The living will is a collective name for various arrangements that people make for the time when they have not (yet) died, but can no longer or do not want to handle matters independently. With this living will, matters are arranged for the moment when someone no longer wants or is able to do so, for example due to limitations due to physical or mental defects. The living will therefore arranges matters now for a moment when someone will no longer be able to do so later.
Financial management scheme
Part of the living will is an arrangement for financial management. The management power of attorney is a very good tool for this. The management power of attorney gives a confidant such as a partner or one or more children the authority to act on behalf of the person in question in all actions that affect a person’s assets. For example, that person or those persons can sign on behalf of the person who issued the power of attorney when selling a home, paying bills or when filing tax returns.
Have donations made from assets
The management power of attorney can also be expanded with the option to make donations from someone’s assets. This means that less inheritance tax needs to be paid upon death.
When issuing a management power of attorney, it is necessary that guarantees are provided. This is to prevent abuse. A general management power of attorney does not need to be notarized, but due to the risk of abuse by the power of attorney, experts recommend having an independent third party such as a notary look at it.
Openness about power of attorney
Furthermore, it is wise to discuss such a power of attorney in complete openness with all parties that will be involved. These can be partners or children.
Layered power of attorney
It is also possible to draw up a layered power of attorney. In this way, the spouses first authorize each other and only then are the children authorized.
The power of attorney may also include:
- Extensive instructions regarding, for example, donations
- Size and time limitations
Advantage of power of attorney
The advantage of a power of attorney is that the content can be adjusted to what someone wants. So completely customization. The disadvantage is that there is no automatic external assessment. This is the case with an administration by the subdistrict court judge. This disadvantage can also be overcome. This can be done by building similar restrictions into the power of attorney, just as with a guardianship.