What can a Power of Attorney spend money on?

What is a power of attorney

It may be the case that, as children, we are concerned about resolving financial problems caused by careless administration. In these cases, requesting the mediation of a third party, such as a lawyer, social worker or financial advisor, could be of great help to intercede with your parents.

The Civil Code states that no one can be declared incapable, except by judicial sentence under the causes established in the Law. The Law only contemplates as causes of incapacitation the illnesses or persistent deficiencies of physical or psychic character, which prevent the person from governing himself.

It is enough to go to a notary’s office, present the DNI of both persons and pay the amount corresponding to a power of attorney for lawsuits or a general power of attorney. Approximately, the cost can range between 25 and 50 euros.

An attorney-in-fact can sell a property

Can the heirs withdraw money from the deceased’s bank account? How and when can they withdraw the money? Does the money saved by the deceased pass to the bank? All these questions, as a general rule, are among the first ones that the heirs ask themselves when they are faced for the first time with the management of inheritances, since in many occasions, many heirs want to cover the expenses of the inheritance with the money that the deceased had in the bank.

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Before continuing with this topic, it is important to clarify that the heirs must process the inheritance in order to have access to the capital. Bank accounts are included among the assets to be received by the heirs.

When the death of the account holder is notified, the issuance of the certificate of balances and positions must be requested. With this, it will be possible to know what was the cash and/or deposits and investment funds he/she had in the entity, in order to be able to carry out the partitional operations.

Once the notification to the bank has been made, the bank is in charge of immobilizing the money corresponding to the deceased person and only the current expenses (water, community fees…) will continue to be paid.

Rights and obligations of the attorney-in-fact and principal

A power of attorney is an authorization to someone to do something on our behalf, being its explanation simple, the problems that powers of attorney can pose in practice are numerous, so with these lines I do not try to dissuade anyone to give powers of attorney, but to make them reflect a little to avoid problems.

It is true that all these statements need to be qualified, but it is no less true that these qualifications will eventually lead to costly, long and complex legal proceedings (which is above all what must be avoided). Therefore it is highly recommended that before making a power of attorney we reflect on who we empower to act on our behalf and what powers we give him/her (as always rushing to the Notary’s office can end up turning against us).

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A.- Once the power of attorney is granted, the business or act that we intend to carry out escapes in a certain way from our control. I emphasize this reflection because it is true and false at the same time, true because another person and not us is going to carry out something that affects us (known is the phrase that says that the eye of the master fattens the pig), but false, because the attorney-in-fact cannot do what he wants, but must follow our instructions.

How to know if a power of attorney is false

The PP government now explains that the law was passed without an economic report and without specifying how the technological development it required should be carried out. In short, it was unfeasible. That is why it is going to be reformed even before it has entered into force. At a breakfast organized by the Association of Legal Communicators and Informers (Acijur) and La Ley / Wolters Kluwer, the Director General of Registries and Notaries, Joaquín José Rodríguez, announced: “the time has come to reform the entire operation of the civil registry to put an end to its judicialization, make it more efficient and decongest the courts”.

The reform is intended to be based on what technicians call the “interoperability of databases”. Rodriguez explained that now when a citizen requests the issuance of a national identity document (DNI) for the first time, he/she must go to the civil registry to request a birth certificate. There, they are given the document and it is the citizen who must then go to the Police, who receive the certificate and finally issue the DNI. Once the new system is up and running, the DNI can be obtained just by going to the Police, because it will be the officer at the police station who will telematically access the registry data, thus saving costs for the citizen and the Administration itself.

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What can a Power of Attorney spend money on?
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