Power of Attorney Fiduciary Duties in Yukon

Being named as someone's attorney in an enduring power of attorney isn't an honour — it's a legal obligation. The moment you start acting under a Yukon EPA, you take on fiduciary duties that are enforceable by the Supreme Court and monitored by the Public Guardian and Trustee. Misunderstanding those duties doesn't just create family conflict; it can result in personal liability, court-ordered removal, and repayment of misused funds from your own pocket.

The Standard of Care Under Yukon Law

An attorney under the Enduring Power of Attorney Act must act honestly, in good faith, and exercise the care, diligence, and skill that a reasonably prudent person would use in managing their own affairs. That last part is the practical test: you're held to the standard of a careful person handling their own money, not the standard of a professional financial manager.

This doesn't mean you need investment expertise or accounting credentials. It means you can't be reckless, negligent, or self-serving. You need to make reasonable decisions, document them, and be able to explain why you chose a particular course of action if questioned later.

The fiduciary obligation also requires you to consult with the donor to determine their current wishes, beliefs, and values — to the extent that's possible. If the donor still has some degree of awareness, their preferences guide your decisions. If their wishes genuinely can't be determined (for example, in advanced dementia), you must act strictly in their best interests. "Best interests" under Yukon law is an objective standard, not what you personally think is best.

Mandatory Asset Segregation

One of the most commonly violated fiduciary duties — and the fastest way to attract scrutiny from the Public Guardian and Trustee — is commingling the donor's money with your own. Yukon law requires strict financial separation between the attorney's personal assets and the donor's assets.

In practical terms, this means you must open dedicated bank accounts under your name "as attorney for [Donor's Name]" and route all of the donor's income, pension payments, and investment proceeds into those accounts. You pay the donor's bills, taxes, and living expenses from those accounts — never from your personal chequing account, even if you plan to reimburse yourself later.

You cannot use the donor's credit cards for personal purchases. You cannot borrow from the donor's accounts. You cannot deposit your own income into the donor's accounts to "simplify" things. Every dollar must be traceable to either the donor's financial activity or yours, with no overlap.

If you hold a joint bank account with the donor that predates the EPA — a common arrangement between spouses — you should discuss this with a lawyer before the EPA activates. Joint accounts create ambiguity about whose money is being spent, which is exactly the kind of confusion that triggers PGT investigations.

Record-Keeping Requirements

The Adult Protection and Decision Making Act requires attorneys to maintain exhaustive accounting records. This includes receipts for every purchase made on the donor's behalf, invoices for services paid, bank statements, investment transaction confirmations, and reconciliation records showing how the donor's funds were used.

The donor has the right to request these records at any time — and if the donor lacks capacity to make that request personally, any interested family member or the Public Guardian and Trustee can demand an accounting. Failure to produce records on request is grounds for a court application to remove you as attorney.

A practical approach: maintain a simple ledger (spreadsheet or notebook) with dated entries for every transaction. Keep a file of physical receipts organized by month. Download and save bank statements monthly rather than relying on online access that might change. If you manage investments, keep confirmation slips for every trade or rebalancing decision.

The record-keeping obligation continues as long as you act as attorney. When your authority ends — through revocation, the donor's death, or a court order — you must be prepared to provide a complete accounting to the estate executor, beneficiaries, or the court.

Conflict of Interest and Self-Dealing

You cannot enter into any transaction where your personal interests conflict with the donor's. The most obvious violation is using the donor's money to benefit yourself — paying your own mortgage, funding your business, or buying assets from the donor at below-market prices.

But conflict of interest extends further than direct self-dealing. If you're named as both attorney and beneficiary under the donor's will, decisions about preserving versus spending the donor's assets create an inherent tension. Spending more on the donor's care reduces your eventual inheritance. Courts are alert to this dynamic, and attorneys in this position should err heavily toward the donor's immediate comfort and wellbeing.

You also cannot make gifts from the donor's assets — even to family members — unless the EPA explicitly authorizes gift-giving and specifies the circumstances. Birthday gifts to grandchildren, charitable donations the donor historically made, and similar gestures need to be specifically permitted in the EPA document. Without that authorization, even well-intentioned generosity is a breach of fiduciary duty.

Similarly, you cannot alter the donor's estate plan. You cannot change beneficiary designations on RRSPs, life insurance policies, or pension plans. You cannot create, modify, or revoke the donor's will. Your authority is limited to managing the donor's financial affairs during their lifetime, not reshaping the distribution of their estate.

PGT Oversight and Court Accountability

The Public Guardian and Trustee in the Yukon has standing to investigate any concerns about an attorney's conduct. If a family member, healthcare provider, or financial institution reports suspected financial abuse or mismanagement, the PGT can request a full accounting, inspect records, and — if the evidence warrants — apply to the Supreme Court to have the attorney removed.

Under the Adult Protection and Decision Making Act, any person can report suspected financial abuse, psychological abuse, or neglect of a vulnerable adult to the Seniors Services / Adult Protection Office. If the adult is unable to seek assistance themselves, the designated agency is legally required to investigate.

Court removal of an attorney is a serious consequence. If the Supreme Court finds that an attorney acted in conflict of interest, mismanaged funds, or failed to maintain adequate records, the court can suspend the EPA, remove the attorney, order repayment of misused funds, and appoint the PGT as temporary administrator. The legal costs of this proceeding are typically charged against the donor's estate — further depleting the resources the attorney was supposed to protect.

The Bottom Line for Appointed Attorneys

Serving as an attorney under a Yukon EPA means treating someone else's money with more care than you'd treat your own. Keep everything separate. Document everything. Don't use the donor's resources for any purpose that benefits you. When in doubt about whether a decision serves the donor's interests, get independent advice before acting.

The Yukon Power of Attorney Kit includes a fiduciary record-keeping log and asset inventory template designed specifically for Yukon attorneys — practical tools for meeting these obligations without hiring an accountant from day one.

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