A Power of Attorney is a crucial document which gives rights to a dependable person to bear the sake of registering, renting out, and other such activities. This article contains all the important details you need to know about PoA.
As per the Indian Stamp Act, a power of attorney is any instrument that enables you to empower any specified person to act in your name. The basic principles of such documents are governed by agency law of the Indian Contract Act. In some situations wherein you are not able to perform your duties due to various reasons such as being old, ill or being abroad, a Power of Attorney becomes a crucial tool.
Types of Power of Attorney
General Power of Attorney (GPA)
When you intend to give another person, a complete general right or power to act lawfully concerning your property, bank accounts, or, tax payments, you can give a GPA. This type of Power of Attorney has a lot of risks as its power is wide.
Special Power of Attorney
Another type is the special power of attorney, which is meant to be granted for less than a particular task. On the completion of the actual act, the special power of attorney is terminated.
Non-durable Power of Attorney
The durable power of attorney can be used for all types of transactions but, instead of acting within a specific framework, it lasts for the lifetime of the agreement or for so long as the document is valid. Once the document is finalised, the durable power of attorney is over.
Durable Power of Attorney
When someone becomes incapacitated, it cannot be easy to handle day-to-day affairs, and that is where a durable power of attorney becomes useful. This legal document allows you to designate an agent or a group of people to manage your affairs, should anything happen to you. It does not have an expiration date and is effective immediately upon your incapacitation.
Limited Power of Attorney
Limited power of attorney is used for one-time financial or banking transactions or the sale of a property. This is often employed when the principal cannot complete a transaction themselves because they are too busy with other commitments or have an illness and need an agent to act on their behalf. The agent has no other rights apart from those assigned to them within the power of attorney.
Medical Power of Attorney
A medical power of attorney gives the agent the legal authority to make certain healthcare decisions for the principal when they are unable to do so. This usually takes effect with the consent of both a physician and the principal, and it allows the agent to authorize all medical decisions on behalf of the principal.
Springing Power
Springing power of attorney only takes effect if a particular event occurs, such as an unavoidable circumstance or event that happens while the principal is out of the country and can’t attend to it. This kind of Power of Attorney becomes effective at a future date and might be durable or non-durable and can cover any number of affairs that the principal decides to allocate to the agent with all legal advice online.
Some Important Clauses in a PoA
- The name, age, address and occupation of the person who is appointing the facility of attorney.
- The date and the place of the deed, as well as the start date when it is valid.
- The termination date of the PoA deed if it’s limited by time. In case it’s not limited by time, mention whether those are durable or not.
- There should be a mention of the period within which such an act is mentioned under the special PoA.
- In cases where general powers are granted, then all the actions that the principal authorizes the attorney to perform must be clearly stated. If the donor wishes an action not to be performed, then such actions should even be stated.
PoA by an NRI
If you are an Indian who is not a resident of India, you can influence an Attorney deed even if you stay outside India. It is impractical to return to India for every banking transaction or property-related issue that a Non-Resident Indian has in India. The person you wish to give powers to can be either a friend or a family member. Every PoA excited by an NRI must be certified by the Indian Consular Office of that country, and it has to be utilised within 3 months. The PoA should be executed on stamp paper, as applicable in the particular country. Any signature in the PoA should be authenticated by the Indian embassy authorities.
Conclusion
Having a power of attorney can help you prepare for what may happen in the future. To prepare your PoA, you must connect with Vakilsearch. Our expert legal team shall provide you with a tailor-made range of services, along with proper guidance to prepare the perfect PoA. For extensive guidance and support from our legal experts, click here now!
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