Since a few years ago, there is the possibility to assign a relative to handle financial matters for those who cannot manage on their own. A new law on so-called future authorizations came in 2017 – the idea was that one should be able to appoint someone while being healthy. But maybe it did not become quite as problem-free as intended.
Be on time
It is necessary to arrange the future authorization in time. To be able to assign someone to handle the affairs, one must be completely clear in the head and know what one is doing.
Many realize that the future authorization is needed only when the disease sneaks up, says Arne Larsson, lawyer at Familjens Jurist.
Then it is too late, the banks become suspicious if it is a short time between the authorization being drawn up and coming into force. Instead of being a rescue, the future authorization can become a wrestling match with the bank, and it is not possible to correct anything then, he explains.
The conflict of interest problem
Many have written a future authorization to their spouse to enable the healthy one to sell the couple's old home and make a move possible. But it does not always work that way, explains Caroline Törnquist, family lawyer at Nordea. The spouse with the future authorization is considered to have a conflict of interest if the house is owned by both of them.
No, there is a conflict of interest rule that means you cannot sell a house if there is even a risk of conflict of interest. Then the authorization does not apply, she says.
Arne Larsson explains that it was the Lantmäteriet that changed its practice a few years ago.
Then someone objective, who is not conflicted, must be appointed. A guardian, but that was exactly what one wanted to avoid with the law on future authorizations when it came, says Caroline Törnquist.
Clarity
Arne Larsson points out that the authorization can mean a very great power for the one who receives the assignment, and therefore must be very clear. One needs to think carefully about how one wants it to apply, for example, whether it should include the right to give away gifts or sell a home. It is possible to set limits. It is also possible to appoint several people who receive the authorization, either together or separately.
One puts their entire economy in the hands of the one who receives the authorization. It must be someone you trust, says Arne Larsson.
Caroline Törnquist tells that it is common for unclear authorizations to create problems.
There are templates for future authorizations to download, including from the Bank Association. But it is necessary to check carefully so that they cover what one really wants. Both say that it is not always necessary to hire a lawyer to draft the authorization, but it is necessary to be meticulous and super clear – what is it that the one who receives the authorization should be able to do?
One needs to take the time to think through what the needs are. It depends on one's own situation and what one owns, says Caroline Törnquist.
Witnesses and signatures
There are some formal requirements that are important, such as that two witnesses are required to witness the signing at the same time. Here it is meticulous, they both emphasize.
It is important that the witnesses can attest that the authorization is written on one's own initiative, not because the relatives want it, says Arne Larsson.
Piece of paper
As the rules for future authorization are currently designed, it must be written on paper and shown in original to the bank. A huge hassle, Caroline Törnquist thinks, because it is not registered anywhere.
We banks can never know if it has been revoked, or if it still applies. It is stated in the law that it can be revoked, she says.
The paper form also makes it difficult to handle ordinary bank matters digitally.
The future authorization must be shown. But then one has to go to the bank to handle bank matters, says Arne Larsson.
Nordea has created its own solution, with its own variant of authorization that only applies to the economy and Nordea. It is registered with the bank, explains Caroline Törnquist. In this way, the one who has the authorization can handle matters for the relative with their own bank ID.
Other banks also have different types of authorization solutions.
