Power of Attorney Misuse in Ontario: How to Recognize It and Stop It

You've noticed something is off. Your elderly parent, who was financially comfortable, suddenly can't pay for groceries. Or a sibling who holds their Power of Attorney has stopped returning calls and started making unexplained purchases. Or your aunt — whose bills your cousin now manages — seems confused, isolated, and frightened when financial topics come up.

Financial elder abuse is one of the most common forms of elder abuse in Canada, and a Power of Attorney for Property is, unfortunately, one of the most common vehicles through which it happens. The authority to manage someone's money, investments, and property is immense. When it is misused, the damage can be devastating and fast-moving.

If you suspect a power of attorney is being abused in Ontario, you are not powerless. Ontario's Substitute Decisions Act gives courts and oversight bodies real tools to investigate, freeze assets, remove attorneys, and order repayment. This article explains what misuse looks like, who you can call, and what legal remedies are available.

Warning Signs of Power of Attorney Misuse

Misuse rarely announces itself. It tends to emerge as a pattern — small things that individually might have innocent explanations, but together point to something wrong. Watch for:

Changes in financial lifestyle

• Unexplained withdrawals from bank or investment accounts
• The grantor (the person who signed the POA) suddenly lacks money for everyday needs
• Luxury purchases or large cash gifts to the attorney or the attorney's family
• Bills going unpaid despite the grantor having had sufficient assets

Access and transparency problems

• The attorney refuses to show account statements to other family members or to the grantor
• The attorney cannot or will not explain where money has gone
• Financial records that used to be accessible have disappeared

Isolation of the grantor

• The attorney controls who can visit or speak with the grantor
• The grantor appears reluctant to speak freely in the attorney's presence
• Other family members are being cut off or told conflicting stories

Sudden changes to financial arrangements

• New beneficiary designations, account changes, or property transfers that benefit the attorney
• Loans or gifts to the attorney with no clear documentation
• The grantor's home being sold or encumbered without a clear explanation

None of these signs is conclusive on its own. But if several apply, the situation warrants investigation.

Who Can Investigate

The Public Guardian and Trustee (PGT)

Ontario's Public Guardian and Trustee has the authority under the Substitute Decisions Act to investigate complaints about attorneys for property. If you have reason to believe an attorney is not acting in the grantor's best interests, you can contact the PGT's office directly.

The PGT can investigate, request financial records, and in serious cases apply to court for interim protective orders. The PGT does not act as a lawyer for you or your family — it acts in the interest of the incapable or vulnerable person. But it is a real and meaningful resource, and it does not cost you anything to contact.

Police

If the attorney's conduct amounts to theft, fraud, or criminal breach of trust, it can be reported to police. Financial elder abuse is a criminal matter in sufficiently serious cases. A criminal investigation proceeds on its own track from civil remedies, and both can run simultaneously.

A Lawyer

A lawyer experienced in estate litigation can advise you on your specific options, help you gather evidence, and bring a court application. In many cases, a lawyer is essential — court processes have strict procedural requirements, and missing a step can delay or jeopardize an application.

Legal Remedies Under the Substitute Decisions Act

Ontario courts have a range of tools to address POA misuse. The most significant are:

Passing of Accounts

"Passing of accounts" sounds technical, but the concept is straightforward: the attorney is required to produce a full, detailed record of every financial transaction they have conducted on the grantor's behalf — every deposit, withdrawal, transfer, investment, and expense — and submit it to the court for scrutiny.

Under the Substitute Decisions Act, certain people have the right to apply to court to require an attorney to pass accounts. This includes the grantor themselves (if they have or regain capacity), the grantor's guardian of property (if one has been appointed), the PGT, and certain other people with a legitimate interest.

The court examines the records. If the attorney cannot explain or justify transactions, the court can disallow them and order repayment. This is a powerful accountability mechanism, and the threat of it alone sometimes prompts an attorney to correct their conduct or step down.

Removal of the Attorney

A court can terminate an attorney's authority entirely. If the attorney has been misusing the POA, has a conflict of interest, or is simply not acting in the grantor's best interests, the court has the power to remove them and, if necessary, appoint a replacement — either another individual or the PGT.

Removal is serious relief. Courts do not grant it lightly, and an applicant will need evidence. But it is available, and it stops the misuse going forward.

Damages

Where the attorney has caused financial loss through misuse, the court can order repayment. This is a civil remedy, separate from any criminal consequences. Recovering money from someone who has already spent it can be difficult in practice, but court orders can be enforced against assets and wages.

Protecting Someone Urgently: Interim Relief

If the situation is urgent — money is actively being drained, property is about to be sold, or the vulnerable person is in immediate financial danger — courts can grant interim relief on short notice. This may include freezing assets or requiring the attorney to stop transacting pending a full hearing.

Interim applications are procedurally demanding and move quickly. If you believe someone is in immediate financial danger, contact a lawyer as soon as possible. Do not wait for a full hearing to be scheduled.

What Evidence Courts Look For

If you are considering bringing an application, start gathering what you can:

• Bank and investment account statements (as far back as possible)
• Copies of the POA document itself
• Records of property transactions, beneficiary changes, or large transfers
• Any written communications from the attorney about the grantor's finances
• Evidence of the grantor's prior financial habits and lifestyle (for comparison)
• Any statements the grantor has made about feeling pressured or confused

You do not need to have perfect evidence before speaking with a lawyer. A lawyer can advise you on what is sufficient to start and what can be compelled through the court process.

Frequently asked questions