Table of Contents:
- Introduction
- Understanding the Significance of a Durable Power of Attorney
- Limits on the Powers of a Proxy
- Actions Restricted in a Continuing Power of Attorney
- Proxy’s Obligation to Act in Alignment with the Appointor’s Will
- Reporting Requirements for the Proxy
- Actions Requiring Explicit Mention in the Power of Attorney
- Specific Actions Demanding Explicit Authorization
- Special Considerations for Psychiatric Examinations and Treatments
- Handling Donations, Gifts, and Loans
- Legal Actions Requiring Certification
- Actions That Cannot Be Included
- Actions That Must Be Performed Personally
- Exclusions in Power of Attorney
- Actions Requiring Court Approval
- Investment of Funds
- Rules and Requirements for Fund Investments
- Proxy’s Responsibility for Informed Investment Decisions
- Resolving Conflict Between the Appointor’s Will and Instructions
- Reporting by the Proxy
- Reporting to Informed Persons
- Reporting to the General Custodian
- Conclusion
- Recap of Key Points
This page lists the actions that a power of attorney in a continuing power of attorney cannot perform, the actions that must be explicitly permitted in the power of attorney, and the actions that require court approval even if they are mentioned in the power of attorney
In material medical or material personal matters, the power of attorney must not act against the will of the appointor
The power of attorney must report on decisions or actions he has taken in matters of the power of attorney, in accordance with the conditions established by the power of attorney
A durable power of attorney is designed to give the power of attorney the opportunity to make decisions for those who are no longer able to make them.
- There are actions that cannot be performed at all within the framework of a continuing power of attorney, there are those that require an explicit mention in the power of attorney, and there are some that even if explicitly mentioned in the power of attorney, the court will be required to approve them. This page lists these types of operations.
- In addition, the power of attorney should report on decisions or actions he has taken in matters of the power of attorney, as detailed below.
- In any case of doubt as to how to act, the power of attorney may turn to the court to receive instructions.
| Action | Details |
| Pension product operations | Explicit mention required for certain actions |
| Psychiatric examinations and treatments | Requires specific authorization and psychiatric explanation |
| Donations (up to NIS 100,000) | Must be specified in the power of attorney |
| Non-customary gifts (up to NIS 100,000) | Explicit mention needed for these types of gifts |
| Loans (up to NIS 100,000) | Specific mention required for loans |
| Legal actions (NIS 100,000 – NIS 500,000) | Certification needed for actions within this value range |
Actions that require an explicit mention in the power of attorney
- There are actions that require explicit certification in the power of attorney, and if they were not specifically mentioned, the power of attorney will not be able to perform them even if they are included in the field for which he was generally granted powers to act:
- Carrying out operations in pension products (for example, switching between pension entities and between pension instruments or changing the investment route of the pension savings funds). Despite this, the power of attorney may make withdrawals from provident funds and training funds and submit an application for a pension allowance in the name of the power of attorney.
- Giving consent for a psychiatric examination, psychiatric treatment or hospitalization in a psychiatric hospital, or for release from said hospitalization.
- If at the time the procedure is required, the appointing person objects to its execution, the procedure cannot be performed even if he agreed to it in advance, unless the continuing power of attorney was also signed before a psychiatrist, and the appointing person expressly authorized the power of attorney to give consent despite his objection.
- When signing such a power of attorney, the psychiatrist should explain to the appointing person the meaning of the consent and its results, and get the impression that the power of attorney was given with free and voluntary consent, without unfair pressure or influence being exerted and without taking advantage of distress or weakness.
- In such a case, the proxy’s consent to hospitalization for up to 48 hours, or until the person is able to give informed consent, will be valid, whichever comes first.
- Donations in an aggregate amount of up to NIS 100,000 and to those specifically mentioned up to the amount stipulated in the power of attorney.
- Gifts that are not customary, in an aggregate amount of NIS 100,000 and to those specified in the power of attorney and in the specified amount.
- Loans in an aggregate amount of up to NIS 100,000 and to those specifically mentioned up to the amount stipulated in the power of attorney.
- Another legal action or several related legal actions, the total value of which exceeds 100,000 NIS and does not exceed 500,000 NIS.
| Action | Explanation |
| Personal actions (e.g., divorce) | Proxies cannot perform these actions |
| Conversion of religion | Excluded action |
| Guardian or proxy for another | Cannot act as a guardian for another |
| Giving up a child for adoption | Not allowed |
| Participation in elections | Excluded action |
| Medical decisions under dying patient law | Proxies cannot make these decisions |
pay attention
Investment of funds does not require an explicit mention in the power of attorney, but there are specific rules regarding it as detailed below.
Actions that cannot be included and will not be given effect even if mentioned
- The power of attorney cannot perform these actions on behalf of the person:
- Actions that must be performed personally, such as granting a divorce.
- conversion of religion.
- To make decisions or perform actions that the power was authorized to do as proxy or guardian for another.
- Giving consent to give up a child for adoption.
- Participation in elections.
- Actions or expressions of desire according to the dying patient law, such as: consent to tests, surgeries, resuscitation, connection (only) to the ventilator, chemotherapy treatments, radiation or dialysis, etc. (For the purpose of these actions, a power of attorney must be drawn up to make decisions about medical treatment for a dying patient).
- Drawing up a will in the name of the executor and determining beneficiaries regarding amounts to be paid due to the person’s death, such as: determining the names of beneficiaries in provident funds, education fund, pension fund, managers’ insurance, life insurance policy, etc.
| Action | Details |
| Real estate transactions | Requires prior court approval |
| Transfer or liquidation of a financial unit | Court approval needed for these actions |
| Donations exceeding power of attorney limit | Must be approved by the court if not in the power of attorney |
| Withdrawal from provident funds | Court approval required for specific circumstances |
| Giving a guarantee or loan | Court approval needed if not authorized in the power of attorney |
| Large-scale legal actions | Actions exceeding certain values require court approval |
- Actions that can be included but will require court approval for their implementation
- The following actions, as well as the commitment to perform them, require the prior approval of the court:
- Transfer, encumbrance, distribution or liquidation of a financial unit in agriculture, industry, craft or trade, or of an apartment.
- A real estate transaction, with the exception of renting a property for a period not exceeding five years, to which the provisions of the Tenant Protection Law do not apply.
- Check or encumbrance of a right to receive a right in real estate.
- Rent to which the Tenant Protection Law applies.
- Relinquishment of a part of the estate or transfer or encumbrance of a part or part of the estate.
- Donation in an amount that exceeds the amount stipulated in the power of attorney or in an amount that exceeds NIS 100,000, as long as it has been authorized in the power of attorney.
- A gift that is not customary in the circumstances of the case and was not given express consent in the power of attorney.
- A gift that is not customary in the circumstances of the case, that exceeds the amount specified in the power of attorney or that exceeds NIS 100,000.
- Another legal action, including several actions related to one transaction, the value of which exceeds NIS 500,000 if certification was given in the power of attorney, or NIS 100,000 if no certification was given.
- Withdrawal of funds from a provident fund contrary to the provisions according to section 23 of the Law on the Supervision of Financial Services (Provident Funds), for example, withdrawing funds in one payment that is not from the compensation component or not by capitalizing a budget pension allowance, or not at the times and under the circumstances that the law permits to withdraw the funds from a fund Providence, as well as the encumbrance or garnishment of those funds.
- Giving a guarantee or giving a loan, if they were not authorized by the power of attorney.
- Providing a loan that has been certified, in an amount that exceeds the amount stipulated in the power of attorney or in an amount that exceeds NIS 100,000.
| Investment Scenario | Guidelines and Responsibilities |
| Explicit instructions and limitations provided | Proxy must follow the specified instructions and limitations |
| Extensive authority for investments | Proxy can make investment decisions without limitations |
| Responsibility for informed investment decisions | Proxy should invest funds to meet appointor’s needs and preserve assets |
| Listening to and consulting with the appointor | Proxy must engage in dialogue with the appointor regarding investments |
| Resolving conflicts between wills and instructions | Instructions take precedence only if the appointor specifies so |
pay attention
Investment of funds does not require approval from the court, but there are specific rules regarding it as detailed below
Investment of funds from the appointee
- If preliminary instructions and limitations were given in the power of attorney in connection with the investment of funds – the power of attorney must act in accordance with the instructions and limitations.
- In the following cases, the power of attorney is authorized to invest the funds at his sole discretion (both in terms of the method of investment and in terms of the amounts):
- If preliminary instructions were given in the power of attorney according to which the power of attorney has extensive authority regarding the investment of funds without any limitation.
- If in the beautification of the And the continuing one, the power of attorney was given the authority to act in property matters and there is no specific reference to the subject of financial investments.
| Reporting Aspect | Key Details |
| Reporting to Informed Persons | Appointor designates individuals to whom the proxy reports actions |
| Delivery of the power of attorney copy | Appointor may request the copy of the power of attorney be shared |
| Reporting obligations | Reporting frequency and method determined by the appointor |
| Information requests by informed persons | Those designated can demand information on proxy’s actions |
pay attention
- The power of attorney is responsible for exercising discretion in investing the funds in an informed manner so as to ensure that the current and special needs of the assignor are adequately met, taking into account the extent of the assets and the benefit of preserving the fund and ensuring the fruits (profits).
- As a general rule, the power of attorney is responsible for listening to the appointee, sharing with him and consulting with him regarding the investment of the funds.
Conflict between the will of the appointer and the instructions in the power of attorney
- Even in cases where a lasting power of attorney comes into effect, it is still possible that the appointing person is able to express his will.
- In the event of a contradiction between the contemporary will of the appointor and the instructions he gave, the instructions will prevail only if the appointor stated in the continuing power of attorney that the instructions should be preferred over his current will.
- Regarding psychiatric examination or treatment in the aforementioned case, see the paragraph regarding actions that require an explicit mention in the power of attorney.
- Please note: in the case of a substantial personal matter or a substantial medical matter – the power of attorney must not act contrary to the present will of the appointer!
- In any case of doubt as to how to act, the power of attorney can turn to the court for instructions.
| Reporting Aspect | General Guardian Involvement |
| Proxy’s option to report to the guardian | Proxy may choose to report actions to the general guardian |
| Notification to the general guardian | Notification to the general guardian upon power of attorney deposit |
| Proxy’s reporting obligations | Proxy takes on reporting responsibilities similar to guardians |
Report of the power of attorney on his actions
Report to an informed person
• The power of attorney (the appointor) shall indicate in the continuous power of attorney the name of one or more persons (informed persons), to whom the power of attorney will report on decisions or actions taken on the issues the power of attorney deals with.
• The appointer may determine that a copy of the power of attorney will be delivered to the informed person.
• The informed person will not be a relative of the proxy (unless the proxy is a relative of the appointor).
• The report will be made at the times and in the manner determined by the appointer, unless the appointer expressly stated otherwise.
• The informed person may demand from the power of attorney information about decisions he made and actions he took on the subjects detailed in the power of attorney.
Report to the General Custodian
- The power of attorney (appointee) may stipulate in the continuing power of attorney that the power of attorney will report his actions to the general guardian.
- The person who stipulated this in the continuing power of attorney will notify the general guardian upon depositing the power of attorney.
- In this case, from the day the power of attorney enters into force, the reporting obligations that apply to guardians will apply to the power of attorney (unless he is granted an exemption from reporting by the general guardian).
| What are some actions that require explicit mention in a power of attorney document? | Actions such as pension product operations, psychiatric examinations and treatments, donations (up to NIS 100,000), non-customary gifts (up to NIS 100,000), loans (up to NIS 100,000), and legal actions (NIS 100,000 – NIS 500,000) need to be explicitly mentioned in a power of attorney document. |
| Can a proxy perform actions that must be performed personally, like granting a divorce or participating in elections on behalf of the appointor? | No, proxies cannot perform actions that must be done personally, including granting a divorce, conversion of religion, and participation in elections, among others. |
| When are court approvals required for actions mentioned in a power of attorney? | Court approvals are required for specific actions, such as real estate transactions, large-scale donations exceeding power of attorney limits, and certain financial transactions mentioned in the power of attorney. |
| What responsibilities does a proxy have when it comes to the investment of funds? | Proxies must exercise discretion when investing funds to meet the appointor’s needs, preserve assets, and ensure profits. They should also engage in dialogue with the appointor regarding investment decisions. |
| Can the appointor’s current will override instructions in a power of attorney document? | If there’s a contradiction between the appointor’s current will and instructions in the power of attorney, the instructions will prevail only if the appointor specified that they should take precedence in the document. |
| Who can be designated as informed persons for reporting by the proxy? | Informed persons designated by the appointor are individuals to whom the proxy reports actions. They should not be relatives of the proxy unless the proxy is a relative of the appointor. |
| Under what circumstances does the proxy report to the general guardian, and when does this reporting begin? | The proxy may stipulate in the power of attorney that they will report their actions to the general guardian. Reporting to the general guardian begins from the day the power of attorney takes effect, and the reporting obligations align with those applicable to guardians unless exempted by the general guardian. |
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