What an Attorney for Property Cannot Do in Ontario

A Continuing Power of Attorney for Property gives someone broad authority to manage another person's finances. But "broad" does not mean "unlimited." Ontario law draws clear lines around what an attorney for property is and is not permitted to do — and crossing those lines, even with good intentions, can have serious legal consequences.

This is an article for two audiences. If you are an attorney wondering whether a specific action is within your authority, this will help you understand the limits on attorney for property in Ontario. If you are a family member concerned that an attorney may be overstepping, this will help you recognize the warning signs.

Neither situation is uncommon. The rules are not always intuitive, and misunderstandings happen.

The starting point: authority comes from the document and the law

An attorney for property gets their authority from two places: the power of attorney document itself, and Ontario's Substitute Decisions Act. If the document permits something, the attorney can do it. If the law prohibits something, no document can override that. And if neither the document nor the law authorizes something, the attorney cannot do it.

When in doubt, the answer is almost always: stop, and get legal advice before acting.

What an attorney for property cannot do

Make or change a Will

This is one of the most important limits to understand. An attorney for property has no authority to make a new Will for the grantor, or to change, revoke, or add to an existing Will. A Will is a deeply personal legal document that requires the testator's own capacity and intent at the time of signing. That authority cannot be delegated.

An attorney who attempts to alter the grantor's estate plan — even with apparent justification — is acting outside their authority. Courts treat this seriously.

Make gifts, donations, or transfers beyond narrow limits

Unless the power of attorney document explicitly authorizes gifts or charitable donations, an attorney for property generally cannot give the grantor's money away. This rule exists precisely to protect people who have lost capacity from having their assets depleted by well-meaning (or not-so-well-meaning) attorneys.

The Substitute Decisions Act does permit small customary gifts — birthday gifts, holiday gifts, charitable donations consistent with the grantor's established giving pattern — provided they are reasonable in the context of the grantor's overall financial situation. But these are narrow exceptions, not a general licence to redistribute the grantor's wealth.

An attorney who transfers significant sums to family members, charities, or themselves — without specific authorization in the document — is very likely acting outside their authority.

Give loans to themselves from the grantor's funds

An attorney cannot lend the grantor's money to themselves. This is a direct conflict of interest, and it is prohibited regardless of what the attorney intends to do with the money or when they plan to repay it. The grantor's assets are not a source of personal credit for the attorney.

More broadly, an attorney cannot use the grantor's funds to benefit themselves financially in any way that is not expressly authorized by the document or required to reimburse legitimate out-of-pocket expenses with proper documentation.

Change beneficiary designations

Beneficiary designations on life insurance policies, registered retirement savings plans, tax-free savings accounts, and similar accounts are not financial management decisions that fall within an attorney's general authority. An attorney for property cannot change, remove, or add beneficiaries to the grantor's registered accounts or insurance policies.

Attempting to do so would potentially alter the grantor's estate plan — which, as discussed above, is outside the scope of the role entirely.

Make a new Power of Attorney on the grantor's behalf

An attorney cannot create a new power of attorney appointing someone else to manage the grantor's property. The authority to grant a power of attorney is personal to the grantor and requires the grantor's own capacity at the time. If the grantor has lost capacity and no power of attorney is in place, the solution is a court-appointed guardianship — not a substitute document created by someone else.

Continue acting after the grantor's death

The moment the grantor dies, the Continuing Power of Attorney for Property is extinguished. The attorney's authority ends immediately and completely. From that point on, it is the estate trustee (executor) named in the Will — or appointed by the court — who has authority over the grantor's assets.

An attorney who continues to transact on the grantor's accounts after death is acting without any legal authority. This includes paying bills, making transfers, or accessing funds for any reason, however reasonable it may seem. If you are an attorney who has just learned the grantor has died, stop all transactions immediately and seek legal advice.

Conflict of interest: what it means in practice

Conflict of interest rules prohibit an attorney from placing their own financial interests ahead of the grantor's. This goes beyond the specific prohibitions above. It means an attorney must not:

• Purchase the grantor's property for themselves, even at fair market value, without proper independent authorization
• Receive financial benefits from third parties in exchange for decisions made as attorney
• Use their position to pressure the grantor into changing their estate plans, making gifts, or altering beneficiary designations while the grantor still has capacity

When a conflict of interest exists, the attorney must either decline to act on that particular matter or obtain specific legal authorization. Ignoring the conflict and proceeding anyway exposes the attorney to personal liability and potential legal action.

How to spot an attorney who may be overstepping

If you are a family member or friend of the grantor, here are patterns that warrant closer attention:

• The attorney cannot or will not produce records of their transactions
• Large sums have moved from the grantor's accounts to the attorney's personal accounts or to family members
• The grantor's Will was changed, or beneficiary designations were altered, after the power of attorney was signed
• The attorney is making gifts or donations that seem inconsistent with the grantor's past patterns
• The attorney is making decisions that personally benefit themselves

None of these patterns automatically proves wrongdoing — there may be innocent explanations. But each one is worth investigating, and a lawyer can help you understand your options. The Office of the Public Guardian and Trustee in Ontario also has investigative authority in cases of suspected financial abuse.

Frequently asked questions