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Continuous power of attorney: all the benefits in one document - Walla! Trial

2021-01-17T09:55:55.724Z


It will save you quite a bit of bureaucracy, make you order in life and make sure that the parents' wishes are fully respected, until the last stop. All that matters to know about the importance of a continuing power of attorney


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Continuous power of attorney: All the benefits in one document

It will save you quite a bit of bureaucracy, make you order in life and make sure that the parents' wishes are fully respected, until the last stop.

All that matters to know about the importance of a continuing power of attorney

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  • Continuous power of attorney

Attorney and notary Shira Eisenstadter, in collaboration with Legal Zap

Thursday, 14 January 2021, 10:13

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Arrange life in one document (Photo: ShutterStock)

None of us want to think about the day when his parents will not be able to make decisions independently.

We would all be happy if our parents would keep their minds clear throughout life and that we would not have to make decisions for them.

But the truth is that none of us can predict the future and reality shows us that every year thousands of new cases of dementia are diagnosed in Israel in the elderly.

In fact, one in five elderly people already suffers from a certain level of dementia, which is likely to worsen over the years.



Despite the difficulty of talking about the day when the parent will not be able to make decisions regarding his or her affairs, there is no doubt that this is the most wise move for anyone who is at the forefront of the parent’s personal well-being.

The only way the parent's good will be preserved and that his life will be conducted exactly as he would like, is to make a continuing power of attorney ahead of time.

Unfortunately, many in the general public still do not understand the importance of the document and its benefits and are hesitant to encourage parents to do so.

Hesitation is understandable but not worth it

Not only for the children of older parents it is difficult to imagine the day when parents will not have the ability to think clearly.

Obviously even for the parents themselves it is not easy to imagine such a reality and deal with it.

The emotional difficulty is obvious, but a lack of coping can lead to unpleasant consequences.

It is important to understand that drafting a continuing power of attorney is the perfect solution for all parties: both for the parent and for his children.

This fact is due to a number of reasons, when first and foremost, a continuing power of attorney assures the parent that the rest of his life will be conducted exactly as he would have managed them if he could have continued to manage them on his own.



When the parent reaches a situation where, according to a medical determination, he is no longer able to make decisions regarding his affairs, there is no escape from appointing a person to manage the affairs of the parent in his place.

If the parent has not made a continuing power of attorney, there will be no escape from appointing a guardian.

This is a procedure that requires going to court, for all that that implies.

The guardian can be his child or an external person and he will determine how all the affairs of the person in need of the guardian will be managed, according to his understanding and according to the court's instructions, without there being any real reference to the parent's will, if not expressed in advance.



It is important to emphasize to the parent, when it is still possible to have a conversation with him, that his unwillingness to deal with the thought, which is indeed unpleasant, of what will happen after he can not decide his own affairs, will cause his will not affect what will happen and the guardian will decide for him. Guess the parent would have wanted and according to court instructions.



All the more so if there are several children in the picture, each believing that the parent was interested in living his life and managing his money and assets differently or making different medical decisions.

Even if we assume that each of the children is solely interested in the parent's well-being, the question that will arise will be what the parent's desire is.

When each child holds a different opinion, not only is it possible that the parent's desire will not be respected but an opening will be created for many disputes and even for conflicts within the family.

Continuous power of attorney facilitates economic conduct

Many are unaware of this, but once the bank where the parent's account is maintained will be aware that the account holder is not qualified to make decisions on his own, the activity in the account will be frozen or reduced to only necessary things.

In a situation where one of the children is appointed guardian, he will still not be able to operate freely in the bank account and will have to report, explain the financial actions he has taken and get approval for his actions from the Custodian General, who oversees his actions.



On the other hand, in a situation where there is a continuous power of attorney that is activated only after the person can no longer manage his affairs and it is clearly stated that the parent approves the power of attorney to perform such and such actions, the bank should not refuse to perform these actions.

The aspiration is that the proxy will have the powers to do the actions which the parent wanted him to do both for his daily life and for extraordinary actions.



For example, if the parent transfers a certain amount of money each month to his grandchildren or a certain amount of money as a donation to a certain charity close to his heart and he wants to continue to pamper the grandchildren or donate regularly even when he is not eligible to make that decision each time, he can state it continual.

On the other hand, if the parent does not make a continuing power of attorney, it will not be possible to exercise this special will.

The document that puts an end to bureaucracy

One of the most important benefits of continuous power of attorney, is reflected in the fact that it saves children a great deal of bureaucratic preoccupation.

For example, in a situation where there is no continuous power of attorney, the children are obliged to present the Custodian General with a lot of documents before and after they are appointed as guardians.



Among other things, a privatization must be submitted, listing all the assets owned by the parent, a breakdown of the "living basket" (all expenses necessary for the parent to live on with proof of all expenses) and all the parent's income from various sources must be reported and income balanced.

The guardian's approval must then be obtained for the height of the "living basket" and must not be exceeded.

In addition, one report should be submitted once a year and explicit approval given for each significant step. This is because the Custodian General should oversee the way the parent's Custodian works.



Now try to imagine a reality where each year you have to submit an annual report on how you managed the The parent's property, what actions you performed on his account and more.

"All this without mentioning the fact that you may need to hire an appraiser (in order to provide the Custodian General with an assessment of the value of the parent's assets) as well as a tax advisor, bookkeeper or accountant to help you collect and analyze all documents and expenses." annual report.



anyone who has tried to check and write down all expenses compared to revenues (for example to find out why he was overdrawn at the bank and where you can save) knows how this complex task, tedious and frustrating. That's what you need to do every year if you need to be a guardian parent .



a power of attorney ongoing obviating all of it and save the children of the parent lot of hours of work, a lot of energy and a sense that a lot of frustration. the time saved thanks to the fact that everything is known in advance and carried out in accordance with the wishes of the parents, it is expressed in the document of power of attorney ongoing, to Invest in the parent himself: Instead of running around between the tax advisor and the Custodian General and the accountant, you can simply visit the parent and spend quality time with him.

The end of bureaucracy (Photo: ShutterStock)

Disperse the fog screen for as long as possible

In many and very unfortunate cases, the children of the parent who has lost his sanity, feel great remorse for not bothering to find out in advance what his desires are regarding certain issues.

For example, children may find themselves in a difficult dilemma when it comes to how to care for a parent: would he prefer to live in sheltered housing with his peers, would he be happy to move into one of the children's apartments or for him the best option is to stay home with a close caregiver?

What medical treatment would he like to receive, is it supportive care or also invasive treatment?



Each of these options will significantly affect his quality of life so as long as it is not known and clear in advance what the parent would like, it is a decision that is not simple at all.

The interesting thing is that while discussing the continuing power of attorney, touch on a variety of sensitive and complex issues that might not otherwise have come up for discussion at all.

Although these are not simple issues, keep in mind that there is a good chance that you will have to deal with them at some point or another.

Naturally, it is much more correct, wise and efficient to deal with them in the presence of the person for whom the decisions will be made and while hearing his desires.



Attorney and notary Shira Eisenstadter



Phone - 09-7655842



Article courtesy of Zap Legal The



information presented in the article does not constitute legal advice or a substitute for it and does not constitute a recommendation for taking proceedings or avoiding proceedings. Anyone who relies on the information in the article does so at his own risk.

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Source: walla

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