Following an accident or serious illness, you could find yourself in a difficult position if you are no longer able to conduct your own affairs. What provisions can be made?
Legal progress in Luxembourg
Luxembourg law does not currently provide for any measures for individuals to protect themselves against the risks associated with surviving an accident, illness or incapacity. However, the law is expected to be changed in this regard in the near future. Drawing on the ‘lasting power of attorney’ laws that have been in place in France and Belgium for a number of years, Luxembourg’s Justice Minister, Sam Tanson, presented a draft law on this subject on 11 January.
What is a lasting power of attorney?
The draft lasting power of attorney law is designed to provide a solution for people who want to make arrangements to protect themselves and their wealth. In practical terms, it is an extrajudicial instrument enabling a person to protect themselves in the event of an accident by granting a power of attorney to someone who will protect their assets and interests should they be unable to conduct their own affairs.
Who can arrange for a power of attorney?
Anyone aged 18 or over residing in Luxembourg, of Luxembourg nationality or having assets in Luxembourg. This type of power of attorney can also be arranged by the parents of a child with a serious disability in order to protect their child’s assets and interests after the parents’ death.
Who can be granted power of attorney?
The person arranging the power of attorney designates the particular structure for their future protection. They can choose any person aged 18 or over and they themselves define the parameters of the arrangement, and the rights, obligations and limits granted to the person in question.
How do you draw up a power of attorney?
The power of attorney takes the form of a private contract or notarised deed. A power of attorney by notarised deed has greater scope: it allows for certain actions that are not permitted under the private contract (such as the sale of assets).
The power of attorney is only valid if it is lodged in the civil register kept by the courts.
When does the power of attorney take effect?
The power of attorney only takes effect once the grantor is recognised as incapable, evidenced by a medical opinion or circumstantial certificate (due to loss of memory, illness, accident etc.). The lasting power of attorney applies for as long as the grantor is alive, and is superseded by their will after their death. Do you want to know more?
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