Drawing up a power of attorney document    

The witnesses must be aware that the document is a continuing power of attorney, but they do not need to know its content. A witness must be an adult and understand what it means to act as a witness. They must also be impartial. Witnesses should write their date of birth, contact details and the time and place of witnessing next to their signature. They must state that they were both present at the same time when the power of attorney was made. In addition, they must enter a notification of the donor’s capability of understanding the meaning of the power of attorney and other matters that they consider to affect the validity of the document.

An impartial witness means that the witness must not be closely related to the donor or the donee. If several donees are appointed in the power of attorney, the witness must not be closely related to any of them. If a witness who is not impartial has witnessed the power of attorney, the guardianship authority cannot confirm the power of attorney. It is therefore important that the signatory of the power of attorney is impartial. Under the law, the donor and the donor’s spouse are disqualified as witnesses. Disqualified witnesses also include a child, sibling, parent, or grandparent of the donor or of the donor’s spouse or the spouse of such a person. The donee appointed in the power of attorney and the donee’s spouse are also disqualified. Similarly, a child, grandchild, sibling, parent, and grandparent of the donee or of the donee’s spouse and the spouse of such a person are disqualified as witnesses. The spouse means married spouses and persons who live in a shared household in marriage-like conditions or in some other partnership. Half-relatives are regarded as the corresponding relatives.

A person can use a continuing power of attorney to appoint a donee who will manage their affairs in the future when they are no longer capable of managing them. The person making the power of attorney (donor) can appoint a person they trust to manage their affairs in the future (donee). The donee is often a person from the donor’s closest circles. However, any person that the donor particularly trusts, such as a friend or a financial management professional, can act as a donee. A company, an association or a public guardian cannot be appointed as a donee.

The continuous power of attorney is drawn up for the future and circumstances may change between when the document was drawn up and its confirmation. A secondary donee should be appointed in the continuous power of attorney in case the actual donee becomes permanently incapable of acting as a donee or is not willing to accept the responsibility. Several secondary donees can be appointed. In that case, the order in which the donor would like them to take on the responsibility should be mentioned in the power of attorney.

A replacement donee should also be indicated in the power of attorney. A replacement donee is needed when the actual donee is temporarily incapable of carrying out the responsibility, for example, because of an illness. The actual donee may also be temporarily prevented from carrying out the responsibility because of being disqualified for attending to a matter. Therefore, the replacement donee appointed in the power of attorney should be a person outside the closest family, who is not disqualified for attending to the matter. A conflict of interests may arise in the division of property or in the division of inheritance or when the donor’s property is sold.

When the continuing power of attorney is drawn up, it is a good idea to reflect on whether the donee is expected to make donations to the next of kin on behalf of the donor on their special days, for example. Under the law, the donee is entitled to give a present on behalf of the donor only if its justifications have been specified in the power of attorney. The donee does not otherwise have the right to donate the donor’s property.

The donee must also be impartial when giving presents on behalf of the donor.  

The donee may become disqualified for their responsibilities to represent the donor. This may happen, for example, if the donee or the donee's close relative is the opposite party in matters such as concluding a rental agreement, the sale of an apartment, division of inheritance or a donation.

Under the law, a donee is unable to represent the donor if the donee, the donee's spouse or someone , else represented by the donee is the opposing party in the matter. The donee is also unable to represent the donor when a child, grandchild, sibling, parent, or grandparent of the donee's spouse or the spouse of any of these persons is the opposing party in the matter. The donee is also disqualified in cases where the opposing party is a child of the donee’s sibling or a sibling of one of the donee’s parents.

If an impartial replacement donee has been appointed in the power of attorney (for example, a person outside the family), the person in question can then apply for the confirmation of the continuous power of attorney for their part. When the authority has confirmed the part of the power of attorney concerning the replacement donee, the person is eligible to represent the donor in the matter in which the actual donee has been disqualified.

If the person making the power of attorney owns a real property and wishes to give the donee the right to

sell or otherwise transfer the property
apply for mortgaging for the property
establish a right of lien for the property

specific instructions indicating this must be included in the power of attorney.

Instructions according to which the power of attorney will enter into force when the donor becomes incapable of managing his or her affairs because of an illness, disturbance of mental capacity, declining state of health or some other similar reason must be included in the continuing power of attorney.

In a continuing power of attorney, the donee is given the right to represent the donor in the management of the donor's affairs. In addition, it may be necessary to provide the donee with more detailed instructions on how these powers should be used. Such instructions are individual, and they bind the donee. It is advisable to draw up the instructions in writing. When drawing up a continuing power of attorney, the donor should think about whether they would like to provide the donee with more detailed instructions on how to manage certain matters that are important to the donor. Such instructions may be related to selling property, its storage, or the use of the assets.

The donor may give instructions for the remunerations and compensation of expenses paid to the donee in the power of attorney or in the instructions. The donor and the donee may also agree on them between themselves. If they have not been determined or agreed on, the donee has the right to be receive compensation for the necessary expenses resulting from carrying out the responsibilities and a reasonable remuneration, the amount of which is affected by the nature and extent of the responsibility. The instructions issued by the Ministry of Justice for the fee paid to a guardian under the Guardianship Services Act cannot be directly applied to the duty of the donee and the remuneration charged by the donee.

The guardianship authority cannot give the donee more detailed or case-specific instructions for the amount of the remuneration. The amount of the remuneration may be assessed by the authority, for example, in connection with an audit of the accounts or when the donee’s activities have been reported to the authority.

You must draw up the power of attorney in writing and in a standard format. It must be signed in the presence of two impartial witnesses who are present at the same time. The continuing power of attorney must fulfil certain formal criteria to be considered a continuing power of attorney and not a usual power of attorney. 

The continuing power of attorney must indicate the person who has made the power of attorney (donor) and the person to whom the donor gives the right to represent them in the management of their affairs (donee). The power of attorney should indicate the matters in which the donee has the right to represent the donor. For example, the donor may give the donee the right to take care of their property and other financial matters and their personal matters, such as health care and medical care. Very detailed instructions on how the property and matters should be managed can often be included in the power of attorney, such as instructions concerning the selling of immovable property, gifts given from the donor’s assets, the remuneration paid to the donee, the compensation of the donee’s expenses and the supervision of the donee’s activities. Before the appointment of the donee, it is advisable to check with the person concerned that they are prepared to accept the responsibility when this is required. 

Instructions according to which the power of attorney will enter into force when the donor becomes incapable of managing his or her affairs because of an illness, disturbance of mental capacity, declining state of health or some other similar reason must be included in the continuing power of attorney. 

It is recommended that the donor should use the services of a specialist when making a continuing power of attorney because the format of the document must comply with certain criteria. However, this is not necessary, and it is also possible to draw up the document independently, as long as the donor makes sure that the continuing power of attorney meets the criteria set out for it in legislation.

A continuing power of attorney must be drawn up in writing and the person who drew it up must also sign it himself or herself. When the power of attorney is signed, two impartial witnesses must be present at the same time and also sign the document. 

A continuing power of attorney is an excellent means to prepare for the management of your affairs when your own functional capacity begins to deteriorate. A continuing power of attorney document should be drawn up even when it is possible that a person will never need to use power of attorney. On the other hand, situations in which power of attorney is needed may present themselves very quickly.

The affairs that must be managed are usually very ordinary daily matters, such as the payment of bills and managing property. The donee may be required to handle very important matters as well such as the sale of real property, housing shares or vehicles. If the donor has a business, the donee may, if necessary, take measures to organise the business activity. Examples are easy to find and list. 

For example, banks, law firms and legal aid offices can provide help in preparing a power of attorney document and advice on the content of a power of attorney.

The role and duties of the guardianship authority do not include providing advice on the content of the power of attorney or the preparation of a power of attorney. The guardianship authority acts as the authority that confirms power of attorney, and in connection with this task, it provides general instructions on matters concerning the power of attorney and instructions on the confirmation of the power of attorney.

The power of attorney must be provided in writing and two other qualified witnesses must both be present when the donor signs the document or when the donor acknowledges that their signature is on the document. After this, the witnesses must sign the document to indicate that they have witnessed it and the witnesses must be aware that the document in question is a power of attorney.

The power of attorney document must also provide the following information

• the purpose of the power of attorney
• the affairs in connection with which the donor has given the donee the right to represent them
• the donor and the donee
• the order according to which the power of attorney will enter into force when the donor becomes incapable of managing his or her affairs because of an illness, disturbance of mental capacity, declining state of health or some other similar reason (terms on the entry into force).

We recommend that you contact an expert for help when preparing a power of attorney document.

The power of attorney may specify a deputy donee in case the primary donee is temporarily unable to handle their tasks due to illness, disqualification, or another reason. The power of attorney may also specify a secondary donee in case the donee does not consent to taking on the task, resigns from the task or becomes permanently disqualified from handling the tasks of the donee.

There is no one specific model available for a power of attorney document, and the guardianship authority cannot provide one. There are possible models for a power of attorney available online. However, due to the personal nature of the power of attorney, it is a good idea to contact an expert so that all the matters required by an individual are taken into account in the power of attorney.

However, the power of attorney document must contain the following information:

• the purpose of the power of attorney
• the affairs in connection with which the donor has given the donee the right to represent them
• the donor and the donee
• terms on the entry into force according to which the power of attorney will enter into force when the donor becomes incapable of managing his or her affairs because of an illness, disturbance of mental capacity, declining state of health or some other similar reason.

In addition, the following requirements apply:

• power of attorney must be provided in writing
• two other qualified witnesses must both be present when the donor signs the document or when the donor acknowledges that their signature is on the document
• after this, the witnesses must sign the document
• the witnesses must be aware that the document in question is a power of attorney

Two witnesses are needed to witness the granting of power of attorney. They must both be present when the donor signs the power of attorney or when the donor acknowledges that their signature is on the document. After this, the witnesses must witness the document by signing it themselves. The witnesses must know that the document in question is a power of attorney, but the donor does not need to disclose the content of the document to the witnesses.

Witnesses must write their date of birth, contact details and the time and place of witnessing next to their signature. They must state that they were both present at the same time when the power of attorney was made. In addition, they must enter a notification of the donor’s capability of understanding the meaning of the power of attorney and other matters that they consider to affect the validity of the document.

The role of a public notary in verifying a signature is narrower than that of a witness to a power of attorney. For this reason, a public notary will not act as a witness to the power of attorney.

The other employees of the Digital and Population Data Services Agency will not act as a witness to the power of attorney in order to avoid possible disqualification situations. A witness must always also assess the donee's capacity to understand, which is why the witness must always be familiar with the donor certain degree. This is another reason why the agency's employees cannot be a witness to clients' power of attorney.

Any person who is at least 18 years old and has the capacity to understand the significance of continuing power of attorney has the right to grant continuing power of attorney. A diagnosis in itself or when it has been given are not relevant. The person’s ability to understand is what is most important.

A person may be eligible to grant continuing power of attorney in individual cases even when they have lost the ability to manage their own affairs to the extent that the power of attorney can be put in practice immediately after it has been granted.

When necessary, a doctor can issue a statement on whether the person is able to understand the significance of continuing power of attorney in spite of their diagnosed disease.

A person can use a continuing power of attorney to appoint a donee who will manage their affairs in the future when they are no longer capable of managing them. The person making the power of attorney (donor) can appoint a person they trust to manage their affairs in the future (donee). The donee can only be a natural person, i.e. a living person. The donee must be at least 18 years old at the time the continuing power of attorney is confirmed for them.

Continuing power of attorney cannot be confirmed, if there are reasonable grounds for suspecting that the donee is unable or unsuitable to act as donee. For example, if the a guardian has been appointed for the donee themselves, this may indicate that the donee is unable to act as donee. If a person has been found guilty of a crime, this may indicate that they are unsuitable to act as donee. When assessing the suitability of the donee, consideration is also given to whether the donee’s personal financial matters have been appropriately managed. For this purpose, the guardianship authority may check the donee’s enforcement or credit information.

As such, the law does not limit the number of donees. If there is more than one donee and they have the same task, it would be a good idea for the continuing power of attorney to specify whether any of the donees can represent the donee alone or whether the donees must act together. It is a good idea to consider this issue from a practical point of view, for example, don the donees always need to visit the bank / an authority together or can one of the donees act alone.

The continuous power of attorney is drawn up for the future and circumstances may change between when the document was drawn up and its confirmation. A secondary donee should be appointed in the continuous power of attorney in case the actual donee becomes permanently incapable of acting as a donee or is not willing to accept the responsibility. Several secondary donees can be appointed. In that case, the order in which the donor would like them to take on the responsibility should be mentioned in the power of attorney.

A replacement donee should also be indicated in the power of attorney. A replacement donee is needed when the actual donee is temporarily incapable of carrying out the responsibility, for example, because of an illness. The actual donee may also be temporarily prevented from carrying out the responsibility because of being disqualified for attending to a matter. Therefore, the replacement donee appointed in the power of attorney should be a person outside the closest family, who is not disqualified for attending to the matter. A conflict of interests may arise in the division of property or in the division of inheritance or when the donor’s property is sold.

A witness must be an adult and understand what it means to act as a witness. They must also be impartial.

An impartial witness means that the witness must not be closely related to the donor or the donee. If several donees are appointed in the power of attorney, the witness must not be closely related to any of them. If a witness who is not impartial has witnessed the power of attorney, the guardianship authority cannot confirm the power of attorney. It is therefore important that the signatory of the power of attorney is impartial. Under the law, the donor and the donor’s spouse are disqualified as witnesses. Disqualified witnesses also include a child, sibling, parent or grandparent of the donor or of the donor’s spouse or the spouse of such a person. The donee appointed in the power of attorney and the donee’s spouse are also disqualified. Similarly, a child, grandchild, sibling, parent and grandparent of the donee or of the donee’s spouse and the spouse of such a person are disqualified as witnesses. The spouse means married spouses and persons who live in a shared household in marriage-like conditions or in some other partnership. Half-relatives are regarded as the corresponding relatives.

The witness to the power of attorney must also be unexceptionable to act as witness at the time the continuing power of attorney is drawn up, meaning a witness may not be:

• the donor’s spouse
• the child, grandchild, sibling, parent or grandparent of the donor or the spouse of such a person
• the donee or their spouse
• the child, grandchild, sibling, parent or grandparent of the donee or the donee’s spouse or the spouse of such a person

Spouse refers to married spouses and persons who live in a shared household in marriage-like conditions or in some other partnership. Half-relatives are regarded as the corresponding relatives.

Therefore, the donor’s or donee’s brother-in-law or the cohabiting partner of their granddaughter cannot act as a witness regardless of whether or not they are married. 

Witnesses should write their date of birth, contact details and the time and place of witnessing next to their signature. They must state that they were both present at the same time when the power of attorney was made. In addition, they must enter a notification of the donor’s capability of understanding the meaning of the power of attorney and other matters that they consider to affect the validity of the document.

The witnesses must be aware that the document is a continuing power of attorney but they do not need to know its content.