Why it is crucial to have a power of attorney (POA) in place in Spain as you age?
As people grow older, they may face physical or mental health challenges, including reduced mobility, cognitive decline, or serious illnesses, that can make managing personal, legal, or financial affairs difficult.
A power of attorney (preventive power of attorney) allows you to name someone you trust to act on your behalf in case you are no longer able to make decisions yourself.
Do not to confuse a Power of Attorney (POA) with a Will because they serve entirely different purposes. A Power of Attorney helps you to manage your affairs while you are alive, especially in case of incapacity, while a Will ensures that your assets are handled according to your wishes after you die.
In particular a POA it is important in case of:
Financial management: A financial power of attorney allows you to designate a person to manage your financial affairs (e.g. paying bills, managing bank accounts, selling property, or handling investments). If you are unable to manage these tasks due to illness or incapacity, having a trusted person take care of them avoids financial difficulties and ensures your affairs are managed according to your wishes.
Avoid legal complications: Without a POA, if you become incapacitated, your family or loved ones would have to go through a judicial process to gain control over your affairs, which can be time-consuming, costly, and stressful. In Spain, this might involve court procedures to get guardianship, where a judge appoints a legal representative, and sometimes it is not the person you would have chosen.
Ensuring respect your wishes: A power of attorney ensures that your wishes are respected when you’re no longer able to communicate them. You can specifically outline your preferences in the POA, guiding your attorney in making decisions that align with your personal values and desires. This can include everything from healthcare preferences to property management.
Protection against a possible abuse: Establishing a POA when you’re of sound mind allows you to choose someone you deeply trust. This can help protect you from potential financial or emotional abuse, as you maintain control over the decision of who manages your affairs.
It is also important in case of health decisions. A medical power of attorney gives someone the authority to make healthcare decisions on your behalf if you’re unable to do so. The health system in Spain requires formal legal authority for another person to make important medical choices, such as consenting to treatments or deciding on end-of-life care.
In Spain POAs are granted in front of a notary, and it is recommended to set it up well in advance of any potential incapacity to ensure it is legally valid.
You have to know that you can also create specific types of POA, limited to particular issues, depending on your needs.
Having a POA in place It is a proactive measure and provides you peace of mind that, in the event of incapacity, because your affairs will be handled in accordance with your wishes.
Definitely a POA it is an essential tool for preserving your autonomy and ensuring that trusted individuals act in your best interests.
Our legal team at Salvador tax & Legal can advise you specifically according to your situation, ensuring that your power of attorney complies with both Spanish law and your personal wishes.
