In most cases, no. A Power of Attorney for Property in Ontario cannot take money for themselves unless the document specifically allows it or the law permits it in very limited circumstances.
This issue often arises when family members begin to question financial activity. Concerns about unexplained withdrawals, gifts, or changes in spending can quickly lead to disputes.
Understanding what a Power of Attorney is allowed to do is critical in determining whether there has been misuse.
What Authority Does a Power of Attorney Have?
A Power of Attorney for Property gives someone authority to manage another person’s financial affairs.
This can include:
• Managing bank accounts and investments
• Paying bills and expenses
• Buying or selling property
• Handling tax matters
That authority is broad, but it is not unlimited. It must be exercised in the best interests of the person who granted the Power of Attorney.
The Core Legal Duty
A Power of Attorney is a fiduciary. That means they must act honestly, in good faith, and solely for the benefit of the person whose finances they are managing.
This is a strict legal obligation.
They cannot use the role for personal benefit unless there is clear legal authority to do so.
When Can Money Be Taken?
There are limited situations where a Power of Attorney may receive money.
These include:
• Reimbursement for reasonable expenses incurred while acting
• Compensation, if the document allows it or the law provides for it
• Gifts or transfers that are specifically authorized and consistent with prior intentions
Even in these situations, the actions must be reasonable and properly documented.
When It Becomes a Problem
Concerns typically arise when there is a lack of transparency or unexpected financial activity.
Red flags may include:
• Large or unexplained withdrawals
• Transfers to the attorney or people connected to them
• Changes in spending patterns
• Lack of records or refusal to provide information
• Isolation of the grantor from other family members
These situations do not automatically prove wrongdoing, but they often justify further investigation.
The Importance of Record Keeping
A Power of Attorney is required to keep proper accounts.
This includes maintaining records of:
• All money received and spent
• Supporting documentation for transactions
• Current account balances
Failure to keep records is often one of the first signs that something may be wrong.
What Can Be Done If There Are Concerns?
If there are concerns about misuse, there are legal options available in Ontario.
These may include:
• Requesting an accounting of financial activity
• Applying to court for a passing of accounts
• Seeking an order to require disclosure of records
• Applying for guardianship to replace the attorney
• In serious cases, pursuing recovery of improperly taken funds
The appropriate step depends on the specific circumstances and the level of risk.
Relationship to Guardianship
When a Power of Attorney is no longer acting appropriately, guardianship may become necessary.
Guardianship allows the court to appoint someone else to take control of financial decisions and restore oversight.
This is often the next step when trust has broken down or misuse is suspected.
A Practical Perspective
Concerns about a Power of Attorney taking money are often deeply personal. These situations involve trust, vulnerability, and sometimes long standing family relationships.
Ontario law provides clear rules, but each situation must be assessed carefully. Not every transaction is improper, and not every concern leads to legal action.
At the same time, when misuse does occur, early action is important to protect the individual and preserve their assets.