What every older Canadian
shouldknow about
POWERS OF ATTORNEY
(for financial matters andproperty)
and
JOINT BANK
ACCOUNTS
FEDERAL/PROVINCIAL/TERRITORIAL MINISTERS RESPONSIBLE FOR SENIORS
LES MINISTRES FÉDÉRAL/PROVINCIAUX/TERRITORIAUX RESPONSABLES DES AÎNÉS
LES MINISTRES FÉDÉRAL/PROVINCIAUX/TERRITORIAUX RESPONSABLES DES AÎNÉS
FEDERAL/PROVINCIAL/TERRITORIAL MINISTERS RESPONSIBLE FOR SENIORS
FEDERAL/PROVINCIAL/TERRITORIAL MINISTERS RESPONSIBLE FOR SENIORS
LES MINISTRES FÉDÉRAL/PROVINCIAUX/TERRITORIAUX RESPONSABLES DES AÎNÉS
LES MINISTRES
FÉDÉRAL/PROVINCIAUX/TERRITORIAUX
RESPONSABLES DES AÎNÉS
FEDERAL/PROVINCIAL/TERRITORIAL
MINISTERS RESPONSIBLE FOR SENIORS
LES MINISTRES
FÉDÉRAL/PROVINCIAUX/TERRITORIAUX
RESPONSABLES DES AÎNÉS
FEDERAL/PROVINCIAL/TERRITORIAL
MINISTERS RESPONSIBLE FOR SENIORS
LES MINISTRES
FÉDÉRAL/PROVINCIAUX/TERRITORIAUX
RESPONSABLES DES AÎNÉS
FEDERAL/PROVINCIAL/TERRITORIAL
MINISTERS RESPONSIBLE FOR SENIORS
English/Français
Français/English
English
Français
English/Français
Français/English
Français
English
This document has been jointly prepared by the Forum
of Federal, Provincial and Territorial Ministers Responsible for
Seniors. The Forum is an intergovernmental body established
to share information, discuss new and emerging issues related
to seniors, and work collaboratively on key projects.
Québec’s participation in the development of this document
was aimed at sharing expertise, information and best practices.
However, Québec does not subscribe to, or take part in, an
integrated pan-Canadian approach in this eld and intends
to fully assume its responsibilities for seniors in Québec.
This document is available on demand in multiple formats
(large print, Braille, audio cassette, audio CD, e-text diskette,
e-text CD, or DAISY), by contacting 1 800 O-Canada
(1-800-622-6232). If you use a teletypewriter (TTY),
call 1-800-926-9105.
2013 All Rights Reserved
Paper
Cat. No.: HS4-118/2013
ISBN: 978-1-100-54410-6
PDF
Cat. No.: HS4-118/2013E-PDF
ISBN: 978-1-100-21223-4
Cat. No. : ISSD-106-09-13
This publication provides general information about
Powers of Attorney that deal with nances and property, and
general information about joint bank accounts.
When the term “Powers of Attorney” is used in this document,
it refers to Powers of Attorney for nances and property only.
This brochure does not deal with Powers of Attorney for
healthcare or personal care.
This publication is not a substitute for getting legal advice
for your own particular situation.
As laws dealing with Powers of Attorney are specic to each
province and territory, it is important to understand the laws
where you live before making any decisions.
It is also important, before opening a joint bank account,
to understand the legal consequences associated with such
accounts. Speak with your nancial institution about your wishes
so they can assist you with a nancial product that best suits
your needs.
Many Canadians are concerned about how to manage their
money, property, and nances as they age or as life changes take
place. They may worry about what will happen if they become
unable to deal with their own nances. It is a good idea to plan
ahead for a time when you may need help managing your affairs.
Two tools often used for managing nancial affairs are Powers
of Attorney and joint bank accounts.
It is important to know how a Power of Attorney or a joint bank
account works before you use them. There are risks and
advantages to both.
You should never feel pressured to sign a Power of Attorney or to
open a joint bank account. Carefully consider all of your options
before making any decisions.
1
Powers of Attorney
What is a Power of Attorney?
A Power of Attorney is a legal document that you sign to give one
person, or more than one person, the authority to manage your
money and property on your behalf. In most of Canada, the person
you appoint is called an “attorney.” That person does not need to
be a lawyer.
What types of Powers of Attorney are used in Canada?
The names and requirements for the different types of Powers of
Attorney that deal with nances and property will vary depending
on the province or territory where you live.
Among other requirements, you must be mentally capable at the
time you sign any type of Power of Attorney for it to be valid. In
general, to be mentally capable means that you are able to
understand and appreciate nancial and legal decisions and
understand the consequences of making these decisions.
However, the legal denition of mental capacity will vary based
on the laws in each province or territory.
Generally, there are two main types of Powers of Attorney
commonly used for nances and property in Canada:
A General Power of Attorney is a legal document that can give
your attorney authority over all or some of your nances and
property. It allows your attorney to manage your nances and
property on your behalf only while you are mentally capable of
managing your own affairs. It ends if you become mentally
incapable of managing your own affairs.
A general Power of Attorney can be ‘specic’ or ‘limited’, which
can give authority to your attorney for a limited task (e.g. sell a
house) or give them authority for a specic period of time. The
Power of Attorney can start as soon as you sign it, or it can start on
a specic date that you write in the document.
2
1
Powers of Attorney
What is a Power of Attorney?
A Power of Attorney is a legal document that you sign to give one
person, or more than one person, the authority to manage your
money and property on your behalf. In most of Canada, the person
you appoint is called an “attorney.” That person does not need to
be a lawyer.
What types of Powers of Attorney are used in Canada?
The names and requirements for the different types of Powers of
Attorney that deal with nances and property will vary depending
on the province or territory where you live.
Among other requirements, you must be mentally capable at the
time you sign any type of Power of Attorney for it to be valid. In
general, to be mentally capable means that you are able to
understand and appreciate nancial and legal decisions and
understand the consequences of making these decisions.
However, the legal denition of mental capacity will vary based
on the laws in each province or territory.
Generally, there are two main types of Powers of Attorney
commonly used for nances and property in Canada:
A General Power of Attorney is a legal document that can give
your attorney authority over all or some of your nances and
property. It allows your attorney to manage your nances and
property on your behalf only while you are mentally capable of
managing your own affairs. It ends if you become mentally
incapable of managing your own affairs.
A general Power of Attorney can be ‘specic’ or ‘limited’, which
can give authority to your attorney for a limited task (e.g. sell a
house) or give them authority for a specic period of time. The
Power of Attorney can start as soon as you sign it, or it can start on
a specic date that you write in the document.
1
Powers of Attorney
What is a Power of Attorney?
A Power of Attorney is a legal document that you sign to give one
person, or more than one person, the authority to manage your
money and property on your behalf. In most of Canada, the person
you appoint is called an “attorney.” That person does not need to
be a lawyer.
What types of Powers of Attorney are used in Canada?
The names and requirements for the different types of Powers of
Attorney that deal with nances and property will vary depending
on the province or territory where you live.
Among other requirements, you must be mentally capable at the
time you sign any type of Power of Attorney for it to be valid. In
general, to be mentally capable means that you are able to
understand and appreciate nancial and legal decisions and
understand the consequences of making these decisions.
However, the legal denition of mental capacity will vary based
on the laws in each province or territory.
Generally, there are two main types of Powers of Attorney
commonly used for nances and property in Canada:
A General Power of Attorney is a legal document that can give
your attorney authority over all or some of your nances and
property. It allows your attorney to manage your nances and
property on your behalf only while you are mentally capable of
managing your own affairs. It ends if you become mentally
incapable of managing your own affairs.
A general Power of Attorney can be ‘specic’ or ‘limited’, which
can give authority to your attorney for a limited task (e.g. sell a
house) or give them authority for a specic period of time. The
Power of Attorney can start as soon as you sign it, or it can start on
a specic date that you write in the document.
1
Powers of Attorney
What is a Power of Attorney?
A Power of Attorney is a legal document that you sign to give one
person, or more than one person, the authority to manage your
money and property on your behalf. In most of Canada, the person
you appoint is called an “attorney.” That person does not need to
be a lawyer.
What types of Powers of Attorney are used in Canada?
The names and requirements for the different types of Powers of
Attorney that deal with nances and property will vary depending
on the province or territory where you live.
Among other requirements, you must be mentally capable at the
time you sign any type of Power of Attorney for it to be valid. In
general, to be mentally capable means that you are able to
understand and appreciate nancial and legal decisions and
understand the consequences of making these decisions.
However, the legal denition of mental capacity will vary based
on the laws in each province or territory.
Generally, there are two main types of Powers of Attorney
commonly used for nances and property in Canada:
A General Power of Attorney is a legal document that can give
your attorney authority over all or some of your nances and
property. It allows your attorney to manage your nances and
property on your behalf only while you are mentally capable of
managing your own affairs. It ends if you become mentally
incapable of managing your own affairs.
A general Power of Attorney can be ‘specic’ or ‘limited’, which
can give authority to your attorney for a limited task (e.g. sell a
house) or give them authority for a specic period of time. The
Power of Attorney can start as soon as you sign it, or it can start on
a specic date that you write in the document.
1
Powers of Attorney
What is a Power of Attorney?
A Power of Attorney is a legal document that you sign to give one
person, or more than one person, the authority to manage your
money and property on your behalf. In most of Canada, the person
you appoint is called an “attorney.” That person does not need to
be a lawyer.
What types of Powers of Attorney are used in Canada?
The names and requirements for the different types of Powers of
Attorney that deal with nances and property will vary depending
on the province or territory where you live.
Among other requirements, you must be mentally capable at the
time you sign any type of Power of Attorney for it to be valid. In
general, to be mentally capable means that you are able to
understand and appreciate nancial and legal decisions and
understand the consequences of making these decisions.
However, the legal denition of mental capacity will vary based
on the laws in each province or territory.
Generally, there are two main types of Powers of Attorney
commonly used for nances and property in Canada:
A General Power of Attorney is a legal document that can give
your attorney authority over all or some of your nances and
property. It allows your attorney to manage your nances and
property on your behalf only while you are mentally capable of
managing your own affairs. It ends if you become mentally
incapable of managing your own affairs.
A general Power of Attorney can be ‘specic’ or ‘limited’, which
can give authority to your attorney for a limited task (e.g. sell a
house) or give them authority for a specic period of time. The
Power of Attorney can start as soon as you sign it, or it can start on
a specic date that you write in the document.
3
2
An Enduring or Continuing Power of Attorney is a legal document
that lets your attorney continue acting for you if you become
mentally incapable of managing your nances and property. It can
also give your attorney authority over all or some of your nances
and property. An Enduring or Continuing Power of Attorney can
take effect as soon as you sign it. In some cases, it is possible to
have the Power of Attorney come into effect only when you
become mentally incapable, if this was specied in the document.
What can my attorney do?
Unless you limit your attorney’s authority, they can do almost
everything with your nances and property that you could do. If
you don’t have any limitations in your Power of Attorney
document, your attorney can do your banking, sign cheques, buy
or sell real estate in your name, and buy consumer goods. Your
attorney does not become the owner of any of your money or
property. He or she only has the authority to manage it on your
behalf.
Your attorney cannot make a will for you, change your existing
will, change a beneciary on a life insurance plan, or give a new
Power of Attorney to someone else on your behalf.
Can my attorney make decisions about my healthcare
and personal care?
In most parts of Canada, it is possible to prepare documents that
give another person the authority to make health and other types
of personal and non-nancial decisions for you, if you were to
become mentally incapable of doing so for yourself. Depending
on where you live, these documents may be called Powers of
Attorney, personal or health directives, representation agreements,
or mandates.
These documents are not the same as Powers of Attorney for
nances and property. It is important to be clear about what type
of document you are signing. This publication deals with Powers of
Attorney for nancial matters and property only. This includes your
money, investments, and everything that you own, including your
home.
Can I still make decisions for myself if I grant someone
a Power of Attorney?
As long as you are mentally capable, you can continue to make
your own decisions about your nances.
Understand the laws where you live
Each province and territory has its own laws relating to Powers of
Attorney. You need to follow the law in the province or territory
where you live.
You may want to consult a lawyer when entering into a Power of
Attorney to be sure that your document is valid, and to fully
understand what your attorney will be able to do. It is important
that you learn how you or others can monitor your attorney’s
actions, and what to do if you want to change or cancel the Power
of Attorney. Be sure that you fully understand any document before
you sign it.
2
An Enduring or Continuing Power of Attorney is a legal document
that lets your attorney continue acting for you if you become
mentally incapable of managing your nances and property. It can
also give your attorney authority over all or some of your nances
and property. An Enduring or Continuing Power of Attorney can
take effect as soon as you sign it. In some cases, it is possible to
have the Power of Attorney come into effect only when you
become mentally incapable, if this was specied in the document.
What can my attorney do?
Unless you limit your attorney’s authority, they can do almost
everything with your nances and property that you could do. If
you don’t have any limitations in your Power of Attorney
document, your attorney can do your banking, sign cheques, buy
or sell real estate in your name, and buy consumer goods. Your
attorney does not become the owner of any of your money or
property. He or she only has the authority to manage it on your
behalf.
Your attorney cannot make a will for you, change your existing
will, change a beneciary on a life insurance plan, or give a new
Power of Attorney to someone else on your behalf.
Can my attorney make decisions about my healthcare
and personal care?
In most parts of Canada, it is possible to prepare documents that
give another person the authority to make health and other types
of personal and non-nancial decisions for you, if you were to
become mentally incapable of doing so for yourself. Depending
on where you live, these documents may be called Powers of
Attorney, personal or health directives, representation agreements,
or mandates.
These documents are not the same as Powers of Attorney for
nances and property. It is important to be clear about what type
of document you are signing. This publication deals with Powers of
Attorney for nancial matters and property only. This includes your
money, investments, and everything that you own, including your
home.
Can I still make decisions for myself if I grant someone
a Power of Attorney?
As long as you are mentally capable, you can continue to make
your own decisions about your nances.
Understand the laws where you live
Each province and territory has its own laws relating to Powers of
Attorney. You need to follow the law in the province or territory
where you live.
You may want to consult a lawyer when entering into a Power of
Attorney to be sure that your document is valid, and to fully
understand what your attorney will be able to do. It is important
that you learn how you or others can monitor your attorney’s
actions, and what to do if you want to change or cancel the Power
of Attorney. Be sure that you fully understand any document before
you sign it.
2
An Enduring or Continuing Power of Attorney is a legal document
that lets your attorney continue acting for you if you become
mentally incapable of managing your nances and property. It can
also give your attorney authority over all or some of your nances
and property. An Enduring or Continuing Power of Attorney can
take effect as soon as you sign it. In some cases, it is possible to
have the Power of Attorney come into effect only when you
become mentally incapable, if this was specied in the document.
What can my attorney do?
Unless you limit your attorney’s authority, they can do almost
everything with your nances and property that you could do. If
you don’t have any limitations in your Power of Attorney
document, your attorney can do your banking, sign cheques, buy
or sell real estate in your name, and buy consumer goods. Your
attorney does not become the owner of any of your money or
property. He or she only has the authority to manage it on your
behalf.
Your attorney cannot make a will for you, change your existing
will, change a beneciary on a life insurance plan, or give a new
Power of Attorney to someone else on your behalf.
Can my attorney make decisions about my healthcare
and personal care?
In most parts of Canada, it is possible to prepare documents that
give another person the authority to make health and other types
of personal and non-nancial decisions for you, if you were to
become mentally incapable of doing so for yourself. Depending
on where you live, these documents may be called Powers of
Attorney, personal or health directives, representation agreements,
or mandates.
These documents are not the same as Powers of Attorney for
nances and property. It is important to be clear about what type
of document you are signing. This publication deals with Powers of
Attorney for nancial matters and property only. This includes your
money, investments, and everything that you own, including your
home.
Can I still make decisions for myself if I grant someone
a Power of Attorney?
As long as you are mentally capable, you can continue to make
your own decisions about your nances.
Understand the laws where you live
Each province and territory has its own laws relating to Powers of
Attorney. You need to follow the law in the province or territory
where you live.
You may want to consult a lawyer when entering into a Power of
Attorney to be sure that your document is valid, and to fully
understand what your attorney will be able to do. It is important
that you learn how you or others can monitor your attorney’s
actions, and what to do if you want to change or cancel the Power
of Attorney. Be sure that you fully understand any document before
you sign it.
4
3
These documents are not the same as Powers of Attorney for
nances and property. It is important to be clear about what type
of document you are signing. This publication deals with Powers of
Attorney for nancial matters and property only. This includes your
money, investments, and everything that you own, including your
home.
Can I still make decisions for myself if I grant someone
a Power of Attorney?
As long as you are mentally capable, you can continue to make
your own decisions about your nances.
Understand the laws where you live
Each province and territory has its own laws relating to Powers of
Attorney. You need to follow the law in the province or territory
where you live.
You may want to consult a lawyer when entering into a Power of
Attorney to be sure that your document is valid, and to fully
understand what your attorney will be able to do. It is important
that you learn how you or others can monitor your attorney’s
actions, and what to do if you want to change or cancel the Power
of Attorney. Be sure that you fully understand any document before
you sign it.
3
These documents are not the same as Powers of Attorney for
nances and property. It is important to be clear about what type
of document you are signing. This publication deals with Powers of
Attorney for nancial matters and property only. This includes your
money, investments, and everything that you own, including your
home.
Can I still make decisions for myself if I grant someone
a Power of Attorney?
As long as you are mentally capable, you can continue to make
your own decisions about your nances.
Understand the laws where you live
Each province and territory has its own laws relating to Powers of
Attorney. You need to follow the law in the province or territory
where you live.
You may want to consult a lawyer when entering into a Power of
Attorney to be sure that your document is valid, and to fully
understand what your attorney will be able to do. It is important
that you learn how you or others can monitor your attorney’s
actions, and what to do if you want to change or cancel the Power
of Attorney. Be sure that you fully understand any document before
you sign it.
5
4
What are the advantages and risks of having
a Power of Attorney?
Advantages Risks
Practical
• Makes it clear who will be
responsible for your money and
property if you can’t manage
them on your own, even
temporarily.
• Your attorney must manage your
money and property for your
benet and can be required by
law to account for and explain
how he or she is managing it.
May make you vulnerable to
nancial abuse
• Can lead to mismanagement of
your money and property if the
attorney you choose is not
trustworthy, uses your money
improperly, or does not make
decisions that are in your best
interest.
Flexible
• Can be as general or specic as
you need.
• You can choose to appoint two or
more attorneys. You can require
that your attorneys make all
decisions together (“jointly”),
or to act together or separately,
if one of them is unavailable
(“jointly and severally”). You can
also appoint alternate or
successive attorneys.
• Having two or more attorneys
could reduce potential fraudulent
use of a Power of Attorney.
Too directive or not specic
enough
• Not enough information or
limitations in the document could
lead to the mismanagement of
your nances or to your nances
being managed in a way that you
do not agree with.
• Your attorney must manage your
affairs in the way that you direct
in the document. Strict limitations
can make it difcult for your
attorney to take care of your
nances.
• If you appoint more than one
attorney to act jointly,
disagreements between them
could cause problems and lead to
delays in the management of your
nancial affairs.
Convenient
• A general Power of Attorney
allows your attorney to look after
your affairs if you are away
temporarily or if you need help
managing your affairs.
• An Enduring Power of Attorney
allows your attorney to continue
looking after your affairs if you
lose your mental capacity.
• If you lose your mental capacity
and do not have a valid Power of
Attorney document in place,
someone will need to get
authority from the court to
manage your money and property.
This can be time consuming and
expensive.
Not up-to-date
• If not reviewed regularly, your
Power of Attorney document
might not meet your current needs
or the requirements of the law.
• The person you previously
selected to be your attorney may
no longer be the best choice or
may no longer be available.
• Possibility of ‘competing’ Powers
of Attorney if you have signed
more than one Power of Attorney
document. If you appoint a new
attorney, you should cancel your
previous Power of Attorney
document and advise your
nancial institution of the change.
Risks
6
5
What are the advantages and risks of having
a Power of Attorney?
Advantages Risks
Practical
• Makes it clear who will be
responsible for your money and
property if you can’t manage
them on your own, even
temporarily.
• Your attorney must manage your
money and property for your
benet and can be required by
law to account for and explain
how he or she is managing it.
May make you vulnerable to
nancial abuse
• Can lead to mismanagement of
your money and property if the
attorney you choose is not
trustworthy, uses your money
improperly, or does not make
decisions that are in your best
interest.
Flexible
• Can be as general or specic as
you need.
• You can choose to appoint two or
more attorneys. You can require
that your attorneys make all
decisions together (“jointly”),
or to act together or separately,
if one of them is unavailable
(“jointly and severally”). You can
also appoint alternate or
successive attorneys.
• Having two or more attorneys
could reduce potential fraudulent
use of a Power of Attorney.
Convenient
• A general Power of Attorney
allows your attorney to look after
your affairs if you are away
temporarily or if you need help
managing your affairs.
• An Enduring Power of Attorney
allows your attorney to continue
looking after your affairs if you
lose your mental capacity.
• If you lose your mental capacity
and do not have a valid Power of
Attorney document in place,
someone will need to get
authority from the court to
manage your money and property.
This can be time consuming and
expensive.
Not up-to-date
• If not reviewed regularly, your
Power of Attorney document
might not meet your current needs
or the requirements of the law.
• The person you previously
selected to be your attorney may
no longer be the best choice or
may no longer be available.
• Possibility of ‘competing’ Powers
of Attorney if you have signed
more than one Power of Attorney
document. If you appoint a new
attorney, you should cancel your
previous Power of Attorney
document and advise your
nancial institution of the change.
Advantages Risks
7
6
Choosing an attorney
Who can I ask to be my attorney?
You should ask someone you trust. You may choose your spouse, a
close friend, a family member or anyone else that you trust.
Carefully consider whether they are the best choice to manage
your money and property, and do so in your best interest.
The minimum legal age for an attorney varies according to the
province or territory where you live. The person you ask to be your
attorney can refuse to act for you, so it is important to ask the
person rst if they are willing to take on this responsibility and
everything that it entails. You should also consider appointing a
substitute attorney in case the rst attorney can no longer act for
you.
Do I have to pay my attorney?
In some provinces, unless you state otherwise in the Power of
Attorney, a person appointed under a continuing Power of Attorney
may have a right to be paid. Before you sign any documents, it is a
good idea to have a conversation with the person you choose as
your attorney regarding compensation for their work. You should
include this information in your Power of Attorney document.
You may also consider appointing a trust company or a legal or
nancial professional with the skills to manage nances and
property. You will probably need to pay fees for this service. Also,
these options may only be available to you if your property is over
a certain value.
What are my attorney’s legal responsibilities?
The attorney’s role carries many legal responsibilities. Your attorney
must comply with the legal duties and responsibilities of attorneys
in the province or territory where you live. Your attorney must
manage your nances and property, and keep records, according
to any directions you have given in your Power of Attorney
document. They must act in your best interest. However, there is
always a risk that they may not do so, which is why it is important
to name someone that you can really trust and that understands
the legal responsibilities they will be taking on.
8
7
Choosing an attorney
Who can I ask to be my attorney?
You should ask someone you trust. You may choose your spouse, a
close friend, a family member or anyone else that you trust.
Carefully consider whether they are the best choice to manage
your money and property, and do so in your best interest.
The minimum legal age for an attorney varies according to the
province or territory where you live. The person you ask to be your
attorney can refuse to act for you, so it is important to ask the
person rst if they are willing to take on this responsibility and
everything that it entails. You should also consider appointing a
substitute attorney in case the rst attorney can no longer act for
you.
Do I have to pay my attorney?
In some provinces, unless you state otherwise in the Power of
Attorney, a person appointed under a continuing Power of Attorney
may have a right to be paid. Before you sign any documents, it is a
good idea to have a conversation with the person you choose as
your attorney regarding compensation for their work. You should
include this information in your Power of Attorney document.
You may also consider appointing a trust company or a legal or
nancial professional with the skills to manage nances and
property. You will probably need to pay fees for this service. Also,
these options may only be available to you if your property is over
a certain value.
What are my attorney’s legal responsibilities?
The attorney’s role carries many legal responsibilities. Your attorney
must comply with the legal duties and responsibilities of attorneys
in the province or territory where you live. Your attorney must
manage your nances and property, and keep records, according
to any directions you have given in your Power of Attorney
document. They must act in your best interest. However, there is
always a risk that they may not do so, which is why it is important
to name someone that you can really trust and that understands
the legal responsibilities they will be taking on.
9
8
What to consider when choosing an attorney
Personal
Suitability
• Does this person know how to manage money and
property? Do they do it well for themselves?
• Do you think this person will manage your money
and property in the way that you want and in your
best interest?
Trustworthiness
• Has this person always been open and honest with
you?
• Have you known this person long enough or well
enough to feel that you can trust them?
• Is this person able to act in your best interest?
Do they have any personal issues (e.g. nancial
problems or health concerns) that may interfere
with them properly managing your nances?
Experience
• Does this person understand nancial matters?
• Does this person understand the duties and
responsibilities involved in being your attorney?
Availability
• Does the person have the time to handle your
money and property as well as their own?
• Does this person live nearby and is he or she easy
to contact and readily available?
Reliability
• Has this person been someone you could rely on?
• Has this person carried through on important
decisions or duties in the past?
Willingness
• Has this person agreed to take on the responsibility?
• Does this person clearly understand what is expected
of them as your attorney?
What to consider BEFORE preparing a Power of Attorney
• Understand how the different types of Powers of Attorney work, and
decide what type will best suit your needs.
• Decide when you want the Power of Attorney to start.
• Find out how the Power of Attorney can come to an end, how you can
cancel or change the Power of Attorney, and what happens if you or
your attorney were to lose mental capacity or pass away. These answers
may vary depending on where you live.
• Make sure the person you choose is someone that you can trust to
manage your money and property in the way that you want.
• Make sure your attorney understands, or is willing to learn, his or her
legal responsibilities and duties.
• Decide whether you want to give your attorney authority over some or
all of your nancial matters (including bank accounts), and whether it
will be for general or specic purposes.
• Decide whether you want regular updates (e.g. account statements)
from your attorney sent to you, or a person you name, to check that
your affairs are being properly managed.
• If you use a Power of Attorney kit or forms from a website to set up
your Power of Attorney, you need to be sure the form is signed in
compliance with the law in your province or territory.
• Consider having a lawyer review the document to make sure that it is valid.
• Decide whether you want to appoint one or more persons, and whether
they can act alone or must act together.
• If you appoint more than one attorney, and they must act together,
consider appointing a third person or including a mechanism to resolve
disputes if the attorneys can’t agree.
• Consider appointing a substitute attorney in case your attorney is
no longer able to act for you.
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9
What to consider when choosing an attorney
Personal
Suitability
• Does this person know how to manage money and
property? Do they do it well for themselves?
• Do you think this person will manage your money
and property in the way that you want and in your
best interest?
Trustworthiness
• Has this person always been open and honest with
you?
• Have you known this person long enough or well
enough to feel that you can trust them?
• Is this person able to act in your best interest?
Do they have any personal issues (e.g. nancial
problems or health concerns) that may interfere
with them properly managing your nances?
Experience
• Does this person understand nancial matters?
• Does this person understand the duties and
responsibilities involved in being your attorney?
Availability
• Does the person have the time to handle your
money and property as well as their own?
• Does this person live nearby and is he or she easy
to contact and readily available?
Reliability
• Has this person been someone you could rely on?
• Has this person carried through on important
decisions or duties in the past?
Willingness
• Has this person agreed to take on the responsibility?
• Does this person clearly understand what is expected
of them as your attorney?
What to consider BEFORE preparing a Power of Attorney
• Understand how the different types of Powers of Attorney work, and
decide what type will best suit your needs.
• Decide when you want the Power of Attorney to start.
• Find out how the Power of Attorney can come to an end, how you can
cancel or change the Power of Attorney, and what happens if you or
your attorney were to lose mental capacity or pass away. These answers
may vary depending on where you live.
• Make sure the person you choose is someone that you can trust to
manage your money and property in the way that you want.
• Make sure your attorney understands, or is willing to learn, his or her
legal responsibilities and duties.
• Decide whether you want to give your attorney authority over some or
all of your nancial matters (including bank accounts), and whether it
will be for general or specic purposes.
• Decide whether you want regular updates (e.g. account statements)
from your attorney sent to you, or a person you name, to check that
your affairs are being properly managed.
• If you use a Power of Attorney kit or forms from a website to set up
your Power of Attorney, you need to be sure the form is signed in
compliance with the law in your province or territory.
• Consider having a lawyer review the document to make sure that it is valid.
• Decide whether you want to appoint one or more persons, and whether
they can act alone or must act together.
• If you appoint more than one attorney, and they must act together,
consider appointing a third person or including a mechanism to resolve
disputes if the attorneys can’t agree.
• Consider appointing a substitute attorney in case your attorney is
no longer able to act for you.
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What to consider AFTER you prepared a Power of Attorney
• Review the terms of your Power of Attorney regularly to make sure
it is still valid and still reects how you want your money and property
managed.
• You can make changes to your Power of Attorney, cancel your Power
of Attorney, change your attorney, or name more than one attorney,
at any time, as long as you are mentally capable. If you make any
changes, you should advise your nancial institution immediately.
• Continue to review your own nancial records on a regular basis
for as long as you can.
• Assigning a Power of Attorney does not prevent you from continuing to
manage some or all of your affairs, as long as you are mentally capable.
• Talk to your attorney regularly so that you can understand how they are
handling your money and property.
• Even though your attorney is taking care of things for you, you always
have the right to ask questions and get answers from them about your
money and property.
• If you have questions or concerns about how your attorney is managing
your affairs, you can speak to someone at your nancial institution
or seek legal advice. Attorneys can be held responsible if they fail to
manage affairs as directed in a Power of Attorney document.
• Understand that signing a new Power of Attorney, including one signed
at a bank, may cancel the previous one that you had signed.
• If you move or will need to use the Power of Attorney in another province,
territory, or country, get legal advice to be sure the document will be
recognized. It may be necessary for you to make a new document for
certain assets.
What if my bank wants me to sign
a Power of Attorney form?
Banks, credit unions and other nancial institutions may also have
their own forms to appoint an attorney to make decisions about a
specic account or property that you have with that institution.
If you already have your own Power of Attorney that gives your
attorney authority over all of your nancial affairs, including
accounts with that nancial institution, it likely isn’t necessary for
you to sign the bank’s form.
Before you decide whether or not you want to sign the bank’s
form, you may want to review it with your lawyer or with another
person whose opinion you trust. You can also show your own
Power of Attorney to the bank manager or a knowledgeable bank
representative and ask them to conrm that it can be used for
banking purposes. If you sign the bank’s form, there is a possibility
that your other Power of Attorney could become invalid.
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What if my bank wants me to sign
a Power of Attorney form?
Banks, credit unions and other nancial institutions may also have
their own forms to appoint an attorney to make decisions about a
specic account or property that you have with that institution.
If you already have your own Power of Attorney that gives your
attorney authority over all of your nancial affairs, including
accounts with that nancial institution, it likely isn’t necessary for
you to sign the bank’s form.
Before you decide whether or not you want to sign the bank’s
form, you may want to review it with your lawyer or with another
person whose opinion you trust. You can also show your own
Power of Attorney to the bank manager or a knowledgeable bank
representative and ask them to conrm that it can be used for
banking purposes. If you sign the bank’s form, there is a possibility
that your other Power of Attorney could become invalid.
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12
Joint Bank Accounts
Financial institutions such as banks, credit unions and trust
companies may offer customers the option to set up a joint
account. When the phrase “joint bank account” or “joint account”
is used in this brochure it refers to joint accounts at any of these
nancial institutions.
What is a joint bank account?
Joint accounts are bank accounts in which two or more people
have ownership rights over the same account. These rights include
the right for all account holders to deposit, withdraw, or deal with
the funds in the account, no matter who puts the money into
the account.
How does a joint account work?
As a joint account holder, you share equal access to the account
and responsibility for all the transactions made through
the account. In most cases, unless you state otherwise, the other
account holder can make transactions without your consent.
In some cases, it may be possible to specify that the consent of all
joint account holders is required to access the funds in the
account.
In many cases, joint accounts include the right of survivorship.
This means that if one of the account holders dies, the surviving
account holder becomes the owner of the account, with the right
to deposit, withdraw, and deal with the funds in the account.
However, in some cases this could be challenged by others who
may think they have an interest in the money in the account as an
inheritance. The surviving joint account holder may have to
demonstrate that the deceased account holder intended the
remaining funds be a gift to the joint account holder. This could
potentially lead to delays in the surviving account holder being
able to access funds in the account.
Note: In Québec, a joint account is frozen upon the death
of one of the joint account holders. Consult with your banking
institution to obtain more specic information about how
this works.
Ask questions
Find out how joint accounts work at your nancial institution and
ask about what happens if a joint account holder dies. Make sure
you fully understand all this information before making
any decisions.
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13
Joint Bank Accounts
Financial institutions such as banks, credit unions and trust
companies may offer customers the option to set up a joint
account. When the phrase “joint bank account” or “joint account”
is used in this brochure it refers to joint accounts at any of these
nancial institutions.
What is a joint bank account?
Joint accounts are bank accounts in which two or more people
have ownership rights over the same account. These rights include
the right for all account holders to deposit, withdraw, or deal with
the funds in the account, no matter who puts the money into
the account.
How does a joint account work?
As a joint account holder, you share equal access to the account
and responsibility for all the transactions made through
the account. In most cases, unless you state otherwise, the other
account holder can make transactions without your consent.
In some cases, it may be possible to specify that the consent of all
joint account holders is required to access the funds in the
account.
In many cases, joint accounts include the right of survivorship.
This means that if one of the account holders dies, the surviving
account holder becomes the owner of the account, with the right
to deposit, withdraw, and deal with the funds in the account.
However, in some cases this could be challenged by others who
may think they have an interest in the money in the account as an
inheritance. The surviving joint account holder may have to
demonstrate that the deceased account holder intended the
remaining funds be a gift to the joint account holder. This could
potentially lead to delays in the surviving account holder being
able to access funds in the account.
Note: In Québec, a joint account is frozen upon the death
of one of the joint account holders. Consult with your banking
institution to obtain more specic information about how
this works.
Ask questions
Find out how joint accounts work at your nancial institution and
ask about what happens if a joint account holder dies. Make sure
you fully understand all this information before making
any decisions.
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14
Why set up a joint bank account?
There are many reasons why someone may consider opening a
joint account. For example, couples may set up a joint account to
pay household bills or deal with other shared expenses. This is one
of the most common uses of joint accounts.
In some cases, joint accounts may be considered as an option for
someone to get help from family members or friends to pay bills
and manage their nances.
For example, health conditions or mobility issues could make it
difcult for someone to manage their personal banking on their
own. Getting to the bank or using online banking services can be
difcult for some people. A person may consider setting up a joint
account with a family member, such as an adult child, after the
death of a spouse who used to deal with the household nances.
It may also be important to consider other consequences of a joint
account such as whether probate fees or taxes will apply upon the
death of a joint account holder or whether the remaining funds are
intended to form part of the deceased’s estate or be gifted to the
surviving joint account holder. These considerations may be
addressed in consultation with a lawyer.
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Why set up a joint bank account?
There are many reasons why someone may consider opening a
joint account. For example, couples may set up a joint account to
pay household bills or deal with other shared expenses. This is one
of the most common uses of joint accounts.
In some cases, joint accounts may be considered as an option for
someone to get help from family members or friends to pay bills
and manage their nances.
For example, health conditions or mobility issues could make it
difcult for someone to manage their personal banking on their
own. Getting to the bank or using online banking services can be
difcult for some people. A person may consider setting up a joint
account with a family member, such as an adult child, after the
death of a spouse who used to deal with the household nances.
It may also be important to consider other consequences of a joint
account such as whether probate fees or taxes will apply upon the
death of a joint account holder or whether the remaining funds are
intended to form part of the deceased’s estate or be gifted to the
surviving joint account holder. These considerations may be
addressed in consultation with a lawyer.
Risks of a Joint Account
Control over the joint account
• Unless you are able to state otherwise in your banking agreement,
any person named on the joint account is able to withdraw money from
the account at any time. They don’t need permission from you to do so,
even if most or all the funds in the account were deposited by you.
• Funds withdrawn may never be recovered.
Relationship breakdown
• If the relationship between you and your joint account holder breaks
down, you risk the money being withdrawn or that the account may not
be handled in the way that you wished.
• If your joint account holder and their spouse separate or divorce,
the money in the joint account could be claimed in the separation or
divorce settlement.
Accountability
• It is difcult to hold a joint account holder legally accountable
for taking money from the account that they weren’t supposed to.
• You may have to go to court to challenge the actions of a joint account
holder. This could be expensive and stressful. It may also take a long
time to resolve.
Legal disputes
• If it is not clear that the money in the account was meant to be a gift to
the surviving joint account holder or whether it was meant to become
part of the deceased joint account holder’s estate, legal disputes could
arise.
• Legal disputes can be expensive and difcult to resolve.
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Creditors
• You will share responsibility with your joint holder for all transactions
made through the account.
• If one of the joint account holders has nancial problems or declares
bankruptcy, creditors could make claims on the money in the account.
Removing someone from a joint account
• The bank may require both people named in the joint account to give
approval to remove one of you from the account.
What to consider before setting up
a joint bank account
Discuss the risks and
benets of a joint
account with people
you trust
• Do you understand how a joint account works?
• Do you understand that your joint account holder
will have equal ownership of the account with
you? This means they will have the right to
withdraw and use the money in the account even
if you deposited all the money.
Meet with a nancial
advisor to nd the
right banking options
for your needs
• Have you met with a nancial advisor to discuss
different types of accounts, and what will work
best for you?
• If you are having difculty with in-person
banking, have you considered pre-authorized
deposits and bill payments from your own
account, instead of opening a joint account?
Is the person you
want to name as joint
account holder
trustworthy?
• Has this person always been open and honest
with you?
• Have you known this person long enough or
well enough to feel that you can trust them?
• Is this person able to act in your best interest?
Do they have any personal issues that may
interfere with them properly managing your
nances?
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Creditors
• You will share responsibility with your joint holder for all transactions
made through the account.
• If one of the joint account holders has nancial problems or declares
bankruptcy, creditors could make claims on the money in the account.
Removing someone from a joint account
• The bank may require both people named in the joint account to give
approval to remove one of you from the account.
What to consider before setting up
a joint bank account
Discuss the risks and
benets of a joint
account with people
you trust
• Do you understand how a joint account works?
• Do you understand that your joint account holder
will have equal ownership of the account with
you? This means they will have the right to
withdraw and use the money in the account even
if you deposited all the money.
Meet with a nancial
advisor to nd the
right banking options
for your needs
• Have you met with a nancial advisor to discuss
different types of accounts, and what will work
best for you?
• If you are having difculty with in-person
banking, have you considered pre-authorized
deposits and bill payments from your own
account, instead of opening a joint account?
Is the person you
want to name as joint
account holder
trustworthy?
• Has this person always been open and honest
with you?
• Have you known this person long enough or
well enough to feel that you can trust them?
• Is this person able to act in your best interest?
Do they have any personal issues that may
interfere with them properly managing your
nances?
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How much control
will you have over
the money in
the account?
• Have you discussed with your nancial
institution if there are ways to keep some control
over withdrawals from the account?
• Are you able to put any restrictions on the
account (e.g. putting restrictions on cheques
written from the account)?
• Have you considered setting up online banking
alerts to be notied when there are withdrawals
or other activity on the joint account?
• Are you able to check the account statements
regularly?
What if something
happens to one of
the account holders?
• Speak to someone at your nancial institution or
a lawyer to nd out what happens if you or your
joint account holder dies or if one of the
account holders loses mental capacity.
• Consider including information about your joint
account in your will, so that your wishes are
clear.
Consider all your options
Even though setting up a joint bank account may seem to be a
convenient option to get help managing your nances, there are many
risks involved. Carefully consider all the risks and get information
about all the options available to you before making any decisions.
If you prepare a detailed Power of Attorney that gives your attorney
the authority to access specic bank accounts, they will be able to
help you pay your bills and manage your nances.
With a Power of Attorney document, you can limit what your attorney
is allowed to do. With a joint bank account, you may not be able to
limit what your joint account holder can do with the money in the
account.
There are also mechanisms in place to hold an attorney accountable
if they mismanage your nances or do not manage your money in the
way that you directed them to in the Power of Attorney document. It
is very difcult to hold a joint bank account holder accountable for
the mismanagement of money in the account.
Where can I nd more information?
For more information on Powers of Attorney and joint bank accounts,
contact knowledgeable professionals in your community, including
legal aid services or associations that offer public legal education and
information. You may also want to speak with a lawyer, an estate
planner, or someone knowledgeable at your bank, credit union or trust
company.
Powers of Attorney and joint bank accounts are not the only nancial
planning tools available. If you become incapable of managing your
own nances and property, and you do not have a Power of Attorney
or joint bank account, each province and territory has laws that allow
someone else to get legal authority to manage your nances for you.
For information on other seniors-related issues, visit seniors.gc.ca, your
local Service Canada ofce, or contact your provincial or territorial
government.
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How much control
will you have over
the money in
the account?
• Have you discussed with your nancial
institution if there are ways to keep some control
over withdrawals from the account?
• Are you able to put any restrictions on the
account (e.g. putting restrictions on cheques
written from the account)?
• Have you considered setting up online banking
alerts to be notied when there are withdrawals
or other activity on the joint account?
• Are you able to check the account statements
regularly?
What if something
happens to one of
the account holders?
• Speak to someone at your nancial institution or
a lawyer to nd out what happens if you or your
joint account holder dies or if one of the
account holders loses mental capacity.
• Consider including information about your joint
account in your will, so that your wishes are
clear.
Consider all your options
Even though setting up a joint bank account may seem to be a
convenient option to get help managing your nances, there are many
risks involved. Carefully consider all the risks and get information
about all the options available to you before making any decisions.
If you prepare a detailed Power of Attorney that gives your attorney
the authority to access specic bank accounts, they will be able to
help you pay your bills and manage your nances.
With a Power of Attorney document, you can limit what your attorney
is allowed to do. With a joint bank account, you may not be able to
limit what your joint account holder can do with the money in the
account.
There are also mechanisms in place to hold an attorney accountable
if they mismanage your nances or do not manage your money in the
way that you directed them to in the Power of Attorney document. It
is very difcult to hold a joint bank account holder accountable for
the mismanagement of money in the account.
Where can I nd more information?
For more information on Powers of Attorney and joint bank accounts,
contact knowledgeable professionals in your community, including
legal aid services or associations that offer public legal education and
information. You may also want to speak with a lawyer, an estate
planner, or someone knowledgeable at your bank, credit union or trust
company.
Powers of Attorney and joint bank accounts are not the only nancial
planning tools available. If you become incapable of managing your
own nances and property, and you do not have a Power of Attorney
or joint bank account, each province and territory has laws that allow
someone else to get legal authority to manage your nances for you.
For information on other seniors-related issues, visit seniors.gc.ca, your
local Service Canada ofce, or contact your provincial or territorial
government.
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