A Canadian Power of Attorney for Property is a legal document by which one person (the Grantor or Donor) appoints another person (the Attorney) to manage their financial and property affairs. In Ontario, this document is governed by the Substitute Decisions Act, 1992 (S.O. 1992, c. 30), which uses the term “Continuing Power of Attorney for Property” when the authority survives the Grantor’s mental incapacity. In British Columbia, the equivalent document is called an “Enduring Power of Attorney” under the Power of Attorney Act (R.S.B.C. 1996, c. 370), and in Alberta it is governed by the Powers of Attorney Act (R.S.A. 2000, c. P-20).

The key distinction in Canadian law is between a “continuing” or “enduring” power of attorney and a standard one. A continuing or enduring power of attorney remains in effect even after the Grantor loses mental capacity — this is its primary purpose and the reason most Canadians execute one as part of estate planning. A standard power of attorney is automatically revoked by operation of law when the Grantor becomes mentally incapable. Without a valid continuing power of attorney, family members must apply to court for a guardianship order under the applicable provincial legislation, which is expensive, time-consuming, and intrusive.

To be capable of granting a continuing power of attorney for property in Ontario, the Grantor must understand the nature and approximate value of their property, the obligations they owe to their dependants, that the Attorney will be able to do anything the Grantor could do with respect to property (except make a will), that the Attorney might misuse their authority, and that the value of the Grantor’s assets may decline unless managed prudently (SDA, s. 8). In BC, similar capacity requirements apply under s. 12 of the Power of Attorney Act. The Attorney assumes a fiduciary duty to act honestly, in good faith, and in the Grantor’s best interests, and must keep the Grantor’s property separate from their own.

A Canadian Power of Attorney for Property is needed whenever an individual wants to ensure that their financial affairs will be managed by a trusted person if they become unable to manage them personally. This is a cornerstone of responsible estate planning in Canada — without one, the Grantor’s family may face months of court proceedings and substantial legal fees to obtain a guardianship order.

This document is essential for older Canadians planning for the possibility of cognitive decline from conditions such as dementia or Alzheimer’s disease. It is equally important for younger adults who may be incapacitated by accident or illness. A continuing power of attorney should be executed while the Grantor is capable — once incapacity occurs, it is too late to grant one.

Business owners need a power of attorney for property to ensure their business operations continue without interruption if they become incapable. The Attorney can manage business bank accounts, sign contracts, pay employees, file GST/HST returns, and deal with the Canada Revenue Agency on the Grantor’s behalf.

Canadians who own real property should consider a power of attorney that specifically addresses real estate transactions. If the Grantor becomes incapable and a property must be sold to fund care costs, the Attorney must have authority to execute the necessary documents with the applicable land registry office.

The power of attorney is also used when a capable person needs someone to handle their affairs temporarily — for example, during extended travel, hospitalization, or military deployment. In such cases, a standard (non-continuing) power of attorney may be sufficient, with authority limited in scope and duration.

A valid Canadian Power of Attorney for Property must identify the Grantor with their full legal name, date of birth, and address, and must clearly name the Attorney being appointed. The document should state whether it is continuing or enduring (surviving the Grantor’s incapacity) or standard (revoked upon incapacity). If it is continuing, the document must contain express language stating that the authority is intended to continue despite the Grantor’s subsequent mental incapacity — without this language, the document will be treated as a standard power of attorney that terminates upon incapacity.

The scope of powers must be clearly defined — either general (encompassing all property and financial matters) or limited to specific categories such as banking, real estate, investments, or tax filing. Common restrictions include prohibitions on selling the principal residence, limitations on gift-giving, and requirements to consult with family members before making decisions exceeding a specified dollar amount.

Witness requirements vary by province. In Ontario, the SDA requires two witnesses who must be present when the Grantor signs. Neither witness may be the Attorney, the Attorney’s spouse or partner, the Grantor’s spouse or partner, a minor, or a person whose property is under guardianship (SDA, s. 10). In British Columbia, two witnesses are required, but a single witness suffices if that witness is a lawyer or a notary public. In Alberta, at least one witness is required, and that witness must not be the Attorney, the Attorney’s spouse or adult interdependent partner, or the Grantor’s spouse or adult interdependent partner.

The document should address compensation — whether the Attorney will serve without compensation or will be paid according to the statutory fee scale (in Ontario, up to 3% of revenue receipts, 3% of capital disbursements, and 3/5 of 1% on the average annual value of assets under SDA s. 40). Record-keeping and accounting obligations should be specified, including the frequency of reporting and the persons entitled to receive an accounting. The governing law clause must reference the specific Canadian province.