What is a Power of Attorney?

A future power of attorney is a legal document that allows you to appoint a person, or more, in advance to take care of your financial and personal affairs should you become unable to do so yourself in the future. This form of power of attorney is especially valuable in giving you control over who will represent you, instead of the district court appointing a trustee or trustee.

Formal requirements for establishing a power of attorney

• Decision-making capacity and age: You must be at least 18 years old and mentally competent when you sign the power of attorney.
• Writing and witnesses: The power of attorney must be in writing and witnessed by two people who are not close relatives.
• Clear and clear: The document must clearly state that it is a power of attorney for the future, who is the power of attorney, which matters are covered, and any conditions.

A power of attorney for the future comes into effect when you lose your decision-making capacity, which is assessed by the person you appointed in the power of attorney. You can also specify that a court shall decide when the power of attorney shall take effect.

What is Relative Authorization?

Since 1 July 2017, there are statutory rules for next-of-kin authorization. This authorization gives close relatives the right to represent a person who, due to permanent illness or the like, can no longer take care of their financial affairs, without the need for a power of attorney.

What measures are covered by relative authorization?

Relatives can, for example, pay bills, apply for grants, and arrange home care. However, more complicated matters such as buying or selling real estate, giving away gifts or acting in legal proceedings are not covered.

Hierarchy and authority

The right is hierarchically arranged, which means that it first and foremost accrues to the husband, wife or common-law partner. If these are not available or waived, the authority passes to children, then grandchildren, parents, siblings and so on.

Common Mistakes and Legal Disputes

A common mistake when drawing up a future power of attorney is not being specific enough in the power of attorney. If the power of attorney is not clear enough, disputes may arise about what the power of attorney can and cannot do. In the worst case, this can lead to legal proceedings, which is both time-consuming and costly.

Another common situation is that people establish a power of attorney for the future when they have already started to show signs of reduced decision-making capacity, for example in the case of dementia. This can lead to the future power of attorney being later declared invalid, because the person giving the power of attorney was not considered to have sufficient decision-making capacity when it was created.

Future power of attorney vs. Good man

An important difference between a power of attorney for the future and a good man is that the power of attorney for the future gives you the opportunity to decide for yourself who will manage your affairs. With a good man, it is the district court that appoints a person to represent you, and that process can sometimes mean that you do not get the person you would have chosen yourself.

It is also important to understand that a power of attorney for the future does not apply to health and welfare matters. For these types of decisions, other solutions, such as relative authorization or good man, must be used.

Legal Information and Important Aspects to Consider

The Future Powers of Attorney Act (2017:310) governs how these documents must be designed and used. This law is designed to protect the principal's interests and ensure that the principal acts in accordance with the principal's will.

To ensure that your future power of attorney meets all legal requirements, it is wise to hire a lawyer when drawing it up. A properly drawn up power of attorney can prevent future disputes and ensure that your wishes are respected.

Summary

Power of attorney and next of kin are two important legal tools that help ensure that a person's interests are taken care of in the event of incapacity to make their own decisions. While the future power of attorney gives you the opportunity to choose your representative yourself, relative authorization allows relatives to handle simpler financial matters without a formal power of attorney. However, it is important that these tools are established correctly and in good time, to avoid future complications.