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WHAT IS A CONTINUING POWER OF ATTORNEY FOR PROPERTY?

It used to be the law that a Power of Attorney could no longer be used once the Grantor (the person signing the POA) becomes mentally incompetent. That created many problems in families where a Senior specifically prepared a POA to permit his or children to sign documents but then the Senior began to suffer from dementia. In the early 1970's when that happened it was necessary for the children to apply to a Government office for permission to administer the Senior family member's estate.

Legislation in the late 1970's permitted people in Ontario to prepare a "Continuing Power of Attorney for Property" that would survive if the  Grantor become mental incompetent or suffered a stroke. P.O.A.'s drafted after that date contained a clause saying that in accordance with the Powers of Attorney Act the P.O.A. could be exercised during subsequent legal incapacity. Such Continuing P.O.A.s would also include a clause saying that the P.O.A. would cover management of the estate while the Grantor was a patient in a psychiatric hospital under the Mental Health Act. It was also a good idea to draft the word "Continuing" into the title of the document.

Since the implementation of the Substitute Decisions Act in Ontario (1992) the important "Continuing" paragraph authorizes that this authority shall be exercised during any incapacity to manage property. If the important Continuing paragraph isn't in a P.O.A. then the old law approach still applies: the power ends on incompetency.


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