Power of attorney and its limits
Posted: Sun Dec 22, 2024 9:46 am
You have appointed a person to take care of your affairs and administer your property for a period of time in a notarized document commonly called a power of attorney or mandate. This power of attorney allows your agent to act on your behalf for a series of acts and in certain circumstances. However, even though your agent has this notarized power of attorney in hand, he or she may encounter certain questions before being able to act on your behalf. Let's see what they are and why.
What is the purpose of the power of attorney?
A power of attorney is a document that allows a trusted person to take care of your affairs and administer your property while you are of sound mind and for a specific period (e.g. the duration of a trip) or not. The power of attorney can be specific, for a particular act, such as the sale of a building, or general or for all the assets of the principal.
Power of attorney versus protection mandate
Do not confuse the power of attorney with the protection mandate which will be used for a person who has lost their faculties. Unlike the protection mandate, the power of attorney takes effect immediately while the protection mandate takes effect when you are declared incapacitated following the homologation process of the protection mandate. In principle, the power of attorney ceases to be valid when the court recognizes your incapacity. This is when the protection mandate is useful or the opening of guardianship for the adult, in the absence of a protection mandate.
Is the power of attorney subject to questions or validation prior to its use?
It is important to know that even in the presence of a notarized power of attorney, certain questions may still arise, in order to protect the people involved.
Here are some examples:
Ensure that the power of attorney is still valid
It is entirely possible that the person who has to transact, telefoonnummer duitsland via the power of attorney, will contact you to ensure that the power of attorney has not been revoked, or that the upcoming transaction is in accordance with your wishes, such as the sale of a building. This situation often arises due to the obsolescence of the power of attorney.
Banking requirements
Financial institutions impose strict requirements on their staff. Take, for example, opening a new account. The institution must verify the identity of the account holder, not just the agent. Certain laws or regulations may limit the powers of the power of attorney. Similarly, it is preferable, in addition to the notarized general power of attorney, to complete the bank power of attorney form.
Doubts about transactions or your ability
Your agent has been representing you for years with your institution, and suddenly the transactions are blocked. Your agent does not understand, and your institution responds that it has no obligation to justify itself, in particular because of the protection of personal information and that it is its prerogative. It may have doubts about your cognitive capacity as the power of attorney is extinguished in the event of intellectual incapacity. It may also be that your institution has doubts about the fact that you could be a vulnerable person and financially manipulated, or that questionable transactions, carried out by your agent, appear on your account.
What is the purpose of the power of attorney?
A power of attorney is a document that allows a trusted person to take care of your affairs and administer your property while you are of sound mind and for a specific period (e.g. the duration of a trip) or not. The power of attorney can be specific, for a particular act, such as the sale of a building, or general or for all the assets of the principal.
Power of attorney versus protection mandate
Do not confuse the power of attorney with the protection mandate which will be used for a person who has lost their faculties. Unlike the protection mandate, the power of attorney takes effect immediately while the protection mandate takes effect when you are declared incapacitated following the homologation process of the protection mandate. In principle, the power of attorney ceases to be valid when the court recognizes your incapacity. This is when the protection mandate is useful or the opening of guardianship for the adult, in the absence of a protection mandate.
Is the power of attorney subject to questions or validation prior to its use?
It is important to know that even in the presence of a notarized power of attorney, certain questions may still arise, in order to protect the people involved.
Here are some examples:
Ensure that the power of attorney is still valid
It is entirely possible that the person who has to transact, telefoonnummer duitsland via the power of attorney, will contact you to ensure that the power of attorney has not been revoked, or that the upcoming transaction is in accordance with your wishes, such as the sale of a building. This situation often arises due to the obsolescence of the power of attorney.
Banking requirements
Financial institutions impose strict requirements on their staff. Take, for example, opening a new account. The institution must verify the identity of the account holder, not just the agent. Certain laws or regulations may limit the powers of the power of attorney. Similarly, it is preferable, in addition to the notarized general power of attorney, to complete the bank power of attorney form.
Doubts about transactions or your ability
Your agent has been representing you for years with your institution, and suddenly the transactions are blocked. Your agent does not understand, and your institution responds that it has no obligation to justify itself, in particular because of the protection of personal information and that it is its prerogative. It may have doubts about your cognitive capacity as the power of attorney is extinguished in the event of intellectual incapacity. It may also be that your institution has doubts about the fact that you could be a vulnerable person and financially manipulated, or that questionable transactions, carried out by your agent, appear on your account.