Understanding the Difference Between a Continuing and Springing Power of Attorney for Property

When planning for the future, one of the most important legal documents you can have in place is a Power of Attorney for Property. It ensures that your financial and property affairs can be properly managed by a trusted individual of your choosing, in the event you become unable to handle such matters on your own.

Not all Powers of Attorney (POAs) are created equal, and understanding the difference between a Continuing Power of Attorney for Property and a Springing Power of Attorney for Property can make a significant difference in how and when your attorney can act on your behalf.

What Is a Continuing Power of Attorney for Property?

A Continuing Power of Attorney for Property (sometimes called an “enduring” POA) takes effect as soon as it is signed.

This means your chosen attorney can immediately begin managing your finances and property, even while you are still mentally capable. Most importantly, this type of POA continues to be valid if you later become incapable of managing your own property.

Advantages

• Effective immediately: Continuity of management: There’s no need for medical or legal assessments to “activate” the POA if you lose capacity.

• Reduced risk of delay: Your affairs can be handled without interruption as there is no need to obtain a capacity assessment in order to determine whether you have lost capacity.

Disadvantages

• Because it takes effect immediately, it’s essential to choose an attorney you completely trust, as they can act on your behalf immediately after signing.

  
  

What Is a Springing Power of Attorney for Property?

A Springing Power of Attorney for Property only takes effect when a specific event occurs, most commonly, when you are declared mentally incapable of managing your own property.

This means your attorney cannot act until that condition has been met, which is confirmed through a medical capacity assessment.

Advantages

• Protection while you still have capacity: You retain full control over your financial affairs until incapacity is officially determined.

• Peace of mind: Some people prefer knowing their attorney cannot act until a specific event occurs.

Disadvantages

• Delay in activation: If you suddenly lose capacity, there can be a delay while obtaining the required proof of incapacity.

• Potential disputes: Family members or institutions may disagree about whether the “trigger” condition has been met.

  
  

Final Thoughts

Whether you choose a Continuing or Springing Power of Attorney for Property, the goal is the same - to protect your financial wellbeing and ensure your affairs are managed according to your wishes. By getting proper legal advice and planning, you can have peace of mind knowing that your property is in trusted hands.

If you would like to discuss Powers of Attorney or any other estate-related matter in Ontario, please reach out to us at McDonald, Simon, Stewart & Reidy LLP. Our team is here to provide expert legal guidance and help you understand your rights and obligations. Don’t hesitate to contact us for a consultation - we’re ready to assist you!

Please reach out to us at info@mcdonaldsimon.com or call us at 519-273-2734.

Disclaimer: This blog should not be construed as legal advice. Each individual circumstance has nuances that need to be considered by a licensed legal professional and there is no one-size-fits-all answer in the law. If you require legal advice, please contact someone who is licensed with the Law Society of Ontario and is properly insured to provide legal services or practice law.