What is a lasting power of attorney,and why does it matter?

A lasting power of attorney is a legal document that lets anyone over the age of 18 decide how, and by whom, their affairs will be handled in the future, if they can no longer handle them themselves. This article is based on a talk by Adv. and Notary Liron Segev.

Why does it matter?

Any of us could reach a point where we can no longer make our own decisions. The cause might be an illness of old age, such as dementia, a mental disability, or any other reason.

A lasting power of attorney lets you decide in advance who will make these important decisions for you if you are no longer able to make them yourself. The choice stays with you, rather than passing to people you did not choose.

What happens without one?

If someone can no longer manage their affairs and has not made a lasting power of attorney, their family may need to apply to the court to appoint a guardian. In that case it is the court that decides who is appointed, and for which matters.

A lasting power of attorney lets you decide this yourself, in advance, while you are still able to.

Which matters does it cover?

You choose which matters the power of attorney covers:

• Property and financial matters, such as managing money, bank accounts and assets.
• Medical matters.
• Some of these, or all of them.

Two key terms

• The grantor: the person who makes the power of attorney and decides who will act on their behalf.
• The attorney: the person the grantor has chosen to act for them once the power of attorney takes effect.

What may the attorney do?

Under the law, the attorney may make any decision on the grantor's behalf, in the matters covered by the power of attorney, that the grantor could have made. The attorney may also carry out any action in those matters that the grantor was entitled to carry out.

The attorney may also receive information that the grantor is entitled to receive in connection with those matters.

All of this is subject to the instructions the grantor set in the power of attorney, and to court instructions under the law. The exception: an action that by its nature or by law must be carried out in person.

What may the attorney never do?

There are actions an attorney may not carry out on the grantor's behalf, even under a broad power of attorney:

1. Changing religion.
2. Making decisions or taking actions that the grantor was authorised to take on behalf of someone else, or as a parent or guardian.
3. Consenting to a child being given up for adoption.
4. Voting in elections.
5. Any action or expression of wishes that a patient, the patient's attorney or guardian may carry out or express under the Dying Patient Law, 5766-2005.
6. Making a will, or naming beneficiaries for sums payable on a person's death under section 147 of the Succession Law, 5725-1965.

What else does the law set out?

The law also sets out how the grantor makes decisions, the duty to deposit the power of attorney, how it is put into effect or cancelled, and more.

A lasting power of attorney is prepared before a lawyer who is authorised to do so. Adv. Segev is authorised to prepare lasting powers of attorney.

In short

A lasting power of attorney is a way to decide for yourself, while you still can, who will look after you and your affairs if one day you cannot. It is worth thinking about in good time, not only once the need arises. An open conversation with your family and with the person you choose as your attorney helps everyone know what matters to you.

This article is general information, not legal advice. For advice on your situation, contact the office.