Power of Attorney Basics

1. Power of Attorney
Basics
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Who?
Grantor: A grantor is a person who signs a Power of Attorney document to
authorize another person to act as his/her attorney(s) for property and/or
personal care.
Attorney(s): An attorney is a person who is appointed to make decisions on
the grantor's behalf under a Power of Attorney document. The Power of
Attorney may specify any restrictions to an attorney's authority and/or upon
what condition (if any) the attorney will be authorized to act.
If the authority of an attorney is not limited by the terms of the Power of
Attorney, an attorney can do anything that the incapable person could have
done while capable, except for executing a new will. As such, it is important
that a grantor appoints attorneys who can be trusted to act in his/her best
interests.

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What?
A Power of Attorney is a document that authorizes another person (or
multiple people) to act on our behalves when we may be unable to do so for
some reason.
A Power of Attorney for Property appoints an attorney (or multiple
attorneys) for property, who is/are authorized to manage property and
finances on the grantor's behalf. A Continuing Power of Attorney for
Property is different from a standard Power of Attorney for Property in that it
remains effective while a person is incapable.
A Power of Attorney for Personal Care appoints an attorney (or multiple
attorneys) for personal care, who is/are authorized to make decisions
affecting personal care on the grantor's behalf, including healthcare
treatment decisions and decisions involving living arrangements.

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When?
The terms of a Power of Attorney document may limit the period during
which the attorney(s) is/are authorized to act on the grantor's behalf.
Some Power of Attorney documents specify that they come into effect
immediately or that they will come into effect when a specified condition is
met. If the document is silent on this issue, however, it typically takes effect
when the grantor becomes incapable.
Incapacity: A person is considered incapable of making personal care
decisions if he/she is unable to understand any information relevant to
making a decision regarding his/her personal care or to appreciate the
reasonably foreseeable consequences of such a decision.
A person is considered incapable of managing property if he/she is unable to
understand the information relevant to making a decision in the
management of his/her property or to appreciate the reasonably foreseeable
consequences of such a decision.

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Where?
A Power of Attorney prepared in accordance with Ontario laws may not be
recognized in other countries.
If a person has property in multiple jurisdictions, it should be investigated
whether a Power of Attorney made in accordance with Ontario laws will also
be effective in the foreign jurisdiction(s) where property is located.

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Why?
A grantor may choose to obtain Powers of Attorney to ensure that decisions
can be made on the grantor's behalf by someone he/she trusts, to act if or
when the grantor becomes incapable of making those decisions him/herself.
In some circumstances a Power of Attorney for Property may be prepared
for practical reasons, such as to enable a trusted family member or friend to
pay bills for the grantor while he/she is on vacation and unable to do so
him/herself.

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Thank you for reading!