Continuing power of attorney permits the handling of another person’s affairs

Who will run your errands if your functional capability or the functional capability of a loved one decreases temporarily or permanently, and how? The continuing power of attorney allows you to make the decision beforehand.

Representation based on a continuing power of attorney enables you to prepare yourself for permanent incapacity caused by an illness, for example.

The continuing power of attorney specifies the matters to which the power of attorney applies and designates the person the principal wishes to authorise as their representative.

Compared to legal guardianship, representation based on continuing power of attorney is a more flexible way of managing another person’s affairs. It does not directly negate the person’s legal capacity. After the power of attorney has been validated, the principal can still run the errands they are capable of.

Which authorisations can be granted?

The principal specifies the matters which the authorisation applies to in the power of attorney, meaning the actions the authorised representative is allowed to take under the power of attorney.

The authorisation can be a very general permission given to allow the representative to take care of the principal’s financial or personal matters. The authorisation can also be limited to only apply to specific legal acts, matters or property. The authorisation can apply to all financial matters (such as banking matters) or all personal matters (such as matters related healthcare). A general authorisation permits the authorised representative to manage all of the principal’s affairs.

However, the authorised representative is not permitted to sell or pledge real estate or donate the principal’s property unless these legal acts are separately agreed in the power of attorney. If a real estate sale has not been authorised by the power of attorney, the sale requires the appointment of a legal guardian.

Who can be authorised?

The principal chooses the authorised representative, who can be a family member, friend or an independent attorney. It’s advisable to discuss the power of attorney beforehand with the potential representative and ensure that they are willing to take up the task.

The principal can also designate a substitute representative who will perform the task if the authorised representative has temporarily been prevented from their duties.

How do I authorise a representative?

It’s advisable to draw up the power of attorney in advance, as the person drawing up the power of attorney has to have legal competence and they need to understand the power of attorney’s meaning.

In matters related to continuing power of attorney, you may contact the legal services of your local OP cooperative bank, who will help you draw up a continuing power of attorney suited to your circumstances.