What happens to my finances if I have no power of attorney and I lose capacity in Ontario?

If you lose mental capacity in Ontario and have no power of attorney for property in place, no one automatically has the right to manage your finances — not even your spouse or adult children. Instead, a formal process must take place to appoint someone to manage your affairs.

In Ontario, if you are found incapable of managing property (typically after a capacity assessment), the Public Guardian and Trustee (PGT) becomes your statutory guardian of property automatically. The PGT is a government office, and while it will manage your affairs lawfully, it does so without any knowledge of your preferences, values, or wishes.

A family member who wants to take over can apply to the court to be appointed as your guardian of property in place of the PGT. This is a more formal, time-consuming, and costly process than simply having a power of attorney in place. The court will scrutinize the application and may require financial security be posted.

This is exactly the situation that a well-drafted power of attorney is designed to prevent. By naming a trusted person now — while you have capacity — you avoid the costs, delays, and loss of control that come with having the PGT or a court-appointed guardian manage your affairs.