An accident, serious illness or another event can leave a person unable to make decisions or manage their affairs independently. In such a situation, an important question arises: who will take care of your financial and personal matters?
An advance directive allows a person to decide in advance who should represent them if they become incapacitated. This can include financial matters, personal affairs and legal representation.
For comprehensive financial planning, an advance directive can therefore be an important part of personal protection.
What is an advance directive?
An advance directive allows a person with legal capacity to appoint one or more people to represent them if they become incapable of making decisions.
It can cover areas such as:
- personal care
- financial matters
- legal representation
This allows individuals to determine in advance who should manage important matters if they are no longer able to do so themselves.
Why is it financially important?
Personal planning is often associated with pensions, investments and insurance. However, financial planning should also consider what happens if a person can no longer manage their own finances.
Depending on the individual situation, this may involve:
- bank accounts and payments
- investments and securities
- real estate
- mortgages
- insurance policies
- tax matters
- regular bills
- contractual obligations
For people with more complex financial situations, clearly defining who can manage these matters can be particularly important.
What happens without an advance directive?
If someone becomes incapable of making decisions, a relative cannot necessarily take over all financial matters automatically.
Swiss adult protection law provides certain statutory representation rights under specific conditions. However, these are not the same as an individually tailored advance directive.
An advance directive allows a person to define their preferred representative in advance.
The competent adult protection authority examines, among other things, whether an advance directive was validly established and whether the requirements for its effectiveness are met.
Who can be appointed?
One or more suitable people can be appointed.
This could include:
- a spouse
- a partner
- an adult child
- another trusted person
- in certain circumstances, a legal entity
When choosing a representative, personal trust is important. However, the person’s ability to manage financial matters should also be considered.
What financial matters should be covered?
Depending on the individual situation, an advance directive may address:
- bank accounts
- payments
- securities and investments
- real estate
- mortgages
- insurance
- tax matters
- contracts
- other financial obligations
The more complex the financial situation, the more important it can be to define the responsibilities clearly.
How is an advance directive created in Switzerland?
Under Swiss law, an advance directive can generally be established in two ways: it can be written entirely by hand, dated and signed, or established through a public deed.
A document created electronically and merely signed does not satisfy the requirements for a handwritten advance directive.
The exact procedure for public notarisation is partly governed by cantonal law.
Where should it be kept?
An advance directive is useful only if it can be found when needed.
The existence of an advance directive and its storage location can be recorded with the civil registry. The competent adult protection authority can ask the civil registry whether an advance directive exists if this is not otherwise known.
The registration itself does not replace the advance directive.
Advance directive and financial planning
An advance directive should not be considered in isolation.
Comprehensive financial planning may include:
- retirement planning
- wealth management
- insurance
- real estate
- tax planning
- estate planning
- advance directives
Combining these areas can help ensure that financial structures and personal wishes are taken into account if circumstances change.
Review it regularly
An advance directive should be reviewed from time to time.
Relevant changes may include:
- marriage
- divorce
- changes in family circumstances
- acquisition or sale of property
- changes in wealth
- new financial obligations
- changes in the chosen representative
A major change in personal or financial circumstances is a good reason to check whether the document still reflects your wishes.
Conclusion
An advance directive is an important element of personal and financial planning. It allows individuals to determine who should manage their affairs if they become unable to make decisions themselves.
Financial matters deserve particular attention. Bank accounts, investments, real estate, mortgages, insurance and ongoing obligations may all need to be managed.
By reviewing an advance directive regularly and coordinating it with broader financial planning, individuals can create a clearer framework for unexpected situations.
FAQs
An advance directive allows a person to appoint someone to represent them if they later become incapable of making decisions.
A handwritten advance directive must be written entirely by hand, dated and signed. Alternatively, it can be established through a public deed.
Yes. Financial management and legal representation can form part of an advance directive.
The existence of an advance directive and its storage location can be recorded with the civil registry. The document itself is not automatically deposited there.
No. An advance directive can cover personal care, financial matters and legal representation. A living will or patient directive focuses on medical treatment and healthcare decisions.
