Power of attorney for an estate – when is it needed and who should sign it?

Short answer: An estate is normally represented jointly by the heirs. If one person is to manage bank contacts, government matters, sales, or other practical issues on behalf of the estate, the other heirs can grant a power of attorney.

Who represents an estate?

Upon a person's death, their assets and debts become an estate. As a general rule, the heirs manage the estate jointly until it has been distributed.

When is a power of attorney practical?

• banking and insurance
• payment of ongoing bills
• government contacts
• subscriptions and agreements
• practical sales matters

Limited or broad power of attorney?

The power of attorney should be adapted to the assignment. If the authorized representative is only to handle banking matters, it is often better to describe exactly that rather than granting unlimited authority. Special formal requirements apply to the sale of real estate.

What should the power of attorney contain?

• the deceased's name and personal identity number
• identification of the estate
• grantor and authorized representative
• exact scope of authority
• limitations and validity period
• signatures

A power of attorney does not replace an estate inventory

Banks and government agencies may still require a registered estate inventory, death certificate, or other documents. The power of attorney indicates whom the heirs have authorized to act.

Common mistakes

• not all relevant heirs provide a power of attorney
• the authority is unclear
• the power of attorney lacks a connection to the specific estate
• the bank's own requirements are not checked

See the Template Store's power of attorney template for an estate.

FAQ

Can one heir sign alone?

As a general rule, the heirs manage the estate jointly, so a single heir often needs a power of attorney from the others.

Can the power of attorney be revoked?

Yes. The revocation should be handled both with the authorized representative and the relevant counterparties.

This article provides general information and does not replace legal advice.