will), best practice is to enumerate specific powers such as real property transactions, banking, investments, tax filings with CRA, and management of government benefits. Express authorization for gifting is required under Ontario's SDA s. 37(4). The document must address attorney compensation, fiduciary duties, accounting obligations, and the process for revocation. It must be signed in the presence of two witnesses who cannot be the Attorney, the Attorney's spouse or partner, or the Donor's spouse or partner (Ontario SDA s. 10). A substitute attorney should be named for continuity.