What is a Durable Power of Attorney?

A durable power of attorney is a legal document that allows a person (the principal) to transfer legal powers to another person (the agent) — even if the principal becomes incapacitated or loses consciousness. Unlike an ordinary power of attorney, which is automatically terminated when the principal loses capacity, a durable power of attorney remains in effect and enables the management of important matters — financial, medical, legal — without the need for lengthy and expensive guardianship proceedings.

This is an essential tool for responsible family planning, especially for elderly individuals, those suffering from chronic illnesses, or those who wish to ease their family's burden in emergency situations. This document clearly defines who may act on your behalf, in which matters, and what limitations or conditions apply.

Importance of a Durable Power of Attorney

In cases of paralysis, dementia, stroke, or any serious medical condition, friends and family members may encounter legal barriers when attempting to manage bank accounts, sign contracts, or make medical decisions. Without a durable power of attorney, a court may impose guardianship — a process that is lengthy, expensive, public, and damaging to the person's dignity. A durable power of attorney prevents this situation and preserves personal autonomy.

Who Needs a Durable Power of Attorney?

• People aged 60 and over — as preparation for potential medical scenarios
• People with chronic medical conditions — diabetes, high blood pressure, heart disease
• Those with substantial assets — homes, bank accounts, investments
• Single parents — sometimes you need to appoint a guardian for minors in case of emergency
• Business owners — to ensure continuity of business operations

Legal Process — Steps Until Signature

Preparing a lasting power of attorney requires careful planning and compliance with strict statutory requirements. Any mistake or procedural breach may render the document invalid, resulting in additional legal costs in the future. Law Office of David Wasserman ensures that every step is executed properly and that your rights are fully protected.

First Stage: Comprehensive Consultation and Planning

In the initial meeting, we discuss in depth your personal situation, family, assets, and concerns. What is the objective? Who do you want as your representative? Is there more than one representative? Do you want to limit the powers? Every question is important to design a document that precisely fits your needs.

Second Stage: Document Preparation

Your attorney will prepare a detailed document in accordance with the Power of Attorney Law (Special Provisions), clearly specifying the representative's powers, areas of activity (real estate, banking, medical, family), and any special conditions. The document must include specific legal declarations attesting that the principal acts with full awareness and of their own free will.

Third Stage: Signature in the Presence of Witnesses and/or Notary

A lasting power of attorney must be signed in the presence of witnesses with legal capacity (at least two witnesses who are not close relatives) or in the presence of a notary. Upon signature, the principal confirms their understanding of the document's meaning and signs in full agreement. This is a critical stage for the document's validity.

Fourth Stage: Deposit and Legal Review

Following signature, it is recommended to deposit a copy of the power of attorney with your bank, hospital, or a trusted attorney. Additionally, ensure that the representative understands their responsibilities and is prepared to act with integrity and accountability.

Durable Power of Attorney Pricing — Costs and Fees

The cost of a durable power of attorney depends on the complexity of the document, the number of agents, the scope of authority, and the extent of legal counsel required. In recent times, attorney fees in Israel for such a document range from ₪1,500 to ₪4,500, depending on the level of detail and guidance provided.

Typical Price Range

Important Notes on Pricing

Bar Association Fee: The Israeli Bar Association has set a recommended price for a durable power of attorney (including a will) at approximately ₪2,500–₪3,500, depending on complexity. This is a reference price only, and boutique firms or those with extensive experience may charge more.

What Is Included in the Fee? Typically, the fee includes an initial consultation, document preparation, minor revisions, and execution in the presence of an attorney. Additional costs (notarization, professional witnesses, extended guidance) may add ₪200–₪500.

Why Not Cut Corners? A legally deficient or invalid power of attorney may result in rejection by banks, hospitals, or courts. Given the cost of thousands of shekels in legal proceedings to correct or replace it (such as guardianship proceedings), saving hundreds of shekels on preparation is not worthwhile.

Durable Power of Attorney in Banks and by Bituach Leumi (Yad Sarah)

Two areas where durable power of attorney plays a critical role are banks and Yad Sarah (an Israeli social organization), as well as government offices and public bodies beyond banks. Banks require specific documents and often demand updates or additional approvals.

Power of Attorney in Banks

When you want a representative to manage your bank account (withdrawals, transfers, account opening), the bank requires a durable power of attorney signed in the presence of witnesses or a notary. It is important to state in the power of attorney that it remains valid even if you become incapacitated. Some banks require a document in their own form; an attorney can assist in adapting the power of attorney to the bank's requirements.

It is important to be precise: if you want the representative to be able to transfer funds but not issue a credit card, this should be specified. If you want them to withdraw funds only up to a certain amount, this can also be defined.

Power of Attorney with Yad Sarah

Yad Sarah is an Israeli organization that manages the assets of people who cannot manage them on their own (for example, minors, people with loss of legal capacity). If you want a representative to manage assets through Yad Sarah, you must submit a specific durable power of attorney to this organization. Yad Sarah typically requires its own document, and often also medical or legal certification of incapacity.

The process with Yad Sarah can be lengthy (several weeks to months), so it is important to start early. An experienced attorney can guide you through all steps and ensure that all documents are properly submitted.