In Canada, including the province of Ontario, a power of attorney (POA) is a legal document that grants authority to one person (the “attorney” or “agent”) to act on behalf of another person (the “grantor” or “principal”) in managing their affairs. A power of attorney can be used for various purposes and can be general or specific in nature. Here are some key rules and regulations related to powers of attorney in Ontario:

Types of Power of Attorney:

General Power of Attorney:

This grants the attorney broad authority to act on behalf of the grantor for financial and legal matters while the grantor is mentally capable.

Continuing Power of Attorney for Property:

This allows the attorney to manage the grantor’s financial affairs even if the grantor becomes mentally incapable.

Power of Attorney for Personal Care:

This empowers the attorney to make healthcare and personal care decisions on behalf of the grantor if they become incapable of making such decisions.

Capacity and Consent:

To create a power of attorney, the grantor must be mentally capable of understanding the nature and consequences of the document. The grantor must give their consent willingly and without undue influence.

Witnesses and Notarization:

In Ontario, a power of attorney must be signed in the presence of two witnesses who are not the attorney or related to the attorney. For certain transactions, such as real estate transactions, the power of attorney may require notarization.

Revocation and Termination:

The grantor can revoke or terminate a power of attorney at any time as long as they are mentally capable. It can be done in writing, and copies of the revocation should be provided to relevant parties.

Duties and Responsibilities of the Attorney:

The attorney has a fiduciary duty to act in the best interests of the grantor, exercise their powers diligently, and keep accurate records of their actions.

Compensation:

In most cases, attorneys are not entitled to compensation unless specified in the power of attorney document or approved by a court.

Substitute Decision-Makers:

If a person becomes mentally incapable without having a power of attorney in place, Ontario has a hierarchy of substitute decision-makers, which may include family members or a government-appointed guardian.

Fraud and Abuse Prevention:

The Ontario government has regulations in place to protect against fraud and abuse related to powers of attorney, including the Power of Attorney for Personal Care Regulations and the Power of Attorney Act.