A power of attorney (POA) is a legal document that allows someone to act on your behalf in financial and legal matters. Here's a breakdown of the different types of POAs, the powers they grant, and the restrictions that apply:

  • General – Valid as soon as it’s executed and becomes void upon the donor’s mental incapacity.
  • Enduring, or continuing power of attorney (EPOA) – Valid as soon as it’s executed and signed by the donor and the attorney; continues even in the case of the donor’s subsequent mental incapacity.
  • Springing – Not valid until a specified event occurs (e.g., the donor becomes mentally incapable). The event must be clearly defined, and the method of determining when it’s occurred must be outlined in the POA (e.g., by written opinion of at least one doctor).
  • Limited – Valid as soon as it’s executed; allows the attorney to perform limited tasks or act specifically on one account (e.g., the donor’s out of the country for two months and grants limited POA to access a financial account).

General powers:

  • The attorney has authority to deal with financial and legal matters, but not health or personal care issues.
  • The attorney can potentially assume complete authority over the donor’s affairs.
  • The attorney has authority to do anything with the donor’s property that the donor could do themselves, subject to any limitations under the Power of Attorney Act and the POA document.
  • If you lose legal decision-making capacity, you cannot revoke or make an enduring POA document.

Restrictions to powers:

  • For real estate, a non-enduring POA is only valid with the BC Land Title Office for three years (unless this time limit is expressly excluded in the POA) and must be signed by a lawyer or notary.
  • The attorney cannot act where the competency to do the act arises from a personal duty requiring skill or discretion (e.g., cannot swear a verifying affidavit on behalf of the donor).
  • Cannot make, change, or revoke a Will.
  • Cannot change a beneficiary of a Will, registered plan, or life insurance (i.e., any testamentary disposition).
  • Cannot assign or delegate authority to another person.
  • Vancity allows attorney access to existing credit lending under a POA if the POA specifically allows it; for new credit lending, Vancity will use lending guidelines to assess.
  • The attorney may not exercise the POA for their own benefit unless authorized by the document or with the full knowledge and consent of the donor.
  • Must not let their own interests conflict with those of the donor.
  • While not explicitly prohibited, using a POA to add a joint name to a donor's account can place the donor’s assets at risk and is generally not in their best interest. Vancity doesn’t allow an attorney under VLPOA or an external EPOA or non-EPOA to add a joint member to the donor's account unless expressly authorized by the POA document or with the donor’s consent and knowledge.

More restrictions are discussed in this article.  

Investments:

  • The Trustee Act authorizes trustees using the "prudent investor rule" to invest, and POAs are subject to the same rules.
  • Trustees may invest in any form of investment, provided they exercise the care, skill, diligence, and judgment of a prudent investor.
  • If the donor owns or intends to own speculative or non-income-producing assets and wishes the attorney to manage or retain such investments, the POA should expressly address this.

For more information, check the Canadian Bar Association.

The response set out above is for your information only and is based on general assumptions and the facts presented to Vancity. While our goal is to offer current, accurate and clearly expressed information, Vancity does not warrant the accuracy, adequacy or timeliness of this information. Changes to the assumptions or facts or to any applicable laws or regulations could affect the validity of this information. The information is not intended to be investment, legal, accounting, tax or other advice and you should not rely on it without seeking the advice of professional advisors to ensure your particular circumstances are properly considered. Vancity is not responsible for loss or damage that results from reliance on this information.

(c) 2025 Vancouver City Savings Credit Union. All rights reserved.

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