A legal document known as a power of attorney grants someone the authority to act on your behalf in specific circumstances. If you need someone to take care of your affairs for a short time or are unable to do so yourself due to illness or injury, this can be helpful.
However, if the other party exhibits misconduct or misuses such power, a legal notice of cancellation may be issued. Continue reading to learn about the various types of Powers of Attorney, their purpose, and how to draft and register one.
What is ‘Authorization to Act’ in Power of Attorney?
An authorization to act on behalf of another person in a legal or business matter is known as a power of attorney in common law legal systems. The authorized individual can make decisions, sign a contract, buy or sell property, etc. in your stead.
The Principal is the one who gives the other person permission to act. While the agent, attorney-in-fact, or attorney is the one authorized to act. Each type of power of attorney serves a distinct function, including:
General Authorization: When you want to give someone broad authority to handle your affairs, you may use this Power of Attorney. The agent is capable of almost any action, which may include managing personal finances and opening financial accounts.
Special Authorization: When you want to give someone specific authority, you use this Power of Attorney. The Attorney’s duties are specified in detail, and the rights and powers are restricted. In fact, the terms of the Power of Attorney obligate the Attorney to act.
Power of Attorney for Life: When you want to grant someone authority that will continue even if you become incapacitated, you can use this Power of Attorney. A durable power of attorney can grant a wide range of powers, including those for managing your finances, property, and medical care.
Creating a Lasting Power of Attorney: When you want to grant someone authority that will only take effect in certain circumstances, such as if you become incapacitated, you may use this Power of Attorney drafting.
How to Write a Power of Attorney?
Written and verbal powers of attorney are available; however, it is suggested that one be written down with a clear purpose. You should talk to an online lawyer at Insaaf99.com who can write your Power of Attorney in a way that satisfies your needs. The Principal’s and Attorney’s names, addresses, dates, and locations should all be included in a Power of Attorney drafting. Other than that, it ought to:
- Specify whether the Power of Attorney grants general, long-lasting, or specific powers.
- Make a list of the Attorney’s powers, such as custody, healthcare, property management, and so on.
- Include, if any, the principal’s, attorney’s, or third-party liabilities.
- Include a notary and the signatures of all parties.
You can choose a trusted friend, relative, or attorney-in-fact. Before selecting an attorney-in-fact, important factors to take into account are:
- Your attorney-in-fact should be someone of sufficient age and maturity to comprehend the underlying transactions.
- You should be able to reach your attorney-in-fact and live nearby.
- Trust and goodwill alone are not sufficient criteria. They ought to have solid understanding of financial matters and sufficient experience to carry out legal transactions when required.
How can a Power of Attorney be revoked?
The Principal has the right to revoke the Power of Attorney if:
- The Attorney violates the terms and clauses of the Power of Attorney. However, the Principal must provide prior legal notice of the Power of Attorney cancellation.
- A power of attorney can also be revoked if the work or business for which it was granted is completed.
- When the Principal closes the business, the power of attorney expires. The Principal can then revoke the power of attorney, making it unnecessary to keep it.
A Deed of Revocation can be signed to revoke a Power of Attorney. Additionally, the Principal must guarantee the Attorney’s performance of their duties; However, the Principal is not responsible for securing the Attorney if the Attorney actually violates the law or acts in bad faith or performs work that could result in criminal consequences.
Why is an attorney necessary?
When you are unable or unavailable to act on your own and require someone to act on your behalf, it is helpful to grant a Power of Attorney to someone you trust. These are some of the most common reasons to grant power of attorney, you are a retired person or a dependent with medical limitations, a service member away from home, or a service member.
Can the authority to act be revoked?
Yes. If it is demonstrated that the agent is abusing their position in a way that is detrimental to the principal’s interests, the court may revoke the power of attorney. After that, it gives the power to a guardian. Revocation helps lower the risk of granting power to someone who can bind you to unaffordable deaths or purchases. You will be the one to pay the bills if an agent acts on your behalf.
Does the principal’s power of attorney continue after their death?
No. After the principal dies, the power of attorney is null and void. However, family members may grant the attorney power of attorney if they so choose. All of this seems quite specific and it definitely is, from the legal point of view. Hence, it is advised to hire a lawyer from Insaaf99.com to avoid any miscommunications and prevent faults in the Power of Attorney registration.