Who takes care of my banking transactions if I can't do it (anymore)? Account holders can determine this at an early stage - with a bank power of attorney. What speaks for it.
Making transfers, withdrawing money - most people want to take care of these and other financial matters themselves. But what if that is not possible due to illness or a stay abroad? For such sometimes unexpected cases, it is good to give a trusted person such as a relative or friend power of attorney.
What exactly is a bank power of attorney?
With a bank power of attorney, a person holding an account authorizes another person to represent them in business transactions with the bank. "The power of attorney can be limited to a single account or deposit or can be granted for the entire business relationship," explains Sylvie Ernoult from the Association of German Banks in Berlin. As a rule, the bank power of attorney is about the right to dispose of the respective credit balance, for example through transfers or cash withdrawals.
What is the power of attorney needed for?
Many people do not realize that in an emergency, relatives do not automatically have the right to take charge of the financial affairs of a family member in need of help. This is only possible with a bank power of attorney. If such a document is not available, a court will appoint a supervisor for the person in need of help if the worst comes to the worst, based on legal requirements. If you want to prevent this, give a trusted person the appropriate power of attorney.
What is the difference between bank powers of attorney?
On the one hand from the classic power of attorney, which also enables representation in medical matters with doctors or hospitals or before authorities. "On the other hand, the bank power of attorney must be distinguished from a joint account in which the person of trust is also one of the account holders and has extensive rights," says Helena Klinger from the Institute for Financial Services (iff) in Hamburg.
Which rights does the person of trust have and which not?
"A bank power of attorney is not a general power of attorney," Ernoult clarifies. Such a power of attorney entitles you to carry out only the banking transactions listed in the document. This can be used, for example, to make transfers for rent or running costs, withdraw money or use loans that have already been granted to the person who holds the account. Important: "The person of trust cannot take out any new loans," says Ernoult.
Depending on the wording of the power of attorney, the person of trust can also buy and sell foreign exchange and securities or receive account statements, mail and deposit statements. Depending on the power of attorney, she is also entitled to recognize the account balance as the balance.
Only the account holder, and not the person of trust, can terminate the account, transfer it to another name or open additional accounts. "The same applies, for example, to issuing sub-authorizations or applying for EC/Maestro/debit cards," says Klinger.
What do you have to consider when issuing the power of attorney?
According to Ernoult, anyone who has several accounts with different banks must grant a separate power of attorney for each account if the authorized person is to have access to all of these accounts or custody accounts. To conclude such a power of attorney, contact the bank and go there together with the person you trust. "This way, the bank can rule out any doubts about the power of attorney being granted," says Ernoult.
According to her, the bank is also legally obliged to determine the personal data of the authorized person using the identity card or passport.
"Alternatively, some banks require bank customers to go to a notary with the person they trust to have their power of attorney authenticated, who will then carry out the identity check before signing," says Helena Klinger.
With a direct bank, account holders are usually provided with the form for granting power of attorney online. This is then filled out and signed back to the bank. "The identity check of the authorized person, which is also required here, is then carried out, for example, using the Postident procedure," says Ernoult.
How can it be ensured that the person of trust does not access the money unlawfully?
There may be restrictions in the power of attorney. For example, it can apply "for lifetime only" or be linked to a specific amount such as 1000 euros. "Then the bank also has an eye on transactions that may not be covered by the power of attorney," explains Klinger.
As soon as the relationship of trust is violated or the account holder notices irregular debits by the authorized representative, the authorization can be revoked at any time. "The best way to do this is in writing to the bank," advises Ernoult.
