Moneysense.ca
By Jason Heath, March 10th, 2025
Power of attorney compensation can be high, but the role can be a lot of work. Here’s what happens if you can’t accept the role or must resign.
When you prepare a power of attorney for property (called a mandate in Quebec), you appoint someone to make financial decisions on your behalf. These documents are generally prepared so that if you become incapacitated, there’s someone who can manage your finances for you. Someone acting as an attorney can typically manage your bank accounts, pay your bills and make decisions about your other assets. They cannot prepare a new will for you, nor can they make changes to your testamentary wishes like registered account or life insurance beneficiary designations.
A power of attorney for personal care may also be known as a personal directive, representation agreement or protection mandate, depending on the province or territory. These documents are used to appoint someone to make health-care decisions on your behalf. Many people appoint the same attorney for financial and health matters, but it’s not a requirement. One family member or friend may be better suited to make financial decisions over health-care ones, and vice versa.
Someone who is named in a power of attorney or similar estate document is not obligated to act. They may choose to decline their appointment. This is a reason to make sure you let someone know beforehand that you are planning to name them.
You can definitely resign from your role as attorney… You should seek legal advice about how to step down from your appointment properly. You should inform all parties in writing and make sure a new representative is in place to maintain continuity. If there’s no replacement named in the power of attorney, you may be able to have a bank-owned trust company or other professional take over for you.
Jason Heath, CFP, Objective Financial Partners Inc., Toronto
