Israeli Financial Power Of Attorney and Israeli Healthcare Power of Attorney – A Key Step in Planning for the Future!
Planning for unfortunate situations like an accident, injury or a serious illness is rarely on anyone’s to-do list. However, sometimes, enduring a little discomfort and planning for the misfortune may help you avoid untold anguish on the part of your family in the future. It is certainly the case with Israeli Financial Power of Attorney that becomes indispensably important when sickness renders you incapable to take care of your own affairs.
It is probably a good idea to contact one of the best law firms in Israel and set up a financial power of attorney.
What is the Financial Power of Attorney?
A power of attorney is a legal document in which you appoint an agent to take care of your assets on your behalf in your absence or at the time of incapability. The financial power of attorney may give the agents very broad powers or very limited actions to take on your behalf. In either case, the agent you select in the power of attorney should be highly trusted to you.
There are two types of Power of Attorney – Durable and Non-durable.
- The “Non-durable” Power of Attorney –
If you sign a Non-durable Power of attorney, the document will be effective until you are competent to take care of your own affairs. At the time you become incompetent or incapacitated, however, your appointed agent will no longer be able to act on your behalf and the power of attorney automatically will be revoked by law. It simply means that when you really need your trusted agent to take care of your property, he/she will not be able to do so.
- The “Durable” Power of Attorney –
If you sign a Durable power of attorney, it will not be revoked after you become incompetent. Also, your agent can act on your behalf even after any serious illness or injury has rendered you unable to handle your own affairs. Hence, the Durable Power of Attorney is a far more reliable document while planning for the unseen future. However, even with a Durable Power of Attorney, the death of the Principal will result in the termination of the agent’s powers and immediate revocation of the document.
While elsewhere in the world, a private individual has been able to execute a durable power of attorney for decades, here in Israel, it is only in the past few years that this is allowed to be done – by an attorney specially trained and certified by the Israel Bar Association to do so. David Page is one such attorney. Before that, when you became incompetent, a relative actually would have to go court to gain power of attorney over affairs to the extent you were incapable of handling them (usually by reason of health issues).
Benefits of preparing a durable power of attorney
- A Matter of Convenience –
It is usually convenient for people to give a trusted and nearby family member or trusted friend or professional financial power of attorney in case they themselves become incompetent. In such a situation, a Durable Power of Attorney can come in handy. Your trusted agent will act in your absence and sign any documents that are required to ensure that your affairs are properly handled according to your own wishes, as set forth in the durable power of attorney document.
- A Matter of Protecting Loved Ones –
If you become physically or mentally compromised to the point that you will not be able to take care of your own financial, healthcare, or legal affairs and it becomes essential to mortgage your home to pay your medical bills, who will sign the mortgage? In such a situation, the agent you have appointed in your Durable Power of Attorney will have all the rights to handle legal affairs.
If the physician wishes (for example) to without feeding, against your will, who will have the authority to speak for you when you cannot do so to instruct the physician and hospital or other healthcare providers as to your wishes? For that, you assign someone the power to do so under a Durable Power of Attorney for Healthcare Matters.
In simple words, the Durable Power of Attorney gives your Agent the power to step into your legal shoes when you are incompetent to do so.
Advance planning is easy to put off but doesn’t do so! Advance planning and preparing an Israeli Financial Power of Attorney or an Israeli Power of Attorney for Healthcare may make an otherwise difficult situation for you and your family just a bit more manageable.
March 18, 2020