Healthcare proxy is becoming increasingly popular: why take out such a proxy?

A healthcare power of attorney is a document that states who will manage your assets if you are no longer able to do so yourself. This does not have to be just one person, you can also choose to designate different people.

A health care proxy can be useful if someone develops dementia, but can also provide a solution if someone no longer feels physically able to manage all their affairs. It is not just for old people. Younger people can just as easily fall into a coma after a stroke or a traffic accident. In that case, too, a healthcare proxy is useful to make it clear who can make decisions on your behalf.

The possibilities of the healthcare power of attorney are very broad. This can range from banking transactions to the management of your securities portfolio to completing your tax return. Larger transactions are also eligible, such as making donations or selling real estate.

But a health care proxy can also be used for more than just financial matters. You can also authorize others to make decisions regarding your care and where you live. This may be the case if you can no longer live independently and a choice must be made for a residential care center.

Figures that De Standaard requested from notaries show that 100,451 people drew up a healthcare proxy last year. This marks the 100,000 mark for the first time. Since the healthcare power of attorney was introduced in 2014, approximately 500,000 people have drawn one up. It is striking that nine out of ten healthcare proxies were registered in Flanders last year.

The success of the health care power of attorney probably has to do with the realization that without that document, a justice of the peace will appoint a guardian if someone becomes incapacitated. The person concerned no longer has a say in the choice of that administrator.

A healthcare power of attorney can be an important instrument in the context of estate planning. This means that a person can continue to have access to his assets until almost the end of his life without having to pay inheritance tax after death.

After all, it is possible that the person who executes your health care proxy will make a donation in your name even up to the last day of your life. In the Flemish Region, this means that you pay a gift tax of 3 percent on direct line movable property. This is cheaper than inheritance tax, which can be up to 27 percent.