Power of attorney

What is a power of attorney?

A power of attorney is a power of representation established by a legal transaction. It is a unilateral legal transaction and is therefore only issued by one party in order to be legally valid. With a power of attorney, the principal can appoint one or more third parties as their authorized representative. The use of a power of attorney is widespread in everyday life. For example, when someone asks another person to collect their own parcel from a neighbor or the post office.

What do I need to bear in mind with a power of attorney?

A power of attorney can be either written or verbal. However, a written power of attorney is generally recommended, as this can avoid misunderstandings. There are general powers of attorney, also known as general powers of attorney, and individual explicit powers of attorney.

What is a general power of attorney?

A general power of attorney entitles the authorized person to make decisions for the person granting the power of attorney in all important matters and also to provide a signature.

What is an individual power of attorney?

An individual power of attorney, on the other hand, only relates to a specific legal transaction. For example, you can authorize someone to buy a car for you or collect a parcel from the post office for you.

What are the components of a power of attorney?

The following points should be included:

• Details of the principal:in e.g. surname, first name, address, date of birth
• Details of the authorized representative e.g. surname, first name, address, date of birth
• Scope of the power of attorney e.g. general or individual power of attorney
• Validity e.g. until revoked or limited in time
• Signature with place and date of the principal and the authorized representative

What types of powers of attorney are there?

In general, there are different types. We list them below so that you can get a good overview:

General power of attorney

Authorized to conclude all legal transactions. If you grant a general power of attorney, a power of attorney for health care is included.

Individual power of attorney

Authorized for a specific individual legal act.

Generic power of attorney

Authorized to conclude all legal transactions of a certain type.

Procuration & power of attorney

Business representation limited to the commercial business, e.g. as Managing Director

Power of attorney for collection

Authorized representative can collect receivables from the debtor.

Health care proxy

Power of attorney granted as a precautionary measure in the event of legal incapacity at a later date.

Living will

A living will defines medical measures for emergencies or care cases if the patient in question – the person issuing the power of attorney – can no longer make decisions themselves.

How can a power of attorney be withdrawn or revoked?

It is entirely possible to revoke powers of attorney. The principal can do this at any time, regardless of whether the underlying transaction or the underlying relationship continues to exist. The only exception here are irrevocable powers of attorney.

In what form must a power of attorney be drawn up?

A power of attorney is not legally subject to any formal requirements. The form can be freely designed, e.g. in writing or verbally. Nevertheless, the content of the power of attorney determines whether it is legally effective. Legal advice is recommended in any case.

Which transactions are covered by a power of attorney?

In principle, a power of attorney can be granted for all legal transactions. Here are a few examples from practice:

• Payments
• Dealing with authorities
• Tax returns
• Insurances
• Asset management
• Legal disputes
• Rent
• Contractual obligations
• Negotiations with business partners

Who issues a power of attorney?

In principle, any person can issue a power of attorney. This also happens regularly in everyday life. However, if the greatest possible legal certainty is to be achieved, legal advice and notarization are recommended. A notarized power of attorney is also relatively inexpensive compared to other notarial certifications.

Are there templates for a power of attorney?

There are a large number of templates available on the Internet. In principle, however, all components of a power of attorney are always identical. There is also no legal formal requirement. You can create your own structure or template or use a template from the Internet. The variant with the greatest legal certainty is achieved with legal support and notarization.

Does a power of attorney have to be notarized?

Public certification or notarization of a power of attorney is not required by law. However, legal acceptance, e.g. with authorities, banks and third parties, increases with a notarized power of attorney. It is recommended if the highest possible legal certainty is to be achieved.

What is a living will?

A living will defines medical measures for emergencies or care cases if the patient – the person issuing the power of attorney – is no longer able to make their own decisions. Any person over the age of 18 may draw up a living will. This can be revoked informally at any time.