Continuing Power of Attorney for Property: Your Guide

Key Takeaways

• A Continuing Power of Attorney for Property (CPOA) allows someone you trust to manage your finances if you cannot.
• A valid CPOA must include a clear scope of authority, witness signatures, and details about the grantor and attorney.
• A CPOA remains effective even if you become mentally incapacitated.
• Choose a trustworthy person and ensure they understand and can accept the responsibility. You can also choose an impartial party, like a lawyer.
• You can add restrictions to limit your attorney’s authority.
• notarizing your CPOA provides added credibility and helps things move faster with institutions.

Planning for your future is critical, especially when it comes to managing your finances. A Continuing Power of Attorney for Property ensures your financial affairs are handled according to your wishes if you’re unable to manage them. 

Here, we’ll dive into how a Continuing Power of Attorney for Property (CPOA) works, how to draft one, and why you should. See our, customizable CPOA template to take the first step toward securing financial peace of mind today!

What is a Continuing Power of Attorney for Property in Ontario?

In Ontario, a CPOA is a legal document that gives someone else the right to make decisions on your behalf.  Sometimes, CPOAs are called “durable” POAs, which means the same as “continuing”. 

A Continuing Power of Attorney for Property gives one or more people the authority to manage your money and property. In Canadian provinces, the person you appoint is called an “attorney” — but the person doesn’t need to be a lawyer. The granting party is called a “grantor”. 

Essentially, a CPOA affirms that the attorney has the legal right to carry out actions or make decisions on behalf of the grantor. It establishes the scope and validity of authorization, creating a formal record of the arrangement. 

The Purpose of a Continuing Power of Attorney for Property

Without a Power of Attorney for Property, other people cannot legally manage your finances if you’re unable to do handle them. Family members would need to hire a lawyer or go through a lengthy court process to be appointed as guardians.

If no one steps in, the government may appoint the Office of the Public Guardian and Trustee to make decisions for you. A CPOA ensures that your financial affairs are carried out according to your wishes.

Choosing an Attorney for Your Finances

When choosing an Attorney, it’s important to select a person you trust completely, like a family member, your spouse, or lifelong friend. It’s your choice whether to name one or more than one attorney. You can also appoint a lawyer or trust company instead — some people prefer an impartial party, as this can eliminate potential conflict.

Giving Power of Attorney to someone is a highly serious matter. You’re granting the person you appoint significant power over your property. Remember, you’re not required to appoint an attorney for your property, it is your choice to do so. If anyone is pressuring you into choosing them to be your attorney, consider not appointing them and speaking with family or friends. 

No matter who you choose, ask them first to confirm that they’re willing to accept this significant responsibility. It’s also a good idea to ensure your attorney fully understands your wishes and can carry them out. If you feel pressured to choose someone, consult a lawyer to explore your options.

Continuing vs Non-Continuing POA for Property

A Continuing Power of Attorney for Property comes into effect anytime you want; it persists if you become mentally incapacitated (mentally incapable). Essentially, if you are not mentally capable of decision-making, you are considered incapacitated. Being incapacitated means you cannot understand information relevant to making a decision or appreciate the foreseeable consequences of a decision. 

A Non-Continuing Power of Attorney for Property (also known as a General POA) works differently. It allows your attorney to manage your finances when you’re not incapacitated, but still unable to do so. For instance, you may want to appoint an attorney temporarily while you are on vacation or sick. If you become incapacitated, a non-continuing POA ends and is no longer valid.

How to Draft a Continuing Power of Attorney for Property 

In Ontario, drafting a Continuing Power of Attorney for Property is simple with our free, fillable CPOA template. See the essential elements and information your CPOA must contain below.

Elements Your CPOA Must Contain

To be valid, your Continuing Power of Attorney for Property must meet the following criteria:

• Have wet ink signatures at the end of the document;
• Be called a Continuing Power of Attorney for Property or state that it allows your attorney to continue acting for you if you become mentally incapable;
• Name one or multiple people to act as your attorneys for property;
• Be signed and dated by you; and
• Be signed by two witnesses who watch you sign the document.

Information to Include in Your CPOA

Ensure you include the below information in your Continuing Power of Attorney for Property:

• Granting party’s information: Full name, address, and contact details.
• Authorized party’s information: Full name, address, and contact details.
• Substitute attorney’s information: Full name, address and contact details of the substitute attorney in case the original attorney cannot fulfill their duties.
• Scope of authorization: A precise description of the financial rights, permissions, or powers granted to the attorney. 
• Date of effectiveness: Note the date you’d like the attorney to step in. This doesn’t prevent you from carrying out matters on your own if you’re still capable. 
• Duration and limitations: If applicable, a specific time frame during which the authorization is valid and any restrictions on the authorized party’s actions. 
• Signatures: The granting party, attorney, and witnesses must sign and date the document. 
• Compensation: Attorneys are paid at a rate set out by the law unless you indicate otherwise. The rate is 3% of funds paid and received and 60% of 1% of the average annual value of an asset.
• Notarization: Having your CPOA notarized can make things move faster, giving banks and other institutions confidence in its authenticity.

Who Can Draft a Continuing Power of Attorney for Property?

To create a Continuing Power of Attorney for Property in Ontario, you must:

• be at least 18 years of age; 
• sign the document in the presence of 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 Continuing Power of Attorney for Property means that you: 

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

Do You Need a Lawyer to Create a CPOA?

You can use NotaryPro’s free, lawyer-vetted CPOA template or have a lawyer draft one for you. For highly complex personal or business affairs, consider seeking the advice of a lawyer. Examples of complex circumstances include: 

• Having existing CPOA arrangements for bank accounts.
• Running or owning a business.
• Managing family conflicts or property in other countries or provinces.

The Ontario Land Registration System does not accept powers of attorney containing personal details. This means you should not include confidential information found in your:

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

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

What Can an Attorney for Property Do?

Unless you limit your attorney’s authority, they can do almost anything you can do with your finances and property. If you don’t include limitations, your attorney can sign cheques, do your banking, buy or sell your property, make purchases, and more. This gives them enormous power, so choose carefully. 

That said, your attorney doesn’t become the owner of your money or property. They only have the authority to manage your assets on your behalf. Your attorney cannot: 

• create a Will for you or change your existing one;
• change a beneficiary on your life insurance; 
• change your CPOA document; or
• give CPOA to another person.

Undue Influence

You must be free from any undue influence when choosing an attorney (from the attorney or any other party). This means you must decide to grant a power of attorney on your own, using free will.  For example, undue influence can occur if someone uses fear or intimidation to coerce you into granting them power of attorney. 

Can You Restrict the Authority Your Attorney Receives?

Generally, a Continuing Power of Attorney for Property gives your attorney authority over all your property. However, you can put restrictions in place, such as limiting your attorney’s power to specific assets, like bank accounts. Some other examples of restrictions to keep you safe include: 

• requiring your attorney to consult with specific people, like family members or financial experts, before they make certain decisions;
• outlining the types of investments your attorney can or cannot make; or
• requiring your attorney to prioritize certain people by making loans or gifts on your behalf.

Should You Notarize Your Power of Attorney in Ontario?

Getting a Power of Attorney notarized is a good idea, the Government of Ontario recommends having it notarized. A notarized CPOA can help things move faster, giving institutions confidence in its authenticity. 

Further, an institution asked to recognize an attorney’s authority may require a notarized copy of the CPOA. Notarization provides additional assurance of an attorney’s authority and reduces the risk of fraud.

Draft Your Continuing Power of Attorney for Property Today

Plan ahead and protect your financial future by drafrting a Continuing Power of Attorney for Property. Our free, lawyer-vetted Continuing Power of Attorney for Property template is easy to use and straightforward. Simply fill in the required fields and get a perfectly formatted CPOA sent to your email immediately. 

Whether you need someone to manage your property or handle your banking, your first step starts here. Draft your Continuing Power of Attorney for Property today!