Roadmap to the General Power of Attorney in Ontario

Key Takeaways

• A General Power of Attorney (POA) lets you authorize someone to manage your finances and property while you’re mentally capable. It’s typically used for temporary needs like travel or illness.
• A General POA becomes invalid if you become mentally incapacitated, while a Continuing POA, remains in tact in the event of incapacity.
• Your Attorney can take a broad range of financial actions, including selling your property, unless you include limitations.
• You should choose an Attorney carefully and be free from pressure or undue influence. You can appoint a trusted person, multiple people, or even a professional.
• In Ontario, you can draft and witness your General POA completely online. We offer a free General POA template, and Virtual Witnessing Services.
• Having your POA notarized is recommended, as many institutions require a notarized copy. Notarization must be done in person with a notary near you.

Whether you’re travelling or taking an extended leave, there may come a time when you need someone to temporarily step in to manage your finances. Life can be unpredictable, but a General Power of Attorney enables you to plan ahead financially, without giving up control.

You can appoint someone to manage your finances and property until you can again, and provide instructions to protect your interests. Here, we explore how a General Power of Attorney works in Ontario, how to draft one, and when it might come in handy. 

See our fillable General POA sample to step toward securing financial peace of mind today.

What is a General Power of Attorney in Ontario?

A General Power of Attorney is a legal document that authorizes one or more people to manage your money and your property. In Canada, the individual(s) you appoint are called “Attorneys” — but the person doesn’t need to be a lawyer. The granting party giving Power of Attorney is known as the “grantor”.

This document only allows your Attorney to manage your finances and property while you’re mentally capable of managing your own affairs. If you become mentally incapacitated — a General Power of Attorney becomes invalid.

A General Power of Attorney can also be known as a: 

• Non-Continuing Power of Attorney
• Limited Power of Attorney

How Does a General Power of Attorney Work?

A General POA affirms that an Attorney has the legal right to carry out financial actions and make decisions on the grantor’s behalf. It also establishes the scope and validity of the authorization, serving as a formal record of the arrangement. 

A General Power of Attorney (POA) can be “specific” or “limited”. A specific POA authorizes your Attorney to perform a specific task, while a limited POA is only valid for a certain time. The Power of Attorney can come into effect once it’s signed, or on a date of your choosing.

The Purpose of a General Power of Attorney

A General Power of Attorney ensures that your financial affairs are taken care of by an individual(s) you can rely on. It’s used for temporary circumstances, while you are still mentally capable. A General POA can be valid for a period of two weeks, months, or years.

For instance, you might give General POA to someone to manage your financial transactions while you’re abroad or on sick leave. Once you’re able to, you’d resume managing your finances yourself again. 

Without a General Power of Attorney, a person you trust cannot legally handle your finances if you’re unable to do so. Your family may need to hire a lawyer and go through a tedious court process to be appointed as guardians.

If you have no Attorney, the government may appoint the Office of the Public Guardian and Trustee to make financial decisions for you.

What Powers Does My Attorney Have?

Your Attorney can perform a wide range of financial tasks and make decisions. Unless you limit your Attorney’s authority, they can do nearly anything you can with your finances and property. They have enormous power, so consider whether limiting their authority is right for you. Below are some actions an Attorney is authorized to take with respect to your finances:

• Sign cheques
• Do your banking
• Buy or sell your property
• Make purchases
• Manage your investments
• Pay bills

That said, your Attorney doesn’t own your money or property, and cannot perform certain actions legally. While they have the authority to manage your assets, your Attorney cannot: 

• Create a Will for you or change your existing Will;
• Change your General POA; 
• Change a beneficiary on your life insurance; or
• Give General POA to another person.

Limiting Your Attorney’s Authority

Limiting your Attorney’s authority can help protect you and your finances, see some examples below: 

• Limiting their permissions concerning banking transactions;
• Requiring your Attorney to consult with specific people, like family members or experts, before making certain decisions;
• Outlining the kinds of investments your Attorney can or cannot make; and
• Requesting that your Attorney prioritize certain people by making loans or gifts on your behalf.

Choosing an Attorney to Manage Your Finances

Appointing someone as your General Power of Attorney is a major decision that deserves thoughtful consideration. You’re granting this person (or people) significant power over your finances and property. Therefore, it’s important to only give Power of Attorney to someone you can trust completely. 

You can choose to appoint just one Attorney or name several. Your Attorney can be a family member, spouse, or lifelong friend. You can also appoint a lawyer or trust company instead; some prefer an impartial party because it can eliminate conflict.

It’s important to ask your Attorney if they’re willing to accept this monumental responsibility in advance. We suggest speaking with your Attorney about your specific wishes to confirm whether they can carry them out.

Remember: you’re not obligated to appoint an Attorney for your finances, it is entirely your choice to do so. You must be free from undue influence from anyone when choosing an Attorney, and make your decision using free will. Undue influence can occur if someone uses fear or intimidation to coerce you into granting them POA. If anyone is pressuring you into choosing them as your Attorney, consider not appointing them and speaking with someone you trust. 

How to Draft a General Power of Attorney 

In Ontario, drafting a General Power of Attorney is simple with our free, fillable General POA template. Here are the essential details your General POA must contain:

Requirements for a General POA

To be valid, your General Power of Attorney must meet the following criteria:

• Have physical, hand-written signatures;
• Be called a General Power of Attorney or state that it does not allow your Attorney to continue acting for you if you become mentally incapable;
• Name one or multiple people to act as your Attorneys for finances;
• Be signed and dated by you; and
• Be signed by two witnesses.

Details to Include in Your General POA

Ensure you include the following information in your General Power of Attorney:

• Granting party’s information: Legal name, address, and contact details.
• Authorized party’s information: Legal name, address, and contact details.
• Substitute Attorney’s information: Legal name, address and contact details.
• Date of effectiveness: Note the date you’d like the Attorney to step in (this doesn’t prevent you from carrying out matters if you’re capable). 
• Authorization Scope: A description of the rights, permissions, or powers granted to the Attorney. 
• Signatures: The granting party, witnesses, and Attorney must sign and date the POA. 
• Duration and limitations: If applicable, a time frame during which the authorization is valid and any restrictions on the authorized party’s permissions. 
• Compensation: Attorneys are paid at a rate set out by the law unless you indicate otherwise. In Ontario, the rate is 3% of funds paid and received, and 60% of 1% of the average annual value of an asset.
• Witnessing: Have your General POA witnessed online in under 7 minutes, saving yourself and your witnesses the commute.

Decision-Making for Multiple Attorneys

If you have multiple Attorneys, they must make decisions together by default. If you want to authorize them to act independently, state in your POA that your Attorneys can act “jointly and severally”.

This phrase enables your attorneys to make decisions without all of them needing to sign off. This can be helpful when urgent decisions must be made quickly, if one is away or sick, for instance.

Continuing POA vs General POA for Property

A Continuing Power of Attorney for Property comes into effect immediately after signing, or you can choose a specific date. It remains valid if you become mentally incapacitated (mentally incapable). 

You are considered incapacitated if you are not mentally capable of decision-making. Essentially, being incapacitated means you cannot comprehend information relevant to making a decision or appreciate the foreseeable consequences of a decision. 

A General Power of Attorney, also known as a Non-continuing POA, works differently. It enables your Attorney to manage your finances when you’re not incapacitated, but still cannot manage them. For example, you may want to appoint an Attorney temporarily while you are on vacation or sick. If you become incapacitated, a General POA is deemed invalid.

Who Can Draft a General Power of Attorney?

To create a General Power of Attorney in Ontario, you must:

• be at least 18 years old; 
• sign the document before two witnesses who must also sign it; and
• be mentally capable of giving Power of Attorney at the time of signing. 

Being mentally capable of giving General Power of Attorney means that you: 

• Understand the scope of authority your Attorney will have;
• Know what property you own and the approximate property value;
• Recognize that there is a possibility that your Attorney could misuse the authority;
• Understand that your Attorney must account for all the decisions they make about your property;
• Understand that if you’re capable, you may cancel your power of Attorney at any time.
• Know that unless your Attorney manages your property prudently, its value may decrease; and
• Recognize your obligations to the people who depend on you financially.

Do You Need a Lawyer to Create a General POA?

You can use NotaryPro’s free, lawyer-vetted General POA template or have a lawyer draft one for you. You should consider seeking a lawyer’s advice for complex personal affairs or business matters. Examples of complicated circumstances include: 

• Having existing General POA arrangements for financial accounts.
• Managing family conflicts or property in different countries or provinces.
• Running or owning a business.

The Ontario Land Registration System doesn’t accept Powers of Attorney containing personal details. This means you shouldn’t include confidential information found in the following:

• bank accounts;
• government ID;
• birth certificate; or
• passport.

If you have questions about this rule, it’s best to seek professional legal advice.

Virtually Witness Your POA

Your General Power of Attorney requires two witness signatures. You can have your General POA witnessed online in minutes, from the comfort of your home or office. Try our Virtual Witnessing Service today, and save yourself and your witnesses the commute to a notary’s office. Complete the process in less time than a coffee break, and enjoy peace of mind.

Notarizing Your Power of Attorney

Although it’s not always mandatory, the Government of Ontario recommends having your General Power of Attorney notarized. A notarized POA can help move processes along faster, giving institutions confidence in its authenticity. 

Further, if an institution is asked to recognize an Attorney’s authority, it may require a notarized General POA. Notarization provides additional assurance of an Attorney’s authority and reduces the risk of fraud.

You can have your General Power of Attorney notarized at any of NotarPro’s in-person locations. Find a notary near you here. 

Draft a General Power of Attorney 

Protect your financial future by drafting a General Power of Attorney today. Our free, fillable General Power of Attorney template is intuitive and easy to use. Simply fill in the required fields and have a perfectly formatted General POA waiting in your inbox. 

Whether you need someone to manage your property or handle your banking, your first step starts here. Use our free General Power of Attorney template to draft one today!