The "Iron Swords" War - Who will take care of you, your business, and your dependents in the event of bankruptcy?
Oct 17, 2023
From: Attorney Shlomi Hadar - John Geva, Hadar & Co. - Lawyers and Mediators ***
The cliff of times and war flood us with worrying and real thoughts of events such as death and incapacity. What would happen if there was no possibility of controlling one's life, health, property, or business due to an event that would, God forbid, lead to a state of incapacity? What immediate actions can be taken now to enable that control?
The Israeli legislator was aware of the need to provide a solution to the need to control as much as possible what would happen during incapacity, by applying to the court to appoint a guardian. Thus, after numerous discussions on the subject, a legal tool for risk management was born that allows a person – before the irreversible moment – to control his life in the event of incapacity, in the spirit of the concept that a person can and should determine his own future and destiny.
The name of this legal tool is: Enduring Power of Attorney .
Since the tool was born, it has accumulated extensive experience in determining needs, in formulating an appropriate and suitable power of attorney depending on the case and the matter, whether it concerns entrepreneurs, business owners, self-employed individuals, or company owners.
We note that appointing a guardian (a bureaucratic process subject to the guidelines of the court and the General Guardian in the Ministry of Justice) sometimes leads to loss of property, business collapse, making incorrect decisions due to a lack of familiarity with the business (especially when it is a business based on personal trust or when the business is based on a key figure) or the complexity of family relationships, and this often even gives rise to disputes and lack of clarity among dependents and family members.
From: Attorney Shlomi Hadar - John Geva, Hadar & Co. - Lawyers and Mediators ***
The cliff of times and war flood us with worrying and real thoughts of events such as death and incapacity. What would happen if there was no possibility of controlling one's life, health, property, or business due to an event that would, God forbid, lead to a state of incapacity? What immediate actions can be taken now to enable that control?
The Israeli legislator was aware of the need to provide a solution to the need to control as much as possible what would happen during incapacity, by applying to the court to appoint a guardian. Thus, after numerous discussions on the subject, a legal tool for risk management was born that allows a person – before the irreversible moment – to control his life in the event of incapacity, in the spirit of the concept that a person can and should determine his own future and destiny.
The name of this legal tool is: Enduring Power of Attorney .
Since the tool was born, it has accumulated extensive experience in determining needs, in formulating an appropriate and suitable power of attorney depending on the case and the matter, whether it concerns entrepreneurs, business owners, self-employed individuals, or company owners.
We note that appointing a guardian (a bureaucratic process subject to the guidelines of the court and the General Guardian in the Ministry of Justice) sometimes leads to loss of property, business collapse, making incorrect decisions due to a lack of familiarity with the business (especially when it is a business based on personal trust or when the business is based on a key figure) or the complexity of family relationships, and this often even gives rise to disputes and lack of clarity among dependents and family members.
Drawing up a durable power of attorney is suitable for adults (over the age of 18) who wish to appoint in advance someone to handle their affairs in the event of incapacity and to provide instructions on how to do so.
The future will be the present one day and then it will not be more important than it, and if we add – today's tomorrow does not exist. What exists is the ongoing present. As such, we must immediately detach ourselves from thoughts such as "It won't happen to me," "This is not the time for this, certainly during wartime"... and we can flood in with more thoughts that reject simple actions that provide an immediate solution and events that God forbid will happen.
Anyone involved in the construction industry knows well that the element of time and immediacy is of great importance in business management, because the continuation of a project due to failed management or delays in appointing key personnel, etc. due to legal bureaucracy, may result in financial disaster and losses.
Accordingly, and certainly in times of uncertainty and shaken personal security, there is great importance and urgency in making decisions and properly planning for the future in the event of a disability - an event in which it is impossible to function and make decisions due to a cognitive problem.
What is common between drafting a durable power of attorney and drafting an insurance policy is the uncertainty about the future and the need that most of us have to reduce risks and take care of our business or loved ones. In times of war, unfortunately, uncertainty is reduced and the risk of an event that will lead to physical harm, including one that will lead to impoverishment, increases.
An insurance policy, such as disability insurance, can provide financial support or other tangible relief, and should be taken out for those who do not have one, but it cannot provide a plan of action in the event of incapacity. An insurance policy cannot fulfill your wishes in the event of incapacity. An insurance policy cannot allow you to control what happens when your ability to decide has been impaired, הוהח.
The execution of an enduring power of attorney is conditional on the grantor understanding the meaning, purposes, and results of granting an enduring power of attorney. Therefore, this power of attorney must be executed when the person making the appointment is of sound mind.
Who is a durable power of attorney suitable for?
The proxy is often chosen based on a relationship of trust and closeness between the appointer and the appointee (for example: spouse, relative, business partner or friend), or due to expertise or professional experience.
The appointer can decide to appoint a single attorney or several attorneys. The appointer must determine whether the attorneys will act jointly or separately, how the powers will be divided between them, and what the scope of the powers of each attorney is.
Receiving a salary: The appointer may determine in the power of attorney that the agent will be entitled to a salary. In this case, he must determine the scope of the agent's salary. In addition, the agent is entitled to reimbursement for reasonable expenses incurred in the performance of his duties.
How to choose a power of attorney?
How do you make a durable power of attorney?
A durable power of attorney is a legal document , prepared by either the principal, who himself chooses the entity (or entities) that will handle his affairs, if and when he runs into any difficulty, or by proxy, who must act according to the instructions of the person in charge.
After examining the needs and desires of the appointer, usually after an in-depth analysis of the needs, desires, and legal limitations that may arise when using the power of attorney (with the professional assistance of the attorney accompanying the process), the power of attorney is prepared and signed before an attorney who has no personal interest in the power of attorney and who has been authorized to prepare a lasting power of attorney on behalf of the General Guardian at the Ministry of Justice .
Similar to the drafting of wills and agreements, which are sometimes drafted haphazardly, we have found that carelessness in the matter may, when carrying out instructions under a durable power of attorney, just as easily lead to the same mistakes that are detrimental to the purpose of the power, especially when, due to lack of experience, legal restrictions or relevant third parties (partners, family members, understanding of the business, parties to agreements, etc.) are not taken into account. Hence, just as much importance should be given to drafting a durable power of attorney, so too should the many implications of this important tool be seriously considered and all considerations discussed, before drafting it. However, then, after appropriate thought, is the time to take action and draft an appropriate power of attorney before any professional, reliable lawyer who is available and has consent to it.
*** Partner at the firm of John Geva, Hadar & Co., Attorneys and Mediators, external attorney for the Itzick Simon Insurance Agency Ltd. and has consent from the General Custodian to issue a durable power of attorney.
A durable power of attorney is a legal document , prepared by either the principal, who himself chooses the entity (or entities) that will handle his affairs, if and when he runs into any difficulty, or by proxy, who must act according to the instructions of the person in charge.
After examining the needs and desires of the appointer, usually after an in-depth analysis of the needs, desires, and legal limitations that may arise when using the power of attorney (with the professional assistance of the attorney accompanying the process), the power of attorney is prepared and signed before an attorney who has no personal interest in the power of attorney and who has been authorized to prepare a lasting power of attorney on behalf of the General Guardian at the Ministry of Justice .
Similar to the drafting of wills and agreements, which are sometimes drafted haphazardly, we have found that carelessness in the matter may, when carrying out instructions under a durable power of attorney, just as easily lead to the same mistakes that are detrimental to the purpose of the power, especially when, due to lack of experience, legal restrictions or relevant third parties (partners, family members, understanding of the business, parties to agreements, etc.) are not taken into account. Hence, just as much importance should be given to drafting a durable power of attorney, so too should the many implications of this important tool be seriously considered and all considerations discussed, before drafting it. However, then, after appropriate thought, is the time to take action and draft an appropriate power of attorney before any professional, reliable lawyer who is available and has consent to it.
*** Partner at the firm of John Geva, Hadar & Co., Attorneys and Mediators, external attorney for the Itzick Simon Insurance Agency Ltd. and has consent from the General Custodian to issue a durable power of attorney.
מסמכים
