How you are fully protected at all times - All important powers of attorney at a glance

A fatal accident or serious illness can affect anyone - even at a young age. The spouse or a close relative will by no means automatically take over the legal transactions on behalf of the person affected. This makes it all the more important to make provisions at an early stage. Power of attorney holders can grant people they trust comprehensive decision-making powers in the event of an emergency or prolonged absence, which even extend beyond their own death. Going to a notary is usually not mandatory, but is highly recommended to prevent the validity of the power of attorney from being questioned. Below you will find an overview of the most common powers of attorney for private individuals and companies.

General power of attorney

The general power of attorney is the greatest possible transfer of decision-making powers in legal and personal matters. However, it does not cover all areas of life: for example, if the authorized representative is to be allowed to decide on medical treatment for the principal, this must be expressly stated in the power of attorney. In principle, representation in highly personal matters such as marriage, divorce or making a will is excluded.

Trans- and post-mortem general power of attorney

General powers of attorney can be granted as a precautionary instrument even after death. This means that they continue to be effective after the death of the principal and enable the authorized representative to terminate contracts in the name of the deceased or carry out banking transactions on their behalf, for example, even without a certificate of inheritance. Transmortem powers of attorney are valid both before and after the death of the principal, while postmortem powers of attorney are only valid after the end of life.

Lasting Power of Attorney

With a health care proxy, the principal can authorize a person they trust to make financial decisions on their behalf. Authorized representatives can, for example, dispose of bank accounts and safe deposit boxes, conclude and terminate contracts and represent the principal in dealings with courts and authorities. The power of attorney can be revoked at any time as long as the case of care has not occurred.

Living will

If potential patients want to make provisions in the event that they are no longer able to express their own treatment wishes, a living will is recommended in addition to the power of attorney. This should describe as precisely as possible which forms of treatment should be carried out in which situation. General formulations such as not wanting life-prolonging measures are generally not sufficient.

Care directive

Anyone who is no longer able to manage their own affairs after an accident, for example, is assigned a legal guardian. To prevent this person being appointed by a court, a person of trust can be appointed in a care directive instead. The power of representation can be comprehensive or limited to certain areas. Furthermore, the guardian is subject to the control of the guardianship court and requires its approval, for example, for house liquidations or house sales.

Procuration

One of the most important powers of attorney in commercial companies is the power of attorney. It is a very far-reaching power of representation, the scope of which is regulated by law and - with a few important exceptions - includes almost all judicial and extrajudicial legal transactions. Procuration can only be granted personally by business people such as GmbH managing directors or their legal representatives and must be entered in the commercial register by a notary.

Power of attorney

Another business representation responsibility is the power of attorney. This can be granted by a businessman or authorized signatory to an employee. Unlike the power of attorney, it is limited to a commercial transaction; the authorized representative may therefore only carry out individual, specific legal acts that are customary for the commercial trade. In addition, the power of attorney can be transferred with the consent of the principal.

Protect powers of attorney from misuse

To avoid abuse, only absolutely trustworthy persons should be granted power of attorney. In addition, the principal should make the power of attorney revocable and specify directly in the document the purpose for which the authorized representative may use his or her powers. It is also advisable to stipulate that the authorized representative may only act if they present the signed original or a notarized copy in their name.

Are powers of attorney only valid with a notary?

It is a widespread misconception that only notarized or certified powers of attorney are valid. A notarized power of attorney is absolutely necessary, especially in connection with real estate contracts. However, the involvement of a notary makes a lot of sense, especially if there are doubts about the mental health of the person granting the power of attorney due to their age, for example. If you go to a notary and have your legal capacity confirmed at the time of signing as well as the authenticity of the signature, you reduce the risk of the power of attorney not being recognized by a third party. The principal should generally avoid using sample forms from the Internet.

You can find further news at https://ratgeber-notar.de/.