Shanghai Guidelines on Durable POAs for Elderly Persons

We wrote an article before when China Civil Code was enacted and put into effect in 2021 introducing the so called "consentual guardianship" regime that was intended to address the rising phenomena in China where elderly people are living alone with kids living in different cities or countries due to various reasons.

However the concise wording in China Civil Code about "consentual guardianship" means it is still pretty far off from giving impact on real life. In pratice, we have seen notary offices in China vigirously pushing the development of this estate planning instrument by helping with notarizing related legal documents signed that purpose. While detailed implementation rules from China central government or China Supreme Court, Shanghai government has been very practive in rolling out this legal instrument in its territory, mainly for the reason that Shanghai has already entered into "gray" city with elderly people counting for a great proportion of its population.

Thus Shanghai government has issued guidelines in translating the rules in the books into reality. At end of 2025, Shanghai government issued its first notice setting out legal framework for rolling out the consentual guardianship regime, and in June of 2026, it issued this new notice laying down more concrete implementation rules.

1. Purpose and Legal Basis
   The Guidelines aim to implement the durable (voluntary) guardianship system for elderly persons aged 60 and above, protect their lawful rights and interests, and standardize related workflows. They are formulated under the Civil Code of the PRC, the Law on the Protection of Rights and Interests of the Elderly, the Shanghai Regulations on the Protection of Rights and Interests of the Elderly, and other relevant regulations.
2. Key Parties Involved

• Ward (the elderly person):Must possess full civil capacity when signing the durable guardianship agreement and be able to express their true intentions clearly.
• Durable Guardian:May be a close relative, another willing individual, or a professional organization. Individuals must have the capacity and integrity to perform duties; organizations must be lawfully registered with proper governance structures and qualified staff. The Guidelines encourage professional social organizations registered with civil affairs departments to serve as guardians.
• Guardianship Supervisor:Encouraged to be appointed to oversee the guardian’s performance, handle emergencies, and apply to the court to revoke the guardian’s qualification if necessary.
• Property Manager:Encouraged to be a separate third party (rather than the guardian) to achieve separation of personal care and property management, thereby safeguarding the ward’s assets. The manager’s authority must be clearly defined in the agreement or a trust instrument.

3. Establishment and Operation of Guardianship

• Creation:The elderly person, while fully capable, enters into a written durable guardianship agreement with the chosen guardian. The Guidelines promote using the model agreement template and having the agreement notarized to ensure legal validity. Neighborhood committees, village committees, elderly organizations, and eldercare institutions may be invited to witness the signing.
• Commencement:The guardianship relationship formally begins only after a people’s court declares the ward to have lost or partially lost civil capacity. Interested parties or relevant organizations may petition the court for such a declaration, and the court may commission a forensic psychiatric evaluation if necessary.
• Termination:The relationship terminates when the ward regains capacity, dies, the guardian loses capacity or dies, the guardian is revoked by law, or the agreement expires or is dissolved. Upon termination, the guardian must transfer affairs and settle accounts under the supervisor’s oversight.

4. Ancillary Services

• Agency and Temporary Care Services:Before the formal commencement of guardianship, if the elderly person’s physical or cognitive decline prevents them from handling certain affairs, the designated guardian may provide agency services or temporary care (e.g., emergency medical assistance) as stipulated in the agreement.
• Property Management:The ward is encouraged to prepare a detailed inventory of assets (cash, real estate, securities, etc.) with the guardian, supervisor, and property manager, and to update it regularly after guardianship begins.

5. Support Measures

The Guidelines call on district and municipal civil affairs departments to: - Establish service mechanisms and provide consultation through community eldercare centers; - Strengthen public awareness, targeting vulnerable groups such as childless elderly, special family-planning households, and families where children cannot perform guardianship duties; - Cultivate and supervise professional guardianship organizations, maintaining a public database of such entities; - Enhance legal protections against elder fraud and facilitate access to legal aid; - Encourage financial institutions to innovate products for property management under durable guardianship.

6. Model Agreement (Annex)

The attached Model Durable Guardianship Agreement (2026 Edition) provides a detailed template covering: - Identification of the ward (Party A), guardian (Party B), supervisor (Party C), and property manager (Party D); - Specific guardianship matters: personal care, medical decisions, property management, document custody, social welfare applications, legal proceedings, funeral arrangements, and estate administration; - Delegated agency and temporary care provisions for the period before the ward is judicially declared incapacitated; - Property restrictions: Prohibitions on borrowing, guaranteeing, purchasing luxury items or real estate, changing insurance beneficiaries, participating in financing activities, or making large unilateral gifts to the guardian or supervisor, unless specific conditions are met and the supervisor consents; - Reporting obligations: The guardian must maintain an inventory of property and submit regular, ad hoc, and final reports on the ward’s status and financial transactions; - Supervision: The supervisor’s duties include monitoring the guardian, investigating the ward’s condition, and petitioning the court for revocation or damages if the guardian breaches duties; - Priority rule: The durable guardian’s authority takes precedence over statutory guardians; - Remuneration and expenses: Provisions for payment to the guardian, supervisor, and property manager; - Dispute resolution and termination procedures.

In essence, the document establishes a comprehensive framework to help Shanghai’s elderly proactively plan for future incapacity by appointing trusted guardians and supervisors, with strong emphasis on procedural safeguards, separation of personal and property management, and professional oversight.