We often hear of cases where legal heirs or agents are signing documents in place of another individual, it can be related to finances, properties and also medical. Ever wondered what right constitutes them to authorise on behalf of another Individual. This right is conferred to them by the legal document of power of attorney.

What is Power Of Attorney?

The legal document of Power of Attorney establishes the right to an individual to assign someone to sign and execute document on their behalf as if it is done by himself. Power of Attorney is governed by the Power of Attorney Act 1882.

Is it Mandatory to register a Power Of Attorney?

Every POA which constitutes above 100 Rupees on immovable property is mandated to be registered. For document to be considered legally valid document it is required to notarized by the notary and authenticated by a sub- registrar. To avoid loopholes and enhance authenticity it is a basic rule to always register a power of authority.

Different Forms of Power Of Attorney?

Different Types of Power Of Attorney?

General Power Of Attorney

This type of POA covers multiple aspects. The principal assigns full consent on the agent/ to act on his behalf given the matters are related taxation, finance, property management. This type of POA is usually associated with property matters.

Special or Limited Power of Attorney

This type of POA is very exclusive on the authorities delegated to the agent by the principal. It is assigned for a specific period or a specialised task and consent for delegation by POA to the agent by the principal dies once the task has been accomplished.

Medical Power of Attorney

One of the most commonly type of Power Of Attorney is medical (POA). This type of POA does not constitute immediately but only when the principal is rendered incapacitated and is a durable POA . However the POA renders the capacity of a living will. Everyone present in care of the principal (patient) has to be made aware of the existence of such legal document.

Risks involved in signing of Power Of Attorney.

It is crucial to customise with the risks involved in the process of delegation of authority through a POA.

• It is crucial to ensure that the document is rigidly constructed and intimate the institutes about the existence of such legal so that the agent appointed in the future can carry on the obligations smoothly without loopholes.

• Always vet the agent appointed for any impending loans and keep records of the same in case of breach of trust.

• Appoint a third party to keep check on the agent/agents to whom authority is delegated to ensure that obligations go through smoothly.

Can Power Of Attorney be revoked?

Yes, POA can be revoked by the principal given that they are of sound mind. The Donor or Principal will have to issue a notice in a local newspaper and also draft and register a deed of revocation.

Can NRI’s institute a Power Of Attorney ?

Yes, NRIs can institute a POA and is mandatory to register for managing finances, sale of property, taxation etc while residing abroad as well as authentication of Indian Embassy.

Conclusion.

Institution of a POA governs important financial, medical and health care services on the principals behalf. It is essential to ensure that it is a legally valid document. The intricates of the document have to be vetted and be rigidly construed so as to no loop holes can be found to create mischief for the POA is fulfilled successfully.

Do contact us at bestlegalservices.in for drafting of Power of Attorney or review of Power of Attorney.