Why a Power of Attorney Is So Important – and Why You Shouldn’t Wait

July 18, 2025

Egon Wenzinger

“A power of attorney is a simple yet highly effective way to preserve your self-determination – even if you later become unable to act. Those who plan ahead not only protect themselves but also relieve their loved ones in difficult situations.”

What Is a Power of Attorney?

A power of attorney can be created by any adult person, provided they are legally capable at the time of creation. It does not take effect immediately, but only once incapacity due to accident, illness, or dementia has actually occurred.

With a power of attorney, you can appoint one or more trusted persons to act on your behalf in three key areas:

Personal care: Decisions regarding living arrangements, care, nursing, and medical measures.
Asset management: Administration of income and assets, protection of your financial interests.
Legal representation: Representation toward authorities, banks, and other institutions.

Those appointed are often spouses or partners, children, other family members, friends, or professional trustees and financial advisors.

Formal Requirements – What You Should Know

For a power of attorney to be legally valid, it must be handwritten in full, dated, and signed, or officially notarized.

It is strongly recommended to store the original document in a secure place – for example, in a safe, with a trustee, or directly with the KESB (Child and Adult Protection Authority). It is important that the appointed person knows where the document is kept.

Once incapacity occurs, the KESB examines the validity of the document and confirms whether the appointed person is suitable and willing to take on the responsibility. After this review, the appointed person receives an official certificate that allows them to act on your behalf toward third parties.

Who Especially Needs a Power of Attorney?

Unmarried couples: They do not benefit from any automatic legal representation.
Single persons: Without a power of attorney, the KESB will generally appoint a representative.
Married couples: Although limited legal representation exists, it does not cover all areas. A power of attorney ensures full clarity and security.

What Happens If There Is No Power of Attorney?

If no power of attorney has been established, the KESB usually decides who will represent the incapacitated person. In doing so, you lose the ability to determine in advance who should be entrusted with this responsibility.

Conclusion

A power of attorney is a simple yet highly effective way to preserve your self-determination – even if you later become unable to act. Those who plan ahead not only protect themselves but also relieve their loved ones in difficult situations.

We are happy to support you with any questions regarding powers of attorney and financial planning.