FP Canada Qualified Associate Financial Planner (QAFP) Practice Test

A power of attorney for property lets you appoint someone you trust to handle your financial affairs if you can’t manage them yourself. It’s used to keep your money matters running smoothly when illness, injury, or another incapacity prevents you from acting. The appointed person (the agent) can handle tasks like paying bills, managing bank accounts, handling investments, and filing tax returns, depending on how you define their authority.

A key feature is whether the arrangement is durable or not. A durable power of attorney stays in effect after you become incapacitated, which is essential for continuing financial management. The document also specifies when it activates—often when a physician certifies incapacity or it can be effective immediately if you choose. It’s separate from decisions about medical care (that’s a medical or personal care power of attorney) and from transferring ownership upon death (that would be handled by a will or other estate planning tools). It also doesn’t create limits on withdrawals by itself; rather, it grants the agent authority to act on your behalf within the scope you specify.