People often wonder about the difference between a power of attorney and a third party bank mandate (the Italian delega su conto bancario, a limited form of authorization narrower than a general power of attorney). The two are sometimes treated as synonyms: essentially, one person can carry out a transaction on behalf of another who has granted such authority.

Third Party Bank Mandate vs. Power of Attorney

For a basic bank authorization on a current account, it is sufficient for both the account holder and the authorized person to visit the bank and complete the required form. This authorization is free of charge, remains valid for a defined set of transactions, and does not expire unless revoked. The situation changes when a power of attorney is required.

Power of Attorney

In Italy, a power of attorney is necessary whenever a legal act must be executed in the presence of a notary but the principal cannot attend in person. It applies only to specific acts and cannot cover “strictly personal” matters such as drafting a will. Moreover, it must remain within the limits set out in the document. For example, a delegate authorized to purchase a property cannot independently select the contractor for a renovation.

General vs. Special Power of Attorney

It is important to distinguish between “special” and “general” powers of attorney: Special Power of Attorney – Granted for a single, specific transaction. Example: appointing someone to complete the purchase of a property when you cannot be present. Typical cost: around €150–250.

General Power of Attorney – Grants broader authority to represent you in dealings with third parties, such as banks, courts, real estate transactions, or tax matters. Typical notary cost: around €1,000.
Because of its broad scope, this is a serious decision requiring full mental capacity and careful consideration.

If the principal is no longer able to act and has not granted a power of attorney, a court-appointed guardian (the so-called amministratore di sostegno)—designated through a medical assessment and a judge’s decree—will manage such matters.

A general power of attorney can also serve a practical purpose when someone remains in good health but no longer wishes to handle routine tasks such as paying rent or managing financial assets.
It can even be a way to test the abilities of future heirs or trusted individuals before eventually transferring full responsibility, while still retaining control during one’s lifetime.

Customization and Preventive Planning

A general power of attorney can be tailored to individual needs and is an effective preventive tool for handling unexpected events.
Consider someone who must sell a property or liquidate investments but is physically or logistically unable to be present. Consider someone who must sell a property or liquidate investments but is physically or logistically unable to be present.
A well-crafted power of attorney can resolve such issues smoothly, provided it is carefully drafted to reflect the principal’s circumstances.

Need more detailed guidance or have specific questions about choosing the right form of power of attorney? Contact me for further information.