If you’re asking, ‘do I need two powers of attorney?’ – the answer depends on your financial and personal care planning needs.
Most Ontario estate plans use two powers of attorney because financial decisions and personal care decisions are covered by separate legal documents.
Many people preparing an estate plan ask, do I need two powers of attorney? In Ontario, there are separate documents for property and personal care. Each gives a trusted person authority over a different part of your life.
Having both documents can help ensure that someone you choose can manage your finances and make personal care decisions if you become incapable.
What Each Power of Attorney Controls
A Continuing Power of Attorney for Property covers financial matters. Depending on its terms, your attorney may be able to manage bank accounts, pay bills, deal with investments, file taxes, or manage real estate and business interests.
A Power of Attorney for Personal Care covers decisions involving:
- Health care
- Housing
- Nutrition
- Clothing
- Hygiene
- Safety
The Ontario government treats these as two separate types of powers of attorney because they involve different responsibilities.
When Each Attorney Can Act
A Continuing Power of Attorney for Property may take effect as soon as it is signed unless the document sets a later time or condition. This should be discussed carefully before the document is completed.
An attorney for personal care generally makes a particular decision only when you are incapable of making that decision yourself.
When asking, ‘do I need two powers of attorney?’, remember that incapacity is not always permanent or complete. A person may be capable of making some decisions while needing help with others.
Can the Same Person Hold Both Roles?
Yes. You may appoint the same person under both documents, or choose different people based on their skills.
Someone who is organized and comfortable with money may be a good attorney for property. A person who understands your wishes and can make difficult health or care decisions may be better suited to personal care.
You should also consider naming alternate attorneys in case your first choice dies, becomes incapable, or is unavailable.
Special Considerations for Business Owners
Business owners should make sure their property power of attorney works with their corporate documents, banking arrangements, and signing authorities.
An attorney may need to deal with payroll, leases, taxes, contracts, or shareholder matters during an unexpected illness. However, a personal power of attorney may not override restrictions in a corporation’s governing documents.
Plan for Both Sides of Incapacity
For most people, the answer to ‘do I need two powers of attorney’ is yes. The documents serve different purposes and together provide more complete protection. Having powers of attorney may also reduce the need for a guardian to be appointed later.
To review your options, speak with Samantha Machado, explore our Estate Planning services, or read our Practical Guide to Estate Planning in Ontario.
Quick FAQ
Yes. You may appoint more than one attorney and state whether they must act together or may act separately. The document should provide clear instructions.
You may generally revoke or replace a power of attorney while you have the legal capacity to do so. The new documents should be completed properly, and relevant people or institutions should be told about the change.
You may generally revoke or replace a power of attorney while you have the legal capacity to do so. The new documents should be completed properly, and relevant people or institutions should be told about the change.
