Think About the Future: How to Legally Protect Yourself and Your Family in Case of Loss of Capacity

It is a topic that is not easy to talk about, whether it concerns ourselves or our loved ones. The truth, however, is that such a situation can happen to anyone. As a result of an injury, a sudden illness or advancing old age, we can wake up one day in a state in which we are no longer able to make decisions for ourselves, express our views and are completely dependent on the care of those around us.

If such a situation occurs unexpectedly, there is nothing we can do. But if we are aware that the ability of our loved one (for example, a grandfather or a grandmother) or of ourselves to navigate legal relations is deteriorating, the time to act is now.

The Trap Called "Unreadiness"

It often happens that the condition of an older person deteriorates sharply and they suddenly cannot express their will. At that moment, their family faces a huge problem. Banks, insurance companies, energy suppliers and landlords will not talk to you, because you have no legal title to do so. You are family, but the contracting party is only your loved one.

What Happens If You Have Not Taken Legal Precautions?

• Cut off from money: You will not have access to the bank account of the ill person.
• Debts piling up: Money may be coming into the account, but you cannot use it to pay the rent or electricity. You must therefore pay the services from your own pocket, or debts and penalties will accrue that you cannot prevent.
• Lengthy court proceedings: Without a power of attorney, the only option is to go to court and apply to be appointed as a guardian. This process, however, can drag on for many months or even a year, during which you are practically in a hopeless situation.

Legal Tools That Will Untie Your Hands and Those of Your Family

Fortunately, our legal system offers several elegant ways to prevent these crisis situations and ensure that the family can act immediately if necessary.

General Power of Attorney — The Fastest and Most Universal Solution

If your loved one is still able to clearly express their will, a general power of attorney is the best and simplest option for protecting the family in advance. The authorised person (for example, a child) thereby gains the authority to handle essentially all standard matters at authorities, communicate with insurance companies, energy suppliers or manage bank accounts. It is a flexible tool that, in the event of a sudden deterioration of your loved one's condition, will save you months of waiting for a court decision.

📌 Practical tip for you: In order for a general power of attorney to be accepted without problems at institutions, it must meet certain requirements. You can find a detailed article on the general power of attorney and a verified template to download here.

For cases where a power of attorney alone would not be sufficient in the future, or where the condition of your loved one has progressed to the point where they are no longer able to sign one, there are further related legal institutes:

Preliminary Declaration

This is a very useful institute. It allows you, at a time when you are still fully in possession of your faculties, to bindingly determine who should become your guardian if you lose the ability to take care of yourself in the future. Here you can also precisely define how you wish your affairs to be managed, or in what way you should be cared for until a guardian is finally approved by the court.

Decision-Making Assistance

This institute is ideal in cases where the person's condition does not yet require a restriction of their legal capacity, but the person feels that they can no longer cope with more complex matters on their own. It is a milder intrusion into personal freedom. The person chooses their "supporter" (usually a family member), with whom they can consult their decisions. The supporter is then entitled to attend negotiations with them and help them navigate complex situations.

Representation by a Household Member

This option is intended for situations in which a person is unable to act in law due to a mental disorder (for example, senile dementia) and does not have another representative appointed. It allows their spouse, child, parent or another person living with them in the same household to represent them in handling ordinary matters. Although this type of representation must be approved by the court, it is a significantly simpler and faster process than the classic restriction of legal capacity.

Think About the Future in Time

Legal protection for the case of losing the ability to decide should be addressed at a time when the person is fully legally capable of acting. Precisely then, they have the opportunity to determine who will help them, who will protect their interests and in what way their affairs should be managed.

Timely setting up of a general power of attorney, a preliminary declaration or another suitable instrument can save your loved ones many worries and prevent complicated court proceedings in the future.