Does a Power of Attorney End at Death in Manitoba?

If you have been managing a parent's money as their attorney, their death can feel like a sudden stop. You may still hold the bank cards, the paperwork and the passwords, and you may wonder what you are allowed to do next.

This article explains in general terms what happens to a power of attorney at death in Manitoba, what you should stop doing, and how the estate is taken over. Every estate is different, so a lawyer can confirm how this applies to yours.

This article covers the law of Manitoba.

The short answer: the authority ends

Under The Powers of Attorney Act, a power of attorney terminates when the donor dies. The donor is the person who gave the power, and the attorney is the person authorized to act for the donor.

This is true even for an enduring power of attorney, which is one that continues despite the donor's mental incompetence. That kind of document is built to survive loss of capacity, not death. The same Act says the power also ends if the attorney dies, becomes bankrupt or becomes mentally incompetent.

What if you acted before you knew?

Sometimes an attorney pays a bill or moves money before learning the donor has died. The Act says an attorney is not liable to the donor or the estate for acting after termination, including death, if they did not know of it and could not have known with reasonable care. Acts in favour of a person who did not know of the termination also remain valid.

That protection depends on not knowing. Once you know about the death, treat your authority as finished.

What to stop doing right away

• Do not make new withdrawals, transfers or payments from the person's accounts for the estate or for yourself.
• Do not sell, give away or transfer property, including a vehicle or the home.
• Do not pay yourself or relatives back for earlier expenses without sorting it out through the estate.
• Do not cancel or change accounts, benefits or insurance without first checking what the executor needs.

While you acted, the law set a standard of care. An uncompensated attorney must use the judgment of a prudent, discreet and intelligent person managing their own affairs, and a compensated attorney must meet the standard of a prudent professional managing other people's property. Keeping clear records of what you did is a sensible step, and a lawyer can confirm what, if anything, you may need to explain to the executor.

Who takes over after death

After death, the estate is looked after by a personal representative, usually an executor named in a will or an administrator appointed by the court when there is no will. The Canada Revenue Agency says the legal representative should obtain a clearance certificate before distributing assets, and distributing without one while tax is owing can make the representative personally liable up to the value of the assets distributed.

If no one is willing, capable and appropriate to act, the Public Guardian and Trustee describes itself as an administrator of last resort. On the Public Guardian and Trustee's own application, the court may appoint it as administrator if the person left property in Manitoba and no grant has been issued here. Unless the court orders otherwise, that application cannot be made until 120 days after death if there is a will, or 30 days if there is none. The Public Guardian and Trustee is not required to accept an appointment just because it has the power to.

If the Public Guardian and Trustee was already acting for the person, different rules can apply, and it may keep managing the property until a court appoints an executor or administrator.

What to do next

• Tell the executor, or the next of kin if no executor is known, that the power of attorney has ended.
• Stop all dealings under the power of attorney and keep the document safe.
• Gather statements, receipts and a simple record of every transaction you made as attorney.
• Keep the person's personal papers available, since they can help identify next of kin.
• Order death certificates from Manitoba Vital Statistics, which charges $30.00 for each certificate or certified copy.
• Speak with a lawyer if the family disagrees, if you are unsure about something you did, or if no one is able to act as executor.

If you need to reach the Public Guardian and Trustee about a deceased estate, call the office, say it is about a deceased estate and give the deceased's last name.

Frequently asked questions