Right to information and invoicing in the case of powers of attorney

If a person (principal) has granted another person (agent) a general and health care power of attorney, there is generally a right to information and accounting from the agent (something different may apply between spouses in particular).

This means that the principal must in principle provide information and account for every legal transaction that the authorized representative carries out for the principal within the scope of the power of attorney. The principal could therefore demand every cash receipt or bank statement.

If the later testator subsequently disinherits the beneficiary of the compulsory portion, the latter is entitled to a compulsory portion. However, when calculating the claim to a compulsory portion, the value of the gift already received is then added to the deceased's actual estate (so-called fictitious estate). The compulsory portion quota of the person entitled to a compulsory portion is then applied to this fictitious estate. The benefit received is then deducted from the value calculated in this way.

This represents a considerable burden for the authorized representative. It should also be noted that the right to information and accounting also passes to the heirs of the principal. This means that the authorized representative is also obliged to provide information and render accounts to the heirs of the principal.

The prerequisite for offsetting is always that an offsetting provision is made before or at the latest when the gift is made to the beneficiary of the compulsory portion. A subsequent agreement is no longer possible. The beneficiary of the compulsory portion should thus be given the opportunity to decide whether or not they wish to accept the benefit with the offsetting provision.

In order to avoid or at least reduce the burden on the authorized representative as described above, it is possible to limit the obligation to provide information and render accounts. This requires appropriate provisions in the power of attorney or in the internal relationship between the principal and the authorized representative.

The above explanation is intended to provide an initial insight into the topic of offsetting against the compulsory portion. It is not a substitute for advice in individual cases.

The above explanation is intended to provide an initial insight into the obligation of the general representative to provide information and render accounts. It is not a substitute for advice in individual cases.

If you have specific questions or would like an assessment of your case, we will be happy to provide you with an initial consultation at any time. The costs of such a consultation amount to a maximum of EUR 190.00 plus VAT. The duration of the consultation and the size of your assets are irrelevant

Status: 09.10.2023