Can you hire someone to be power of attorney for property in Canada?

Let’s break down what you need to know before taking on the role, the important conversations you should have beforehand, and how to manage the responsibilities if they start to feel like too much. Whether you’re thinking about becoming a POA or you already are one, here are my practical tips to help make the process a bit smoother and more manageable.

What are the responsibilities of a power of attorney for property?

Having a power of attorney for property is like having a financial superhero on standby for someone, called the “grantor.” This legal document allows a chosen trusted person to step in and manage your financial affairs if you’re unable to do so yourself. The person who takes on this role is known as the “attorney” (not to be confused with a lawyer).

It’s a big responsibility, and it comes with accountability and a duty to act in the best interests of the person being represented. The POA must manage the grantor’s money, investments and property with care, honesty and integrity. Essentially, the POA is accountable for their actions and must be prepared to justify their decisions, as they hold a position of trust and responsibility. 

So, Canadians must choose our financial superheroes wisely and rest easy knowing our assets are in good hands.

Should you take on the role of an attorney for property?

Taking on the role of a POA for property means you’re expected to make decisions about money, investments and property on behalf of another person. Here are some tips to help you manage these responsibilities with grace and confidence.

Tips for managing POA responsibilities

First and foremost, communication is key. Keep the person you’re representing informed about the property decisions you’re making and the reasons behind them. Transparency builds trust and ensures that you’re both on the same page.

Second, stay organized. Keep detailed records of all transactions and decisions you’ve made. This will not only help you stay on top of things but also provide a clear trail if any questions arise.

Now, let’s talk about the elephant in the room: what to do if the responsibilities start to feel overwhelming. It’s perfectly normal, especially given the weight of the role. If you find yourself struggling, don’t hesitate to seek support. You can consult with financial advisors, legal professionals and even mental health support workers. Remember, superheroes need a sidekick.

Can you hire someone to be POA of property?

Yes, you can renounce a POA role. The process involves notifying the person who appointed you and the court. It’s important to handle this transition with care and enlist a suitable replacement.

Obtaining legal advice is crucial in this process. It ensures that all legal requirements are met and the transition is smooth and legally sound. It also helps to make sure any costs the new POA for property accrues are approved, as they can vary from independent professionals to financial institutions and trust companies.

A legal professional can guide you through the necessary steps, help you understand your obligations, and properly document the renunciation of the POA. This not only protects you from potential legal issues down the line but also protects the person you were representing and ensures they’re not left in a vulnerable position.

Starting the conversation

When discussing the role of a POA for property, have open and honest conversations to ensure that both parties are on the same page.

For the grantor: Talk about your expectations. Ask questions like “How comfortable are you with managing my financial affairs?” and “Do you understand the legal obligations involved?” Ask your potential POA how they plan to keep you informed about the decisions they make and the actions they take.

Also discuss your financial goals and priorities, so your attorney can make decisions that align with your wishes. Share any specific instructions or preferences you have, such as how you want your investments managed and the bills that need to be prioritized. Be transparent and have regular communication.

For the POA: You want to fully understand the person’s expectations and preferences. Start by asking questions like “What are your financial goals and priorities?” “Are there any specific instructions or preferences you have for managing your finances?” “How often would you like updates on your financial affairs?” and “What is the best way to communicate?” Also discuss how you will keep them informed about the decisions you make and the actions you take.

Also talk about what happens should you need to renounce the role. These conversations will help ensure both parties have a clear understanding of the expectations and responsibilities involved. You may want to consider meeting with various types of professionals or firms to see who may be the best fit to take on the role.

Who can you hire a power of attorney for property?

If you are leaving your role as POA and the grantor has no other family members or friends who can step in, who can you hire?

Trust companies and financial institutions often provide professional attorney for property services, offering expertise in managing assets, paying bills and overseeing financial matters. Some lawyers specializing in estate law may also act in this role, and they would be an excellent option, particularly if there are complex legal issues.

In some cases, private firms and professionals (such as myself!) may be another option, depending on the needs and specialized attention required.

It’s crucial to choose a professional or firm that aligns with your expectations and possesses the qualifications to manage the grantor’s ongoing affairs effectively.

Should you be a power of attorney for property?

Being a POA for property is a significant and rewarding role that requires diligence and transparency to navigate the complexities of managing someone else’s financial affairs. Communication is key, as both the POA and grantor need to understand the expectations and responsibilities involved.

If the role becomes too overwhelming, or if you must stop doing it for another reason, seeking legal advice can make all the difference in ensuring a smooth and ethical transition. Embrace the journey, seek support when needed, and know that it’s possible to step down if the responsibilities become too much.

Not all heroes wear capes—sometimes they are a POA. And sometimes they know when to hire someone else in their place.

Read more about estate planning in Canada:

• Can you decline or step down as power of attorney in Canada?
• Tax and estate planning for joint accounts
• How to pay yourself as a power of attorney in Ontario
• When does the role of power of attorney end—and estate trustee begin?

About Debbie Stanley, TEP, MTI

Debbie Stanley is an estate and trust professional, and CEO of the estate firm ETP Canada. She is a writer, speaker and regularly featured guest on Zoomer Radio.

Facebook Website