P.E.I.’s New Powers of Attorney and Personal Directives Act: 6 FAQs
Published:
November 10, 2025
Author(s):
As of November 1, 2025, PEI has a new Powers of Attorney and Personal Directives Act. The Act modernizes the rules and framework governing powers of attorney in P.E.I. and introduces personal directives – an important new tool for your estate plan. To hep you understand the new Act, here are the answers to six frequently asked questions.
1. What is a Power of Attorney?
A Power of Attorney is a document that allows you to appoint one or more persons to make financial decisions on your behalf, usually to help you plan for a situation where you become mentally incapable of making these decisions for yourself. Under the Act, the person who makes the Power of Attorney is called the “Principal” and a person appointed to act on their behalf is called an “Attorney”.
2. What are the key changes for Powers of Attorney in P.E.I.?
Before the new Act was introduced, P.E.I. already had legislation allowing you to create a Power of Attorney (the new Act repealed this legislation, called the Powers of Attorney Act). However, the new Act includes a more expansive framework for Powers of Attorney and includes new requirements for Powers of Attorney. The new provisions in the Act include:
- The duties of an Attorney.
- What instructions the Principal can include in their Power of Attorney.
- Restrictions on who can act as an Attorney.
- Who can request an accounting from an Attorney.
- How and when an Attorney can be compensated by the Principal for acting as their Attorney.
- When a Power of Attorney is terminated.
3. I already have a Power of Attorney; do I need a new one?
If you have already signed a Power of Attorney under the old P.E.I. legislation, it is still valid and you do not need to create a new one. However, given the significant changes introduced under the new Act, now may be a good time to review your Power of Attorney to be sure it still reflects your wishes and is appropriate for your circumstances.
4. I am acting as an Attorney on behalf of someone else; what do I need to know?
The new requirements for an Attorney introduced under the new Act apply regardless of whether the Principal signed the Power of Attorney before or after the new Act took effect. If you are already acting as someone’s Attorney, it is a good idea to familiarize yourself with the new provisions in the Act, especially those related to an Attorney’s duties.
5. What is a Personal Directive?
The new Act introduces the Personal Directive to P.E.I.. Like a Power of Attorney, a Personal Directive is a document that allows you to appoint someone to make decisions on your behalf if you are mentally incapable of making them yourself. However, where a Power of Attorney applies to financial matters, a Personal Directive applies to personal matters. Under the new Act, the person who makes the Personal Directive is called the “Principal” and a person appointed to act on their behalf is called an “Agent”.
Generally, personal matters are any matters related to your life that are not financial matters or health care or treatment decisions. Therefore, your Personal Directive will apply to decisions regarding:
- With whom you socialize.
- Your basic needs, including nutrition, clothing, and personal care.
- The social activities in which you participate.
- The training in which you participate and your employment.
Creating a Personal Directive offers you the opportunity to decide who will make these important decisions on your behalf if you are incapable of making them yourself.
6. What about Health Care Directives?
If you have already done some estate planning in P.E.I., you may have a Health Care Directive. A Health Care Directive is a document that allows you to appoint a person (called a “Proxy”) to make health care and treatment decisions on your behalf if you are mentally incapable of doing so. Health Care Directives are governed by legislation called the Consent to Treatment and Health Care Directives Act and are not impacted by the new Act.
Please contact your McInnes Cooper lawyer or any member of our Estates & Trusts Team @ McInnes Cooper to discuss your estate plan.
McInnes Cooper has prepared this document for information only; it is not intended to be legal advice. You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.
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