Life can throw up unexpected situations, such as illness, accidents, divorce, or the death of a loved one. One of the most important ways to prepare for such situations is to ensure that your legal documents are in order.
Many people take care of things such as insurance and savings, but tend to forget about legal foresight, which is an essential part of comprehensive preparedness.
The most important documents in this regard are a lasting power of attorney, prenuptial or nuptial agreement, and last will and testament.
They help you ensure that your wishes are carried out even when you are no longer able to manage your affairs yourself or when it is too late to make any agreements.
Lasting power of attorney grants the right to manage matters
By issuing a lasting power of attorney, you can authorize a trusted person to manage your affairs in the event that you are no longer able to do so yourself, for example due to illness or accident.
Your next of kin – even a spouse or children – do not have an automatic right to manage your affairs without proper authorization.
The lasting power of attorney determines who will act as your representative, including the matters that they are authorized to manage on your behalf. Such matters may be financial in nature or health-related.
The power of attorney may also include instructions specifying how and to what extent the authorized person should act. As this is a position of trust, such a representative should be selected with due care.
It is also advisable to appoint deputies, such as a secondary representative in case the primary representative does not accept the assignment or is permanently unable to perform their duties, and a substitute representative in case the primary representative is temporarily unable to perform their duties.
Additionally, a qualified substitute representative may be appointed in view of situations where the primary representative is disqualified, such as when they are a party to the proceedings that the representative is required to handle on your behalf.
Precise formal requirements are set out in law for drawing up a lasting power of attorney.
The power of attorney must be drawn up in writing and signed by its author in the presence of two disinterested witnesses.
Also, the document needs to be signed by the witnesses who must be aware of the purpose for which the document is prepared. The lasting power of attorney must specify, inter alia, its purpose, the name of the authorized representative, the content of the authorization, as well as a provision stating when it is to take effect.
If the document fails to comply with the law, it cannot be invoked even in a situation where such authorization would be necessary.
Both the person drawing up the lasting power of attorney and the witnesses must be of legal age. The author must also understand the significance and content of the document. If the author is elderly or has been diagnosed with a memory disorder, it may be advisable to include a medical statement on the author’s legal capacity.
Drawing up a lasting power of attorney does not mean that the author would immediately lose their right to manage their own affairs.
The power of attorney will only be exercised when the author is no longer able to manage their own affairs. For the lasting power of attorney to take effect, an application for its confirmation must be filed with the Digital and Population Data Services Agency and approved by the agency. As a rule, confirmation by the competent authority requires a medical certificate stating that the author's functional capacity has been reduced and that there is a need to activate the power of attorney. It is also possible that the power of attorney will not be needed at all.
This means the author remains in full possession of their mental faculties to the very end. However, this does not render the document useless – it serves as a form of proactive protection, similar to insurance.
A prenuptial or nuptial agreement facilitates the division of assets in case of divorce
Marriage has a number of legal implications for spouses. One of the most important is the marital right to property.
It means that when a marriage ends in divorce or the death of one spouse, the combined assets of both spouses are, in principle, divided equally.
It does not matter when or how the property was acquired. By signing a (pre)nuptial agreement, spouses can agree that some or all of their assets will be excluded from the marital right to property.
It is advisable to consider a prenuptial agreement if there is a significant difference in the wealth of the spouses at the time of marriage or if either spouse is expected to receive significant testamentary bequests or gifts.
A prenuptial agreement may stipulate that it only applies to a specific part of the spouses' property. Also, when one of the spouses has joint family property, such as a holiday home or a farm, it may be advisable to exclude such assets from the marital right to property.
This prevents, among other things, a person outside the family from making claims on such property in the event of divorce.
However, a prenuptial agreement is not necessary in all situations. If the spouses have assets of more or less similar value and no significant inheritance or gifts are expected, a prenuptial agreement may not be needed.
It is advisable to consider the implications of a (pre)nuptial agreement, particularly in situations where one spouse has, for example, stayed at home to look after the children and enabled the other spouse to pursue a career, in which case a (pre)nuptial agreement that excludes everything could lead to an unfair outcome.
(Pre)nuptial agreements are also governed by certain formal requirements. A (pre)nuptial agreement must be made in writing, dated, and signed by both spouses. Additionally, it needs to be signed by two disinterested witnesses.
To be valid, the agreement must be registered with the Digital and Population Data Services Agency. A nuptial agreement may be made before marriage or at any time during marriage.
The agreement may be amended or terminated by making and registering a new nuptial agreement. Since the nuptial agreement is essentially a contract, the consent of both spouses is always required – a (pre)nuptial agreement cannot be drawn up unilaterally.
Last will and testament expresses the wishes of the person leaving the inheritance
A will and testament allows the testator to determine how their property will be distributed upon demise. If there is no will, the estate will be distributed to the closest relatives in accordance with the law of succession. However, as this does not always correspond to the wishes of the deceased, it is often advisable to draw up a last will and testament.
For example, a will can be used to secure the position of a widow or widower and give the spouse the right to own or control certain assets. Making a will is particularly important if you want your live-in partner to have rights after your death.
A live-in partner has no direct legal rights to the property of the deceased partner. Similarly, the position of children can be improved by stipulating in the will that their spouses shall have no marital right to the property acquired under the will. This ensures that the property stays in the family.
A will allows you to leave your property to virtually anyone – relatives, friends, or charity. The fundamental rule in Finland is freedom of testamentary disposition. However, in practice, this freedom may be limited by the children's right to a statutory portion of their parents' estate. But children can also accept the will and relinquish their legal portions.
When drafting a will, specific formal requirements must be followed. It must be made in writing, dated, and signed by the testator in the presence of two disinterested witnesses.
The witnesses must ensure that the testator has drawn up the document of their own free will, fully understanding its contents. The witnesses do not need to know the details or contents of the will.
If a will fails to meet the legal requirements, it can be declared invalid by filing an action for annulment. For this reason, it is advisable to hire an experienced lawyer to draw up the will, who can take into account both the requirements of the law and the wishes of the person making the will.
At the same time, the lawyer can ensure that the will is compatible with the provisions of any nuptial agreement, life insurance beneficiary clauses, etc. A carefully drafted will and testament can also have an impact on inheritance tax.
You may also prepare the documents yourself
When drafting these documents, it is important to understand their significance and content. It often makes sense to consult an expert to ensure that the documents are valid and mutually consistent.
Forward-looking planning can contribute to security, control and peace of mind for you and your next of kin. However, you can prepare any of these documents yourself. If so, take extra care to ensure that the documents meet all legal requirements.
The costs of preparing the documents can vary considerably depending on how the documents are drafted.
However, the same registration fee is always charged for registering a nuptial agreement, regardless of how it has been drawn up. In 2025, the fee charged by the Digital and Population Data Services Agency is €87.
Self-prepared documents may be the most affordable option. However, it is advisable to bear in mind that an incorrectly or improperly drafted document can have costly consequences later on.
This type of documents are drawn up by law firms, attorneys-at-law and certain banks as part of their professional services. Normally, the cost of preparing documents is based on an hourly rate or fixed flat rate per document.
Drawing up a will with the assistance of an expert usually costs around €300 or more. The rates range from €200 to €500 for prenuptial and nuptial agreements and €100 to €600 for lasting powers of attorney. The rates also depend on the scope and level of detail of the documents involved.
The author, an expert in family and inheritance law, works as a lawyer at Vestra Private.