Understanding a Power of Attorney in Nova Scotia

A Power of Attorney is a legal document that authorizes another person — called your attorney — to manage your financial and legal affairs on your behalf. In Nova Scotia, Powers of Attorney are governed by the Powers of Attorney Act. It is one of the most important documents you can have, yet it is often the last one people think about — usually because it only becomes necessary when something has already gone wrong.

What Does a Power of Attorney Cover?

A Power of Attorney covers financial and legal matters. Your attorney can be authorized to:

• Manage your bank accounts and investments
• Pay your bills and living expenses
• File your tax returns
• Buy, sell, or mortgage real property on your behalf
• Operate your business or manage contracts
• Deal with government agencies such as CRA and Service Canada

A Power of Attorney does not cover health care or personal decisions. Those are addressed in a separate document called a Personal Directive.

Enduring vs. Non-Enduring Powers of Attorney

This is the most important distinction. A non-enduring Power of Attorney automatically becomes invalid if you lose mental capacity — precisely when you would need it most. An enduring Power of Attorney, by contrast, continues in full force even if you become mentally incapacitated. In Nova Scotia, a Power of Attorney must contain specific wording to be enduring.

At Worry Free Will & Notary, all Powers of Attorney are drafted as enduring by default. In rare circumstances where a specific or non-enduring Power of Attorney is more appropriate — for example, to authorize a one-time transaction — we can accommodate that as well.

When Does a Power of Attorney Take Effect?

A Power of Attorney can take effect immediately upon signing, or it can be a springing Power of Attorney that only activates upon a triggering event — such as a doctor certifying that you have lost capacity. Our default is an immediate Power of Attorney: it is simpler and avoids delays in a crisis. However, if you prefer the additional control of a springing arrangement, we can accommodate that at no extra cost. We will discuss both options with you at your appointment.

Who Should You Appoint as Your Attorney?

Your attorney does not need to be a lawyer — the word simply refers to the person you are authorizing to act for you. Most people appoint a spouse, adult child, or close friend. The qualities to look for are trustworthiness, organizational ability, and the willingness to act. Your attorney has a legal duty to act in your best interests and must keep records of all transactions.

You can appoint more than one attorney and specify whether they must act jointly (both must agree) or severally (either can act alone). You can also name a substitute attorney in case your first choice is unable to act.

Why You Need One Before You Need One

This is the critical point most people miss. Once you lose mental capacity, it is too late to sign a Power of Attorney. A document signed without capacity is invalid. At that point, your family would need to apply to the court for a guardianship or trusteeship order — a process that is slow, expensive, and public.

A stroke, a serious accident, or a sudden illness can remove your capacity without warning. The Power of Attorney you sign today is the one that protects your family if that happens tomorrow.

Does a Power of Attorney Need to Be Notarized?

In Nova Scotia, a Power of Attorney must be signed before a witness. It does not legally require a notary to be valid, but having it prepared and executed before a Notary Public ensures the document is properly drafted, correctly worded as enduring, and executed in a way that third parties — banks, registries, and government agencies — will accept without question. A poorly worded or improperly executed document may be refused by a bank even if it is technically valid.

What Happens to a Power of Attorney After Death?

A Power of Attorney automatically terminates on your death. After death, your executor takes over under the authority of your Will. This is why a Will, Power of Attorney, and Personal Directive work together as a complete estate plan — the Power of Attorney protects you during life, and the Will governs your estate after death.