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In many life situations, it can be useful or even necessary to grant another person far-reaching decision-making authority. This is precisely what a general power of attorney is designed for. But what does this mean in practice, and what opportunities and risks are associated with it?
A general power of attorney is a legal declaration by which one person (the principal) grants another person (the attorney-in-fact) comprehensive authority of representation. The attorney-in-fact can act on behalf of the principal in almost all matters—for example, concluding contracts, conducting banking transactions, or handling administrative procedures.
Business representation: Entrepreneurs often use a general power of attorney to ensure that their company remains able to act during their absence.
Private precaution: Individuals may appoint a trusted person to make decisions if they themselves are no longer capable of doing so. However, the distinction from the health care proxy (Vorsorgevollmacht) under the Swiss Civil Code (ZGB) must be observed.
Authorities and contracts: The attorney-in-fact may represent the principal before authorities, banks, or contractual partners.
Advantages:
Immediate capacity to act in emergencies or absences
Relief for the principal
High flexibility for business and private matters
Risks:
Risk of abuse, since the attorney-in-fact is granted very extensive powers
Difficulties in monitoring the decisions made
Some institutions (e.g., banks) may require additional forms or specific authorizations despite a general power of attorney
A general power of attorney must generally be drafted in writing and signed. However, for certain transactions—particularly those requiring public notarization (e.g., property sales)—a simple general power of attorney is not sufficient. In such cases, additional legal requirements apply.
The general power of attorney is a powerful instrument that enables comprehensive representation. Anyone granting such authority should entrust it only to a person of their absolute confidence and draft the document with clarity. In case of doubt, seeking legal advice is recommended to avoid misunderstandings and misuse.
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