Power of Attorney
A Power of Attorney (PoA) is a written authorisation delegated to one person from another to act on their behalf on specific matters. Defining the scope of a PoA is very essential. Experts at Filecrat understands your requirement and drafts a PoA accordin
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Power of Attorney
A Power of Attorney (PoA) is a method to manage your affairs without being physically present which save time, money and extra efforts. It is a written authorization delegated to a person from another to act in specified legal or financial matters. It makes it easy for a person to commence or proceed his legal obligations by delegating his power to another person.
It is important that Power of Attorney must signed and acknowledged by principal, agent and two witnesses before a Notary Public to give it a legal status.
Individuals Involved in a Power of Attorney (PoA)
Principal: The person delegating his power to take decision and sign the documents (of legal status) on his behalf to another person is known as the Principal. He/ She must be competent to contract under the provisions of the Indian Contract Act, 1872.
Attorney/ Agent: The person to whom principal delegates his powers is known as his attorney/ agent. He/ She must be competent to contract under the provisions of Indian Contract Act, 1872.
Benefits & Advantages
- It helps in avoiding the necessity of guardianship.
- Authorized agents will perform, plan and transact on behalf of the principal.
- Principal has power to cancel it anytime as per his wish through a legal declaration.
- It makes it non-mandatory for the principal to be present in the concerned matter for any proceeding and formality.
- Legal authorization by a person (principal) in the name of a specific person (agent) to decide and represent on him/ her in a particular matter.
General Power of Attorney: This gives a person’s power or right to the agent to act on any financial, business, real estate or legal decisions matters. For instance, managing banking transactions, buying and selling properties, paying bills, and entering into contracts.
Durable Power of Attorney: This can be conferred if the principal becomes mentally incapable. The agent then would be able to handle that person’s affairs. It comes into effect immediately with the signature of both the parties unless any special application provision is mentioned. This PoA dies with the death of principal and can be revoked only during the competent mental state of the principal.
Non-Durable Power of Attorney: This is used only for a set period of time and usually for a particular transaction in which a person grants an agent the authority to act on his behalf. The PoA becomes invalid once the transaction is complete or when the principal become incapacitated a court appoints a guardian/ conservator to perform and represent as an agent/ attorney.
Medical Power of Attorney: This is used to select a person who will act as a health care agent and make medical decisions for principal in the situations where principal’s incapacity or mental disability is declared by a certified doctor.
Special or Limited Power of Attorney: This is available for some specific purpose and has limited use such as the sale of a particular property, one-time financial or banking transactions and many other matters. It is granted by the principal when he/ she is unable to complete a transaction due to prior commitments/ illness. The agent doesn’t have any other right to act on behalf of the principal other than what is assigned to him in the Limited PoA.
Springing/ Conditional Power of Attorney: This comes into effect after occurrence of a certain event or medical condition. It can be made for fulfilling the obligations of a person living abroad which will become invalid immediately when person landed in India or dies or become incapacitated.
Essential Elements in a Power of Attorney
- Personal information of principal and agent
- Declaration of principal regarding his willingness and reason of delegation
- Description about the nature and scope of delegated power
- Two Witnesses
Revocation of Power of Attorney
- The principal dies or become insane or goes bankrupt
- Revocation by the Principal
- Rights renounced by the agent under Power of Attorney
- The agent has acted beyond the delegated power
- The agent has become incompetent under the law of land
- The agent has completed the task for which he was appointed
- Mutual decision of the principal and the agent regarding revocation
- Consultation with our Expert
- 1st draft of Power of Attorney
- Final draft of Power of Attorney after revisions
- Self-attested copy of Aadhaar Card of the principal and agent
- Self-attested copy of Voter ID Card of the principal and agent
It is not mandatory to register a power of attorney unless it is concerning a matter related to transfer of property/ rights/ titles etc.
A legally valid power of attorney is required to be signed by both the principal and attorney along with two witnesses before a Notary Public.
A notary public has the authority to notarize a Power of Attorney.
No, the death of a witness does not affect the validity of a power of attorney.