POWER OF ATTORNEY
What is a Power of Attorney
A power of attorney for property (PoA) is a document that authorizes someone else (the attorney holder) to make legal decisions on your behalf in the event you are physically unable to do so yourself—decisions and actions such as paying bills, selling real estate or other investments, operating bank accounts, and so on. For more details, visit Plan My Estate.
The power of attorney is valid only if you are competent to contract, i.e., your mental faculties are in a “functional state.” For instance, it comes to an end on one’s demise (a will may be looked at as a power of attorney which becomes operational after death!).
Types of Power of Attorney
General Power of Attorney
A general power of attorney grants someone sweeping authorization to handle all your affairs. The person you designate to act on your behalf, also known as an agent, could handle a variety of tasks, including entering contracts, operating bank and demat accounts, buying or selling real estate/shares, making investments, etc. In simple terms, the power of attorney for the property holder can bankrupt you immediately.
But without it, your family may be required to file a legal proceeding seeking guardianship in case you have become incapacitated. To obtain a general power of attorney near me, you can consult a legal professional to ensure all aspects are covered. Learn more at Plan My Estate.
Special or Limited Power of Attorney
A special power of attorney for property narrows what choices the agent can make. You can have several different PoAs, with different agents for each. For example, you could create a special power of attorney that only allows your spouse to operate your bank account on your behalf. You could create another power of attorney that grants a business partner the ability to run the partnership business in the event you become incapacitated and so on. In other words, special powers of attorney allow you to be as specific as you deem necessary.
Before signing and getting a limited power of attorney notarized you’ll want to get as granular as possible regarding what your agent can and cannot do on your behalf. But if you make it too specific or restrictive, it may defeat the very purpose, and hence, it’s always a great idea to consult with your lawyer to get a general power of attorney near me.
Duties of an Attorney
An attorney must not exceed the authority given under the power of attorney for property. If the attorney does exceed their authority, he or she may be liable for any damages suffered by the donor or others. The attorney may, however, do all those acts that are authorized, but only by a particular method if the power of attorney for property so indicates. If there is a breach of any condition by the attorney, then he/she shall be liable to the donor except in a case where he/she has acted reasonably. The attorney holder must also tell the donor the nature and extent of any conflict of interest.
To ensure legal protection and compliance, it is advisable to seek a general power of attorney near me before granting authority.
Duration & Revocation of Power of Attorney
A general power of attorney remains in force unless expressly revoked or determined by the death of either party. A special power of attorney for property will be in force until the specified act is completed.
A power of attorney may be revoked at any time by the principal or donor by giving a written notice to the agent unless it is for a particular fixed period. Revocation is usually possible when the principal dies becomes insane or becomes bankrupt. The principal himself can revoke the power of attorney if the business for which the agent was appointed is completed. Find more details at Plan My Estate.
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