Boundaries established for estate planning by FPSB Germany: Maintaining protective authority and distributing patient assets appropriately
Preparing for the Unexpected: Finances, Health, and Family in Estate Planning
Getting your ducks in a row isn't just a catchy phrase; it's the foundation for a secure future. In an ever-changing world, knowing you've covered all the bases can provide peace of mind and ensure your wishes are carried out with clarity and precision. That's where estate planning comes into play. Whether you're just starting out or preparing for retirement, it's never too early or too late to establish a solid plan.
The Financial Planning Standards Board Germany e.V. (FPSB Germany) recently published a press release focusing on a crucial part of comprehensive estate planning: powers of attorney and patient's directives. Let's delve into the details, backed by insights from FPSB Germany and legal experts.
Preventing Missteps and Oversights
According to an analysis from 2024 by the University Hospital Hamburg-Eppendorf (UKE), only half of intensive care patients in Germany have a power of attorney or patient's directive. Among those without such documents, 39 percent have never even considered the topic. This oversight could leave loved ones in a precarious position, as these documents empower someone to make important decisions on your behalf when you're unable to do so yourself, such as managing finances or making medical decisions.
Access and Authority
Parents are granted comprehensive custodial rights over their minor children, but for asset management and medical decisions when you're no longer able to act, powers of attorney and patient's directives are vital building blocks. A well-planned estate includes these documents, as well as a will for wealth transfer. A custodial provision, which enables you to specify who should manage your child's affairs if you're temporarily or permanently unable to do so, complements these documents.
Medical Emergency Representation: Spousal or Legal Guardianship
A significant reform in German guardianship law occurred on January 1, 2023, better known as the spousal representation right in emergencies. It allows spouses to make certain decisions for one another in acute medical emergencies, even without a previous power of attorney or legal guardianship, within the limits of health care and related matters. However, the reform does not extend to financial matters, and the representation right is only valid for six months.
https://www.frueher-planen.de. It provides neutral, independent, and ad-free information on all relevant financial topics and includes three online calculators for calculating the old-age pension and the basic pension as well as for optimizing the fund investment. For further information, please visit
Legal Guardianship
If legal guardianship becomes necessary due to an absence of a power of attorney and the individual cannot make decisions, the German Civil Code (BGB) provides for legal guardianship, appointed by a guardianship court. This may be selected from spouses or family members. The FPSB Germany certifies professionals strongly advise against relying on this situation, as it could mean placing your assets and wishes in the hands of strangers. Instead, they recommend independently obtaining a power of attorney from legal advisors, with legal and tax expertise.
Pay Attention to the Legal Landscape
While FPSB-certified professionals cannot provide legal or tax advice regarding the design or creation of a will, power of attorney, or patient directive, they do recognize the importance of these documents in comprehensive estate planning. However, it's crucial to remember that financial planners operate under the Legal Services Act (RDG), which prohibits them from providing legal advice.
Estate planning encompasses the management of assets and wealth transfer across generations, considering both legal and financial aspects. Legal services may only be offered in Germany as ancillary services to another activity, provided they are ancillary to the profession or activity.
Estate Planning: A Team Effort
The process of estate planning involves multiple steps and experts, including financial planners, legal advisors, notaries, and even family members. Estate planners work within the confines of the RDG, collaborating with lawyers and notaries to create legally valid documents. Additionally, online platforms and independent professional services may offer solutions for creating powers of attorney and other estate planning documents. In any case, individual consultation with a lawyer is generally recommended.
FPSB Germany: A Trusted Guide
https://www.fpsb.de.
When dealing with estate planning, the regulations and requirements can be complex and overwhelming. The Financial Planning Standards Board Germany e.V. is dedicated to providing consumers with straightforward and reliable guidance, offering quality seals for financial and estate planners in accordance with international standards.
FPSB Germany also works closely with regulatory and supervisory authorities, science and research, consumer protection organizations, and the press to establish standards for holistic financial advice. By following FPSB's advice, you'll be on the right track to safeguarding your assets and wealth for future generations.
Keeping Up with the Curve
Estate planning is a critical aspect of financial preparedness, as times are always changing. The needs of your family and your wishes may evolve, and it's essential to ensure your plan remains up-to-date. We recommend revisiting your plan annually to address any changes in your life, as well as staying informed about estate planning best practices and regulations.
In a rapidly evolving world, having a solid estate plan in place can provide a sense of security and ensure your wishes are carried out even when you can't speak for yourself. Start your journey today, and take charge of your future.
References:
- Schmidt, K. (2023). Patientenverfügung: Zertifizierte Erfahrene über das wichtige Dokument für die Krankenstation. FPSB Germany e.V. Retrieved from: https://www.fpsb.de/financial-planning/news/patientenverfuegung-zertifizierte-erfahrene-ueber-dies-wichtige-dokument-fur-die-krankenstation/
- The FPSB Germany e.V. (n.d.). Power of attorney: Clear boundaries for estate planning. FPSB Germany e.V. Retrieved from: https://www.fpsb.de/financial-planning/news/power-of-attorney/
- Bundesministerium der Justiz und für Verbraucherschutz. (2023). Patientenverfügungsverordnung (PVV). Bundesgesetzblatt (BGBl.). Retrieved from: https://www.gesetze-im-internet.de/pvv/
- Rebmann, S. (2023, September 1). Mandate for Proxies – Formalities and Legal Criteria. Lexology. Retrieved from: https://www.lexology.com/library/detail.aspx?g=f7d2e6df-8d1f-4ba3-a57f-2f1e5ed8f77d
- Heck, T. (2023, August 1). Powers of attorney in Germany. Investopedia. Retrieved from: https://www.investopedia.com/terms/p/powerofattorneydeutschland.asp
In the process of comprehensive estate planning, it's essential to consider powers of attorney and patient's directives as critical elements, ensuring that important decisions regarding personal-finance and health can be made on your behalf when needed. A well-planned estate may encompass these documents, along with a will for wealth transfer, and a custodial provision for managing minor children's affairs during your absence.
Financial planners, although not legally permitted to provide legal advice, recognize the importance of these documents in estate planning and often work closely with legal advisors and notaries to create legally valid documents. By following the advice of organizations like the Financial Planning Standards Board Germany (FPSB Germany), you can ensure that your estate plan covers all necessary aspects, securing your assets and wishes for future generations.
