- A Continuing Power of Attorney for Property makes the attorney responsible for the grantor's financial affairs generally, and tax compliance is squarely part of that.
- - Filing the grantor's ongoing annual returns, using the same regular filing deadlines that applied before the person became incapable - Paying amounts owing from the grantor's own funds…
- Having a valid power of attorney document doesn't automatically mean the CRA's systems already know you're authorized to act.
When someone becomes mentally incapable and can no longer manage their own finances, their tax obligations don't pause along with everything else. If you've stepped in as their attorney for property, filing taxes for the incapable person you're now responsible for is one of the less obvious — but genuinely required — parts of the role.
This is a duty that tends to catch people off guard, partly because it isn't the first thing anyone thinks of when they picture "managing someone's finances."
Managing Property Includes Managing Taxes
A Continuing Power of Attorney for Property makes the attorney responsible for the grantor's financial affairs generally, and tax compliance is squarely part of that. This isn't a special add-on duty; it flows from the same fiduciary obligation that requires the attorney to pay bills, manage accounts, and keep the grantor's financial life in order.
In practical terms, that means the attorney is expected to see that annual tax returns continue to be filed on time, using the grantor's own funds to pay any amount owing, for as long as the grantor is alive and the power of attorney remains in effect.
What the Attorney Is Actually Responsible For
- Filing the grantor's ongoing annual returns, using the same regular filing deadlines that applied before the person became incapable
- Paying amounts owing from the grantor's own funds — never the attorney's personal money, and never mixed together with it
- Responding to Canada Revenue Agency correspondence on the grantor's behalf, once properly authorized to do so
- Keeping records supporting the return, in case CRA has questions or the accounting is ever reviewed
Getting CRA to Recognize You as the Attorney
Having a valid power of attorney document doesn't automatically mean the CRA's systems already know you're authorized to act. There's a separate step involved in registering as an authorized representative with the CRA before you can access the grantor's tax information or file on their behalf electronically. Until that's in place, an attorney may find themselves unable to even view what's owing, let alone pay it.
What Happens If Taxes Are Neglected
An attorney who fails to keep the grantor's taxes current isn't just risking penalties and interest accumulating against the grantor's own funds. A documented failure to manage this properly can also become part of any later accounting the attorney is required to give — whether to the grantor, a court, or, after death, an estate trustee reviewing what happened during the period of incapacity.
This Is Different From the Deceased's Final Tax Return
It's worth being precise about where this duty ends. Everything above concerns a living person who is incapable — their ordinary annual filings continue, and the attorney is responsible for them. Once that person dies, the power of attorney ends automatically, the attorney's authority is over, and a separate, later obligation begins: the deceased's final ("terminal") T1 return, which is the estate trustee's responsibility, not the former attorney's. As of mid-2026, that terminal return is generally due by April 30 of the year after death for most deaths, or six months after the date of death for deaths occurring in November or December — figures change, so verify the current deadline before relying on it, and note that different rules can apply where the deceased ran a business.
Frequently asked questions
Can I be personally liable for taxes owed by the person I manage?
Generally, an attorney manages the grantor's tax obligations using the grantor's own money and isn't personally on the hook for the underlying tax debt itself. Personal exposure tends to arise instead from mismanagement — for example, distributing or spending funds in a way that leaves nothing available to pay a known tax debt.
What if I don't know whether taxes have been filed for previous years?
This is common when someone steps in partway through a person's decline. Registering with CRA as an authorized representative is usually the first step to finding out what's outstanding, followed by working through any backlog before it grows further.
Does this responsibility end if the grantor is moved into long-term care?
No. The attorney's responsibility for the grantor's tax filings continues based on the person's capacity and the power of attorney's terms — a change in living situation, on its own, doesn't end or pause the role.
Who takes over tax filing once the person passes away?
Once the grantor dies, the power of attorney ends automatically and a properly appointed estate trustee takes over responsibility for the deceased's final return and any ongoing estate tax matters, not the former attorney.
This is a wills & estates question
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