Lasting power of attorney
Vorsorgeauftrag, Vorsorgevollmacht
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A declaration by which a person determines who will represent them if they lose the capacity to make their own decisions.
In Switzerland it is called a Vorsorgeauftrag and is validated by the child and adult protection authority (KESB); in Germany and Austria it is a Vorsorgevollmacht, registered in the Central Register of Lasting Powers of Attorney or the Austrian register (ÖZVV).
In practice
Without a lasting power of attorney, an authority or a court decides on representation in the event of incapacity – with consequences for company shareholdings and bank relationships as well. In practice, the document names persons for financial matters, personal care and legal dealings, appoints substitutes and observes the formal requirements. The family office keeps a copy, the place of deposit and the contact persons available and checks whether the powers fit the company agreements and bank mandates.
Distinctions and common mistakes
A lasting power of attorney only takes effect in the event of incapacity. An ordinary power of attorney applies immediately, but in Switzerland, unless otherwise agreed, it generally ends when the principal loses capacity to act (Art. 35 Code of Obligations). Typical mistakes are missing substitutes, missing rules for voting rights in family companies and formal defects: in Switzerland, the document must be handwritten or publicly notarised.
Relevant in: Switzerland · Germany · Austria
Related terms
- Inheritance contract
- A contract on succession between the deceased-to-be and other persons which – unlike a will – binds all parties to it.
Mentioned in these guides
- Managing powers of attorney: bank mandates, general powers, deadlinesHow a family office keeps track of bank mandates, general and lasting powers of attorney: types, effect after death, registers and time limits.
- Marital property, compulsory shares and inheritance contracts in SwitzerlandMarital property and inheritance law for Swiss families: participation in acquired property, marital agreements, compulsory shares since 2023, wills, contracts.
- The lasting power of attorney (Vorsorgeauftrag) in SwitzerlandWhat a Swiss lasting power of attorney covers, the form it needs, how the KESB validates it and why entrepreneurs need one as much as a will.