What Each Type of Power of Attorney Authorizes

A Power of Attorney (POA) is a legal document that grants someone the authority to act for you if you become incapable of doing so. But not all POAs are the same. Each one gives your attorney a different kind of decision-making power—and each comes with its own boundaries, duties, and responsibilities.

Understanding exactly what each POA authorizes helps you make informed choices, communicate clearly with your attorney, and build a plan that works both legally and personally.

What a Power of Attorney for Property Covers

This document allows your chosen attorney to manage your financial and legal affairs. It can take effect immediately or only if you become mentally incapable, depending on how you draft it.

Authorizes Attorney To…	Examples
Manage bank and investment accounts	Deposit cheques, pay bills, move funds, handle investments
Sign documents and enter contracts	Sign leases, file tax returns, deal with insurance or pension paperwork
Buy, sell, or manage real estate	List a home for sale, sign legal documents, manage rental properties
Access government benefits	Apply for or redirect payments such as CPP or OAS

Tip: You can limit what this POA covers by specifying which accounts, properties, or financial activities are included—or excluded.

What a Power of Attorney for Personal Care Covers

This document takes effect only if you are no longer capable of making decisions about your health or personal life. It does not apply while you are still mentally capable.

Authorizes Attorney To…	Examples
Make healthcare decisions	Consent to surgery, medications, or other treatments
Decide where you live	Choose a care facility or arrange home support
Make daily living decisions	Determine meals, clothing, hygiene, and spiritual practices
Access your medical information	Speak with doctors, review records, manage care coordination

Important: Your attorney must follow any instructions you include in your POA or in a separate “advance directive” or letter of wishes. They cannot override your documented preferences.

**Learn what each type does not authorize**

There are clear legal and ethical limits to what a Power of Attorney can do, even if the document seems broadly worded.

Attorneys cannot:

Change your Will or create a new one
Transfer authority to someone else
Use your money for their personal benefit (unless clearly authorized)
Override legal restrictions set by the province

The role of an attorney is fiduciary. That means they must act in your best interests, keep records, avoid conflicts of interest, and follow your instructions as closely as possible.

How Optimize Helps You Use POAs Effectively

At Optimize, we do more than help you appoint attorneys. We guide you in crafting Powers of Attorney that are clear, customized, and integrated into your overall plan.

We help you:

Define what each POA should cover based on your life and goals
Prepare your attorneys with instructions and context
Coordinate your POAs with your financial and health-related plans
Review your documents regularly to ensure they still reflect your wishes

We help you build a plan that does not just exist on paper—but one that works in the real world.

Why Clarity About POA Authority Matters

Granting someone power over your finances or care is an act of deep trust. Make sure that trust is supported by clear instructions, legal boundaries, and open communication.

When you know what your attorney can and cannot do, you are better prepared. And when they know their role clearly, they are more confident and effective.

Choose carefully. Define clearly. And give your future self a plan that protects your life—at every stage.