Who will make decisions on your behalf when, due to aging or illness, you are no longer able to care for yourself? Does the loss of legal capacity automatically mean that a public guardian, as a "government-appointed caretaker," will act on your behalf in all situations?
A power of attorney for guardianship allows an individual to arrange the management of their affairs in advance, in case they later become incapable of handling their own matters due to illness, deteriorating health, or another similar reason. The power of attorney anticipates possible incapacity and authorizes a pre-selected person to manage the individual's affairs in accordance with their specific wishes.
If a power of attorney for guardianship has not been established, the guardianship authority will, at its discretion, appoint a suitable person to act as the guardian. If there is no suitable person within the individual's close circle, a public guardian will be appointed. In cases where a public guardian is appointed, the individual’s specific wishes regarding the management of their affairs may not always be fully realized. In contrast, a power of attorney for guardianship allows for highly personalized approaches in both financial matters and, for example, healthcare decisions. Once the need for guardianship has arisen, it is too late to influence the management of one’s affairs.
A power of attorney for guardianship offers the appointed guardian more flexibility than guardianship under the Guardianship Act provides to a public guardian. This is crucial when the goal is to enable personalized management of assets and investment activities, as well as high-quality healthcare and care services. Healthcare decisions can still be specified in more detail through a living will, which should be aligned with the power of attorney for guardianship.
By establishing a power of attorney for guardianship, you ensure certainty about who will be appointed as the guardian and guarantee the smooth management of both financial and personal matters. A power of attorney for guardianship helps avoid some of the bureaucracy associated with guardianship, such as the requirement to prepare an annual account. For example, the sale of a share in a housing cooperative is an action that the appointed guardian can always perform, while under guardianship according to the Guardianship Act, it is always subject to approval. Additionally, actions such as the sale or pledge of real property and the buying and selling of high-risk investment products are procedures that, without the specific provisions of a power of attorney for guardianship, always require approval from the guardianship authority. A power of attorney for guardianship can also allow for the gifting of assets, such as to children, in a situation where legal capacity has been lost.
The person appointed as the power of attorney for guardianship is typically a trusted close individual, such as a family member or a friend. Additionally, it is possible to designate alternate and secondary attorneys, as well as attorneys to handle specific, individually defined legal actions. It is important to note that the execution of gifts requires the appointment of an unrestricted alternate attorney.
A power of attorney for guardianship must meet certain formal requirements and be signed by two disinterested witnesses. It should be drafted with the assistance of a lawyer familiar with the matter. The power of attorney comes into effect when it is submitted to the Digital and Population Data Services Agency along with a medical certificate confirming the need for the authorization. Until the authorization is officially validated by the authorities, the appointed attorney does not have the right to act.
Guardianship based on a power of attorney for guardianship is a more flexible and lighter alternative to guardianship under the Guardianship Act. The authorization allows for pre-defined, individualized solutions. With the help of the experienced professionals at PreLex Oy, a tailored power of attorney for guardianship can be created for you, ensuring the smooth management of your affairs in situations where you are no longer able to act and make decisions independently. Take action in time!
