Legal power of attorney
A Power of Attorney (POA) is a legal document that allows one person (the principal) to authorize another individual (the agent or attorney-in-fact) to act on their behalf in various matters. This authorization can encompass a wide range of decisions and actions, including financial, legal, medical, and property-related affairs. The POA’s scope can be either broad, covering most aspects of the principal’s life, or limited, restricting the agent’s authority to specific tasks or decisions.
Key Aspects
Governing Act: The Powers of Attorney Act, 1882 governs POAs in India.
Purpose: To empower a chosen individual to manage the principal’s affairs when the principal is unable to do so due to reasons like illness, disability, or absence.
Parties Involved
Principal/Grantor: The person granting the authority.
Agent/Attorney-in-Fact: The person receiving the authority and acting on behalf of the principal.
Witnesses: Individuals who attest to the signing of the POA document.
Types of Power of Attorney:
- General Power of Attorney (GPA): Grants broad authority to the agent, covering most of the principal’s affairs unless specified otherwise.
- Special Power of Attorney (SPA): Limits the agent’s authority to specific tasks or transactions, such as selling a particular property or handling a specific legal matter.
- Durable Power of Attorney: Remains effective even if the principal becomes mentally incapacitated, ensuring continuity in decision-making and management of affairs.
- Springing Power of Attorney: Becomes effective only upon the occurrence of a specified event or condition, usually the principal’s incapacitation.
- Medical Power of Attorney: Grants the agent the authority to make healthcare decisions on behalf of the principal when they are unable to do so.
Legal Requirements for a valid Power of Attorney
- Legal Competence: Both the principal and the agent must be mentally competent and of legal age (above 18 years).
- Specificity: The POA document must clearly define the powers granted, outlining the scope and limitations of the agent’s authority to avoid ambiguity or misinterpretation.
- Execution: The principal must sign the POA document in the presence of witnesses, as required by law.
- Notarization: The POA must be notarized by a notary public or registered with the sub-registrar to be legally valid. Notarization validates the document’s authenticity and ensures its legal enforceability.
- Stamp Duty: The POA must be prepared on non-judicial stamp paper of the appropriate value, as specified by the Indian Stamp Act, 1889, according to www.nrilegalservice.com.
Revocation of Power of Attorney:
Revocation Deed: To revoke a POA, the principal must draft a revocation deed clearly stating the cancellation of the agent’s authority, mentioning the original date and details.
Notification: The principal must inform the agent in writing about the revocation.
Registration: If the original POA was registered, the revocation deed must also be registered with the Sub-Registrar to ensure legal validity.
Publication: It’s advisable to publish the revocation notice in a local or national newspaper to inform the public and any third parties dealing with the agent.
Importance:
Continuity of Affairs: Ensures someone can manage the principal’s affairs, whether financial, legal, or personal, in case of absence or incapacity.
Legal Protection: Provides legal backing for the agent’s actions, reducing the need for costly and time-consuming court proceedings like guardianship or conservatorship.
Peace of Mind: Allows the principal to rest assured that their affairs will be managed according to their wishes by a trusted individual.
Facilitation of Transactions: Streamlines processes like property transactions, banking, and legal proceedings when the principal cannot be physically present.