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by Simon Boon
For many people, a continuing power of attorney provides peace of mind. It allows you to decide today who will be authorised to make decisions on your behalf in the future if you are no longer able to do so yourself, for example due to illness, old age or an accident. This may include paying bills, managing bank accounts, selling a property or making a gift.
The Act of 8 November 2023 reforms the status of administrators. From 1 September 2027, the person you appoint under your continuing power of attorney will, in principle, have to fall into one of two categories: a family administrator or a professional administrator. In practical terms, this means that not everyone who can act as an attorney today will still be able to do so from 1 September 2027.
A family administrator does not necessarily have to be a family member in the strict sense. This category naturally includes people such as your spouse, legal cohabiting partner, parent, child or another close relative. However, it may also include someone with whom you have a close personal relationship. A good friend or neighbour may therefore qualify as well.
This is precisely where particular attention is required. The law does not define exactly what constitutes a “close relationship”. It is therefore advisable to clearly explain in the continuing power of attorney itself why you have chosen a particular person and what kind of relationship you have with them. This can help to avoid potential disputes at a later stage.
If you do not appoint a family administrator, the person concerned must be a professional administrator.
Professional administrators are subject to strict eligibility requirements. Only natural persons who have been entered by the Minister of Justice or an authorised official in the National Register of Professional Administrators may accept and carry out such appointments.
Professional administrators must complete recognised theoretical and practical training. This training covers, among other things, the relevant legal rules, the day-to-day management of an administration, communication with the protected person and their family or other people close to them, and the applicable rules of professional conduct.
In addition, professional administrators must subscribe to the code of professional conduct. They must be sufficiently competent, independent and impartial, and must have the necessary material and financial resources. They must also not have served a criminal or correctional sentence.
Do you already have a continuing power of attorney? If so, it is important to determine when that power of attorney is intended to take effect.
Will the attorney only be required to act after 1 September 2027? If so, at that time they will have to meet the requirements for acting as either a family administrator or a professional administrator.
If they do not meet those requirements, there is a risk that the continuing power of attorney cannot be validly exercised. The justice of the peace may then have to appoint an administrator after all. And that is precisely the situation that people generally seek to avoid by putting a continuing power of attorney in place.
So-called “ad hoc” attorneys appointed under a continuing power of attorney also deserve particular attention.
An ad hoc attorney is a neutral party who can make decisions when the principal attorney has a conflict of interest with the person granting the power of attorney. A classic example is a child who has been appointed as attorney and is required to make a decision concerning a gift to themselves.
Logically, these ad hoc attorneys will also have to comply with the new statutory requirements.
From 1 September 2027, new requirements will apply to those who may act as attorneys under a continuing power of attorney. Family members and people with whom you have a close personal relationship will, in principle, remain eligible. Other, more external trusted persons will henceforth be subject to the stricter statutory quality requirements applicable to professional administrators.
A continuing power of attorney remains an extremely useful instrument, but carefully choosing your attorney and clearly describing their role will become even more important.
Do you already have a continuing power of attorney? Make sure you have it reviewed in good time to determine whether the attorneys you have appointed will still be able to act under the new rules. Are you drawing up a new continuing power of attorney? If so, it is advisable to take account today of the rules that will apply from 1 September 2027.
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Simon Boon
Senior Advisor Legal simon.boon@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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