What is the difference between a will and a power of attorney in Ontario?
A will and a power of attorney (POA) are both essential estate planning documents, but they operate at very different times and for very different purposes.
A will takes effect only after you die. It appoints an executor, sets out who receives your property, names guardians for minor children, and creates any trusts you want. A will has no legal effect while you are alive.
A power of attorney, by contrast, is effective during your lifetime and deals with incapacity. In Ontario there are two types: a Continuing Power of Attorney for Property, which authorizes your chosen attorney to manage your finances and property if you become unable to do so yourself, and a Power of Attorney for Personal Care, which authorizes someone to make medical and care decisions on your behalf if you lack the mental capacity to make them yourself.
Both documents become useless after your death — your attorney's authority ends when you die. At that point, the executor named in your will takes over.
Having all three documents — a will, a continuing POA for property, and a POA for personal care — provides complete coverage for both incapacity during life and distribution on death. Many people make the mistake of only having a will, leaving a gap if they become incapacitated before they die.
Key takeaways
- A will governs what happens after death; a power of attorney operates during incapacity.
- Ontario has two POA types: property (finances) and personal care (medical decisions).
- A POA ceases at death; the executor's authority under the will then begins.
- All three documents together provide full coverage for incapacity and death planning.