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5650bc_0a687bb49f564b38a3f91ab44cfc1670~mv2 (1)
13 May | 1min of reading

Power of Attorney vs. Protection Mandate: What’s the Difference?

Last update :26 September

The main differences

General power of attorney

  • It enables a trusted person to look after the principal’s affairs while he or she is still capable of managing their own affairs.

  • It is used only to manage material assets and takes effect the moment it is signed.

  • It may be revoked or terminated in the event of incapacity or death (of the principal).

Protection Mandate (formerly called mandate in case of incapacity):

  • It allows you to designate in advance one or two trusted persons (mandataries) to take care of the principal and manage his or her property in the event of incapacity.

  • One mandatary may be responsible for personal well-being (medical care, accommodation, etc.), and another (or the same) may be responsible for the administration of the principal’s property (financial management, property sales, etc.).

  • It takes effect only if the principal is declared incapacitated, following a legal procedure called homologation.

 

Activation

General power of attorney

  • Takes effect upon signature. Valid as long as the principal is capable but becomes invalid if the principal is deemed incapacitated.

Protection mandate

  • Comes into effect only if the principal becomes incapable of caring for himself or managing his affairs.

  • To come into effect, the principal must be homologated by a court, after professionals have attested to the incapacity (doctor + social worker or psychologist).

 

3 good reasons to get a protection mandate

  1. Stay in control: You choose who will make decisions for you. Without a power of attorney, the court will appoint someone, and it may not be the person you choose.

  2. Respecting your wishes: You can include your clear preferences regarding your health, housing, finances, etc. in the mandate.

  3. Protect your loved ones: A well-drafted mandate avoids lengthy and stressful legal proceedings for your loved ones at a time when they need simplicity the most.

 

How do I obtain a protection mandate in Quebec?

Option 1: Notarial mandate

  • Drawn up by a notary.

  • Registered with the Chambre des notaires.

  • Secure and difficult to contest.

Option 2 : The witness mandate

  • Drafted by you or with a lawyer.

  • Signed before two witnesses not named in the document.

Conclusion : better safe than sorry

Preparing a protection mandate ensures that your wishes will be respected and that your loved ones will be supported, without additional steps during a period of your life when everything is already becoming more difficult.

To find out more, click here


About the author

Patrick Racicot

Patrick Racicot

Patrick is a portfolio manager at AltaFina. He holds the CFA® charter, an MBA specializing in investment management from Concordia University, and a Bachelor of Electrical Engineering from McGill University. Before becoming an advisor, he worked at one of Canada's largest corporate pension plans, where he contributed to investment selection and the construction of a portfolio exceeding 18 billion Canadian dollars. A father of two young children, he plays competitive volleyball, loves reading science fiction, and has been listening to podcasts on entrepreneurship, finance, and personal development for nearly 20 years.

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