Powers of Attorney and Joint accounts

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Definition: POA

A Power of Attorney (POA) for Property is a legal document that provides an Attorney (the person named in the document) authority over all or some of the grantor’s property (including finances).

POA allows the Attorney to manage the property on grantor’s behalf for grantor’s benefit.

POA can be “specific” or “limited,” where the Attorney is authorized for a limited task (for example, sell a house) or for a specific period (for example, for a period that you – the grantor – are expected to be out of the country).

The POA can be effective upon execution or it can start on a specific date or occurrence provided for in the document.

The requirements for a valid Power of Attorney for Property differ from province to province (and over time). Care must be taken to ensure that all formalities with respect to the creation of the document and the relationship have been met in the particular jurisdiction (province, territory or foreign jurisdiction).

Definition: Attorney

An Attorney for Property is a fiduciary, who, regardless of the form of Power of Attorney, is obligated to act as a fiduciary to the grantor of the Power of Attorney and exercises his or her duties diligently, honestly and with integrity for the benefit of the person (and therefore, unless otherwise expressly provided for in the document creating the power, not for the benefit of the Attorney himself or herself).

Types of POA

Enduring or Continuing POA	POA for Personal Care
An enduring or continuing Power of expressly provides that the Attorney shall continue to act for the grantor if the grantor becomes mentally incapable of managing their property (including your finances). Depending on the terms of the document, an enduring or continuing Power of Attorney can take effect as soon as it is signed (such that it is effective while the grantor is capable of managing their property), or it may require some additional event (such as, losing capacity to manage property) to occur. In such case a medical note, provided by a physician, may be required proving that the document is now in effect. Important: In the absence of language in the document that the Attorney is to continue to act should the grantor become incapable of managing their property, the relationship between the grantor and the Attorney is terminated if the grantor becomes mentally incapable of managing their property.	A Power of Attorney for Personal Care identifies and provides authority to the person you select to make personal care decisions on your behalf upon you becoming incapable of making such determinations on your own. The Attorney for Personal Care does not have to be the same as the Attorney for Property. Important: Home Bank and Oaken Financial do not take instructions from Attorneys for Personal Care.

Enduring or Continuing POA

POA for Personal Care

An enduring or continuing Power of expressly provides that the Attorney shall continue to act for the grantor if the grantor becomes mentally incapable of managing their property (including your finances).

Depending on the terms of the document, an enduring or continuing Power of Attorney can take effect as soon as it is signed (such that it is effective while the grantor is capable of managing their property), or it may require some additional event (such as, losing capacity to manage property) to occur.

In such case a medical note, provided by a physician, may be required proving that the document is now in effect.

Important: In the absence of language in the document that the Attorney is to continue to act should the grantor become incapable of managing their property, the relationship between the grantor and the Attorney is terminated if the grantor becomes mentally incapable of managing their property.

A Power of Attorney for Personal Care identifies and provides authority to the person you select to make personal care decisions on your behalf upon you becoming incapable of making such determinations on your own.

The Attorney for Personal Care does not have to be the same as the Attorney for Property.

Important: Home Bank and Oaken Financial do not take instructions from Attorneys for Personal Care.

Home Bank & Oaken Financial Requirements

Overview

Home Bank & Oaken Financial will accept a Power of Attorney for Property (POA) that meets the following requirements:

It is for property. We do not take instructions from Attorneys for Personal Care.
It meets the provincial, territorial or foreign requirements of the location where it was signed, including being signed by the grantor in front of the requisite number of qualifying witnesses.
It is either the original document, or a notarized or a certified true copy of the original. A photocopy is not accepted.
If the authority is granted only as a result of the incapacity of the grantor, proof of incapacity is required by the document (i.e., one or more medical opinions).
Where more than one Attorney is named, all the required Attorneys must sign all the required documentation.
If an alternate Attorney wishes to act, sufficient proof should be provided for the original Attorney’s inability to act.

Attorney(s) Requirements

Do’s and Don’ts

What can the attorney(s) do?

What the attorney(s) cannot do?

Transact business respecting the grantor’s property in all areas specified by the grantor.
Potentially act as the replacement trustee on an “in-trust for” account where the grantor of the POA was the original trustee, however, prior to doing so additional steps may be required.

Link their banking info to a client’s account.
Open GIC in joint names (POA and Grantor). View POA grid for additional scenarios.
Transfer funds into joint name from the grantor to grantor and POA.
Change or assign designations on registered plans (regardless of what is in the documentation).
Act as POA for the grantor in respect of his or her fiduciary role as an estate trustee, executor or trustee of a formal inter-vivo trust without further information and confirmation from Oaken Financial.
Transfer funds into their account (even for stated “probate planning purposes”).
Undertake transactions for a corporate entity owned by a grantor of a POA – these must be undertaken by directors or proper signing officers of the corporate entity and require different documentation providing for such directors and signing officers drafted by counsel for the corporate entity.

More Than One Attorney (Authorized Signing Authorities and the Provision of Instructions)

Type	Requirements
Joint or no designation	All Attorneys must execute all documents and provide all the instructions together. No one (or majority) is allowed to act without consent from all of the other Attorneys. All Attorneys must complete any required know your client documentation.
Designated jointly and severally	The Attorneys may make decisions together or act separately, subject to any additional restrictions in the documentation. All Attorneys must complete any required know your client documentation. Home Trust or Oaken Financial will be under no obligation to contact any other Attorney in the face of an instruction from just one Attorney.
Designated requires a majority	A majority must sign all the documentation. All Attorneys must complete any required know your client documentation, subject to any additional restrictions in the documentation (such as, a particular person being required to be in the majority, like a spouse). Home Trust or Oaken Financial will be under no obligation to contact any other Attorney in the face of an instruction from the majority.

Documentation from Attorneys

In every case, the Attorney(s) must provide the following:

A completed Authorized Signatory Form
A completed Investment Application or Letter of instruction (signed by the required signatories)
Proper identification (as per our processes)

Application requirements

Investment application should be in the name of the registered owner.
Investment cheque should be from the client.

Unacceptable POAs

Home Bank and Oaken Financial will not accept any POA that:

Is unclear.
Is for personal care only.
Is from another financial institution.
Has been superseded by another document.
Requires Home Bank or Oaken Financial to monitor the Attorney's activity(ies).

Power of Attorney Issues and Questions

If your activities related to power of attorney do not meet Home Bank’s requirements, we may refuse to carry out your instructions and advise you of our reasons for doing so. If you disagree with our reasons or have additional questions, you may refer to our Complaint Handling Procedures on the Home Bank website.