Power of attorney for banking matters

In short: A banking power of attorney allows an authorised person to conduct banking transactions on behalf of the account holder, such as making transfers or withdrawing money. It’s especially important for emergencies in which the account holder can’t act themselves.

In more detail: Without such a power of attorney, even the closest family members can’t access the account of an incapacitated person without a guardianship procedure.

In detail

• Specific versus general power of attorney: A bank account power of attorney can be limited to a specific account or form part of a broader general power of attorney.
• Formal requirements: Banks usually require their own form for account powers of attorney; an informal, self-written power of attorney is often not accepted.
• Beyond death: A power of attorney can be designed to remain valid even after the account holder’s death, significantly simplifying estate settlement.
• Revocation: The account holder can revoke a granted power of attorney at any time as long as they’re legally competent.
• Trusted person: Since the authorised person gains extensive access to the assets, the power of attorney should only be given to absolutely trustworthy people.
• Alternative general power of attorney: A general power of attorney for care can also cover banking matters but doesn’t always replace the specific account authorisation the bank requires.
• Liability risks: The authorised person must act in the account holder’s interest; abuse of the power of attorney can have criminal and civil consequences (betreuungsverfuegung-grundlagen, vorsorge-fuer-den-digitalen-nachlass).