Power of Attorney
A legal document that lets someone else make financial or medical decisions on your behalf if you become unable to.
Last reviewed July 28, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
A power of attorney is a legal document naming someone (an 'attorney,' though not necessarily a lawyer) to make decisions for you — typically split into one for property/finances and one for personal care/health — if illness, injury, or incapacity leaves you unable to make them yourself.
Why it matters
Without one, family members may need to apply to a court for the legal authority to manage your finances or make care decisions on your behalf — a slower, more expensive, and more stressful process than having one in place beforehand.
Common misunderstandings
- A power of attorney is not the same as a will — a will only takes effect after death; a power of attorney only takes effect while you're alive but unable to act.
- Requirements and terminology vary by province — what's valid and how it's structured differs across Canada, so a document drafted for one province isn't automatically valid in another.
Where you'll see it
In estate planning conversations, and on the checklist of documents a financial planner asks for at a first meeting.
Related terms
Want a second opinion on your budget or emergency fund?
Book a free check-upRelated reading
What Is Financial Planning — and When Should You Actually Start?
Financial planning isn't a reward for having money figured out — it's the process that gets you there. What it covers, when to start, and the six-step process a planner walks you through.
14 min read
Wealth PlanningEstate Planning 101: Why Every Canadian Adult Needs a Plan
Estate planning isn't just for the wealthy or the elderly. Here's what it actually covers, the core documents involved, and why 'I'll do it eventually' is a riskier default than it feels.
5 min read