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Operations guide

Managing powers of attorney: bank mandates, general powers, deadlines

Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Other languages: Deutsch · Français · Español

Short answer

A family office almost always acts on the basis of powers of attorney: bank mandates, signing authority for companies, general and special powers, and advance care directives or lasting powers of attorney. A central register is decisive, recording scope, attorneys, time limits, effect after death and where the original is kept. Outdated powers are a risk – and so are missing ones in an emergency.

The main types

  • Bank mandates: rights to dispose of or obtain information on accounts and portfolios, usually on the bank's own forms.
  • Signing authority: individual or joint signature for companies, entered in the commercial register.
  • General power of attorney: comprehensive representation in all financial matters.
  • Special power of attorney: for a specific transaction, such as the sale of a property.
  • Advance care directive (Vorsorgeauftrag, Switzerland) and lasting power of attorney (Vorsorgevollmacht, Germany and Austria): representation in case of incapacity.

Effect after death

Whether a power of attorney lapses on the death of the grantor depends on its content and the applicable law. Powers that remain valid after death allow the attorney to remain able to act until the succession is clarified – for example to pay invoices. Banks handle such powers differently; their effect should be clarified with each bank in advance. Heirs can revoke such a power.

Registers and deposit

In Switzerland, the existence and place of deposit of an advance care directive can be registered with the civil registry office. In Germany, the Central Register of Lasting Powers of Attorney of the Federal Chamber of Notaries records them, and in Austria the Austrian Central Register of Representation. Registration makes it easier for courts and authorities to find the right person in an emergency.

Keeping a register of powers

  1. Record all powers: grantor, attorneys, scope, individual or joint authority.
  2. Note time limits, reservations of revocation and effect after death.
  3. Record where the original and the copies are kept.
  4. Transfer expiry and review dates into the calendar.
  5. When staff change or leave, revoke powers immediately and inform the banks.

Typical risks

Former employees with bank mandates that are still valid, powers granted to people who have died, joint signatures that can no longer be exercised because someone has left, and missing advance care directives in the older generation. The last risk in particular often only shows when it is too late: an authority or a court must then appoint a representative.

In FLIORE

FLIORE keeps powers of attorney per mandate with attorneys, scope and expiry date. Expiring powers appear in the compliance calendar; the original is stored encrypted in the document vault.

At a glance

Core content of the registerScope, attorneys, time limit, death, place of deposit
RegistersCivil registry office (CH), Central Register of Lasting Powers of Attorney (DE), ÖZVV (AT)
Biggest riskOutdated powers and missing arrangements for incapacity

Terms on this page

Lasting power of attorney
A declaration by which a person determines who will represent them if they lose the capacity to make their own decisions.

Frequently asked questions

How often should powers of attorney be reviewed?

At least annually and whenever staff change. Some banks also require authorised signatories to be confirmed regularly.

Does a general power of attorney replace an advance care directive?

Not reliably. In Switzerland, the advance care directive with its formal requirements is the instrument for incapacity. In Germany and Austria, too, the power should expressly apply to that situation.

Must the bank accept a general power of attorney?

Banks prefer their own forms and can reject general powers or require additional checks. It is worth granting bank mandates on each bank's own forms as well.

Who may revoke a power of attorney?

The grantor at any time; after their death, as a rule the heirs. The revocation should be in writing and communicated to all banks and contractual partners.

Sources

This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.

Read more

Compliance guideCompliance calendar: deadlines over a family office's yearTechnology guideElectronic signatures in a family officeSuccession SwitzerlandExecutors of wills in Switzerland (Willensvollstrecker)Security guideAccess rights concept: who may see what in a family officeSuccession SwitzerlandThe lasting power of attorney (Vorsorgeauftrag) in Switzerland

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