Public Trustee Nova Scotia: What Happens When No Power of Attorney Exists

Most Nova Scotians first hear about the Public Trustee when it's already too late — a parent has lost capacity, no power of attorney was ever signed, and the bank has frozen every account. At that point the family learns that a government office they'd never considered now has the legal authority to manage their loved one's entire financial life.

What the Public Trustee Actually Does

The Office of the Public Trustee in Nova Scotia serves two distinct roles, and confusing them causes real problems.

Incapacity management. When an adult loses the mental capacity to manage finances and no enduring power of attorney exists, the Public Trustee can step in as a last-resort financial manager. This authority comes through the Adult Capacity and Decision-making Act (ACDMA), either by court appointment or emergency interim authority. The Public Trustee manages banking, pays bills, handles government benefits, and makes financial decisions — but only financial ones. Personal care decisions (medical consent, living arrangements) go to the nearest qualifying relative under the statutory hierarchy in the Personal Directives Act, or to a court-appointed representative.

Small estate administration. Under Section 22A of the Public Trustee Act, the Public Trustee can administer intestate estates valued under $25,000 — but this only applies after death and only when no executor or administrator has been appointed. This is a completely separate function from incapacity management.

How the Public Trustee Gets Involved During Incapacity

The typical path starts when a hospital social worker, care facility, or bank contacts the Public Trustee's office because an incapacitated adult has no legal representative. Here's what follows:

1. Referral. A healthcare provider, financial institution, or family member contacts the Office of the Public Trustee to report that an adult appears to lack capacity and has no enduring power of attorney or personal directive naming a delegate.

2. Investigation. The Public Trustee's staff reviews the referral, contacts the adult's physicians, and may arrange a formal capacity assessment. Under ACDMA, assessments typically cost between $500 and $700 when covering both personal care and financial domains, though the provincial government covers up to $500 for a single-domain assessment.

3. Interim authority or court order. In urgent situations, the Public Trustee can exercise emergency powers. For ongoing management, the Supreme Court of Nova Scotia issues a representation order under the ACDMA granting the Public Trustee specific authority — never a blanket "guardianship" as existed under the old Incompetent Persons Act.

4. Ongoing management. The Public Trustee manages the adult's finances, files annual representation plans with the court, and accounts for every dollar spent. Fees are charged against the incapacitated adult's own assets.

What It Costs

The Public Trustee charges management fees against the incapacitated person's estate. These include:

• An annual management fee (typically a percentage of the assets under management)
• Transaction fees for real estate sales, investment decisions, and legal proceedings
• Court filing costs for the initial representation order application
• The capacity assessment fee ($500–$700 combined), offset by any government subsidy

For a family that could have spent $400–$1,000 to set up a private enduring power of attorney with a lawyer, the total cost of Public Trustee involvement — including court fees, assessment fees, and ongoing management charges — can easily exceed several thousand dollars over just a few years.

The Family's Role Shrinks Dramatically

When the Public Trustee manages an adult's finances, family members lose the ability to make day-to-day financial decisions. You can't move money between accounts, sell the family home to fund care, or access funds for personal items — without requesting approval from the Public Trustee. Every financial decision passes through a government process with its own timeline.

That doesn't mean the family is shut out entirely. The court order defines the scope of the Public Trustee's authority, and family members can apply to be appointed as co-representatives or to take over representation entirely if they can demonstrate capability. But that process requires a court application, additional legal fees, and more waiting.

How to Avoid Public Trustee Involvement

The simplest prevention is setting up two documents while the adult still has capacity:

• Enduring Power of Attorney — names a trusted person to manage finances, including banking, property sales, and tax filings. The "enduring" clause keeps it valid after incapacity. Requires two independent witnesses under the Powers of Attorney Act (2022 amendments).
• Personal Directive — names a delegate for healthcare and personal care decisions. Requires one witness.

Both documents must be signed while the adult understands what they're signing. Once a physician or qualified assessor determines someone lacks the mental capacity to understand these documents and their consequences, the window closes. The only remaining option is a court-ordered representation order — and if no family member is willing or able to serve, the Public Trustee becomes the default.

If you're at the stage where a parent or spouse still recognizes you and can carry a conversation about their finances, the window is still open. The Nova Scotia Power of Attorney Kit walks through both documents step by step, including the witness requirements that changed in 2022 and the execution rules that trip up most families.

When the Public Trustee Is the Right Choice

Not every situation calls for a family member to serve as attorney. The Public Trustee can be the better option when:

• The incapacitated adult has no family in the province (or in Canada)
• Family members have conflicts of interest or a history of financial exploitation
• The estate involves complex assets that require professional management
• No family member is willing to take on the legal liability of serving as attorney

In these cases, the Public Trustee provides an impartial, accountable manager with court oversight — a genuine safeguard rather than a failure of planning.

Related Reading

• What happens if no one has power of attorney in Nova Scotia
• ACDMA and representation orders in Nova Scotia
• Dementia and power of attorney in Nova Scotia

See more Nova Scotia guides →