A power of attorney (POA) is a legal document that authorizes another person to make decisions on your behalf. There are two main types: a Power of Attorney for Property (financial decisions) and a Power of Attorney for Personal Care (healthcare and living decisions).
How a Power of Attorney Works
A continuing POA for Property remains in effect even if you become mentally incapacitated. Without it, a court must appoint a guardian to manage your affairs — costly, slow, and public. A POA for Personal Care authorizes your named attorney to make healthcare and housing decisions on your behalf when you cannot.
Why It Matters in Retirement
A will covers what happens after you die. A POA covers what happens if you are alive but incapacitated. Both are equally important and should be in place before they are needed — a POA cannot be created after capacity is lost.
Related Resources
This article provides general financial education for Canadians. It is not personalized financial advice. For guidance specific to your situation, consider speaking with a CFP professional.