With a power of attorney, you plan and decide how and by whom your affairs will be managed when you are no longer able to do so, for example because of failing health. A power of attorney is a power of attorney to your guardian, who is your trustee. He or she will look after your interests when you are unable to do so.
For example, you can influence who pays your bills, manages your finances or takes charge of your healthcare. Your guardian is usually someone close to you, such as your adult child or spouse.
You can set up a power of attorney so that the attorney effectively takes care of all your financial affairs in general, or it can be limited to certain specific matters, such as paying bills.
Issues to be covered by the declaration of interests
With a power of attorney, you can also order things that the guardian would not have the right to do without the power of attorney: for example, you can give the guardian the right to make donations on your behalf, for example to your grandchildren on their birthdays. You can also give the trustee the right to represent you in a real estate transaction.
In the power of attorney, you can specify whether the attorney is required to give an account for the management of your finances to the Office for Digital and Population Information.
It's worth tailoring a power of attorney to your specific needs.
Forms of the letter of representation
Make sure that the formalities (content and witnesses) of the power of attorney are correct to make it valid.
Please note that the power of attorney must state at least:
- the names and contact details of you, your guardian and the alternate guardian
- the purpose of the authorisation (i.e. tell them it is a Power of Attorney)
- matters in which the authorised representative is entitled to represent you
- a provision that the power of attorney takes effect when you become incapable of looking after your own affairs because of illness, mental incapacity, failing health or similar reasons
Witnesses to the power of attorney
The power of attorney must be signed by two witnesses who are unobstructed. The witnesses must be present at the same time when you sign the power of attorney. The signatures of the witnesses attest that you have understood the meaning of the power of attorney.
You should not ask your spouse, child, grandchild, sibling, parent or spouse to be a witness. They are not unobstructed witnesses. Therefore, ask unrelated persons to witness the power of attorney.
Alternate and substitute delegates
In the event that the delegate is unable to perform the delegate's duties, it is also advisable to provide for a substitute delegate in the mandate. In such situations, the secondary delegate acts as the delegator's representative when, for example, the primary delegate is ill or has moved abroad.
An alternate councillor takes over when the full councillor is unable to perform his or her duties.
Usually, the power of attorney is given to the attorney for safekeeping or the attorney is told where to find the document.
How does the deed of trust come into force?
The power of attorney is not valid once it has been drawn up, but is validated by the local register office. The validation is requested by the person who has been authorised to act as guardian in due course.
Confirmation is done when it is considered that you are no longer able to manage your affairs. However, it is not enough for the authorised representative to request a confirmation of the authorisation: the application for confirmation sent to the Office for Digital and Population Information must be accompanied by a medical certificate stating that your capacity to act has deteriorated.
Article drafted by the AdvocateTuula Rainto, Asoianajotoimisto Amos. You can always call him free of charge, tel. 010 299 5090. You can see our price list Here.
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