How to Execute a Lasting Power of Attorney — Complete Process Steps | Attorney Roziel Amir

What is a Durable Power of Attorney and Why is it Important?

A Durable Power of Attorney is a critical legal document that enables you to transfer financial and personal management powers to another person — an attorney-in-fact — who can act on your behalf even if you lose legal capacity. Unlike a regular power of attorney, which terminates when you lose capacity, a durable power of attorney remains in effect precisely when you need it most — when you are ill, undergoing dementia, or in a situation where you cannot manage your financial affairs independently.

In Israel, a durable power of attorney is governed by the Power of Attorney Law (Attorneys), 5748-1988, and must be approved by a family court or registered with certain official capacity. The durable power of attorney process is not something you can easily do yourself — it requires deep legal understanding, strategic planning, and compliance with strict legal requirements.

Rosil Amir Law Office specializes in providing personalized guidance to families through this process, from the initial consultation phase through the court application submission and implementation of the power of attorney.

What are the Main Steps in the Durable Power of Attorney Process?

The durable power of attorney process is divided into clear and defined stages. Each stage is important and requires careful attention and timely signatures. Let us review each one in detail:

Step 1: Initial Legal Consultation and Goal Setting

Every durable power of attorney process begins with an in-depth legal consultation. At this stage, you and your spouse or family must understand exactly what you want to achieve. Do you want to grant financial powers only (bank management, real estate, investments)? Or do you also need medical powers (decisions regarding medical treatment, receiving medical information)? Or perhaps both?

At this stage, an attorney experienced in the field will help you choose the right attorney-in-fact — a person you trust completely, with sound judgment, and without conflicts of interest. This is the most critical part: choosing the wrong attorney-in-fact can lead to devastating consequences.

Also at this stage, you must understand the legal implications: the attorney-in-fact will be able to act on your behalf, so he or she must be a trustworthy person with complete transparency.

Step 2: Preparation of Legal Documents

After you have decided on the powers and the attorney-in-fact, an attorney will prepare the durable power of attorney document for you. This document must be precise and specific, not general. It must detail exactly which powers you are granting and under what conditions.

For example: "Durable power of attorney for management of bank account no. 123456 at Bank Leumi only" is much more specific than "general power of attorney for financial matters." The more specific the document, the easier it is to prove to a bank or government agency.

The document must also address the effect of loss of capacity: will the power of attorney remain in effect if you lose capacity (this is the definition of "durable"), or will it terminate? Typically, a durable power of attorney is retained precisely when you lose capacity.

Step 3: Signing in the Presence of Witnesses and/or Notary

A durable power of attorney must be signed in the presence of witnesses or a notary. Typically, in Israel, witnesses or a public notary (an attorney authorized for this role) are used. The signature must be made in the presence of at least two witnesses, or with notarial certification.

The witnesses (or notary) must certify that you have full legal capacity at the time of signing, that you are signing of your own free will, and that you understand the meaning of the document. This is a critical step to ensure there will be no challenges to the validity of the power of attorney in the future.

Step 4: Filing an Application with the Court (in certain cases)

In some cases, a durable power of attorney can be effective immediately after signing. However, if you want to ensure that the power of attorney will be accepted by banks, government offices, and other agencies, it is advisable to file an application with the court for approval. This is called a "durable power of attorney order."

Filing the application with the court requires supporting documents: an identity card, a certificate of legal capacity (from a doctor or legal professional), and a detailed report on the circumstances. The court will review the application and decide whether to issue an order.

Typically, this process takes 2-4 weeks, depending on the court's workload. An attorney will handle the entire procedure on your behalf.

Step 5: Notification of the Attorney-in-Fact and Explanation

After the power of attorney is signed and approved (if necessary), you must notify the attorney-in-fact in writing of his or her powers. This is very important: the attorney-in-fact must understand exactly what he or she can and cannot do. It is also advisable to provide him or her with a copy of the power of attorney document and any court order issued.

At this stage, it is also advisable to notify banks, insurance companies, the tax authority, and any other relevant body. This will help ensure that the attorney-in-fact can operate smoothly without delays or unnecessary checks.

Step 6: Preservation and Ongoing Management

Once the power of attorney is in effect, you should keep the original copies in a secure manner (in a bank safe deposit box, for example). It is also advisable to keep a copy with an attorney or with the attorney-in-fact. Additionally, you should periodically check that the attorney-in-fact is managing your assets fairly and without errors.

If at any point you wish to modify the power of attorney (for example, to add powers or replace the attorney-in-fact), you must notify your attorney and create a new file with the amendments.

What Documents Are Required for a Continuing Power of Attorney?

To complete the process of establishing a continuing power of attorney in Israel, you need to prepare a clear list of documents. Here is the complete list:

Basic Documents

• Identity Certificate — yours and that of the attorney-in-fact. A valid copy of the ID card.
• Continuing Power of Attorney Form — the legal document itself, which we can prepare for you.
• Certificate of Legal Capacity — if you are over 70 years of age or if there is suspicion of a capacity issue, a court or physician may require this certificate.
• Witness Attestation — signatures and names of two witnesses who were present at the signing.

Additional Documents (Depending on Circumstances)

• Medical Report — if the power of attorney relates to medical treatment, you need a report from a physician confirming your mental capacity.
• Asset Statement — a list of assets that will be affected (bank accounts, real estate, investments, etc.).
• Court Order — if you requested court approval, this order is part of the required documents.
• Notary Certification — if the signature was executed in the presence of a notary, you need a signed certification from the notary.

Useful Documents for Transmission to External Bodies

• Certified Copy of the Power of Attorney — for sending to banks, tax authorities, insurance companies, etc.
• Notice Letter — a letter from an attorney explaining to third parties about the power of attorney and requesting them to update their records.
• List of Attorneys-in-Fact — if there are multiple attorneys-in-fact (for example, one for financial matters and one for medical matters), it is advisable to provide a clear list.

How Much Does a Continuing Power of Attorney Cost in Israel?

The cost of a continuing power of attorney depends on several factors: the complexity of the matter, the number of powers granted, whether you require court approval, and the attorney's fees. Generally, costs range as follows:

• Initial Legal Consultation: usually free or at a low cost (500-800 NIS) to determine your needs.
• Preparation of Power of Attorney Document: 1,500-3,500 NIS, depending on specificity and complexity.
• Court Approval: an additional 2,000-5,000 NIS, including court fees and legal representation.
• Ongoing Maintenance and Management: generally, if you need future consultation, this will be charged at an hourly rate or a fixed rate.

The law office of Rozil Amir offers competitive rates and professional perspectives. We prefer to offer a free initial legal consultation to understand your needs precisely, and then we can offer you a clear cost plan without surprises.

Scenario Comparison: When Do You Need a Durable Power of Attorney?

A durable power of attorney is not something everyone needs, but there are certain situations where it is critical. Here is a comparison of different scenarios:

Important Tips for the Durable Power of Attorney Process

When you go through the durable power of attorney process, there are several important tips worth remembering:

1. Choose Your Attorney-in-Fact Carefully

This is the most important decision. Your attorney-in-fact must be someone you trust completely, with good judgment, and without conflicts of interest. If you are married, your spouse is a natural choice. If you are single, a close friend or family member may be appropriate. Each case is different.

2. Be Specific About Powers

Do not grant overly broad powers. For example, "authority to manage a bank account at Bank Leumi only" is much safer than "general authority for financial matters." The more specific you are, the less room there is for errors or misuse.

3. Discuss With Your Attorney-in-Fact in Advance

Do not make someone your attorney-in-fact without their knowledge. Talk to them honestly about the powers, their responsibilities, and what you expect from them. This is important to build mutual trust.

4. Keep Original Copies in a Safe Place

Do not keep the original copy of your power of attorney in a regular folder at home. Keep it in a safe deposit box at a bank, or have an attorney store a copy. This will ensure that the document is not lost or damaged if something happens.

5. Update the Power of Attorney When Circumstances Change

If you change your assets (for example, you purchase new real estate), or if you want to replace your attorney-in-fact, update the power of attorney. Do not leave it outdated and irrelevant.

6. Consult With an Attorney at Every Stage

Do not try to do this yourself. A durable power of attorney is a complex legal document, and a small mistake can lead to big problems in the future. An experienced attorney will ensure that everything is done in compliance with the law.