Meaning of Power of Attorney
Page Contents Table
The POA also is known as Power of Attorney is defined as a lawful document implemented by one or more persons authorizing one or more people to take a particular action on your behalf.
The party or individual who endorses the POA is referred to as the Principal while the party to whom the authority is given is known as the Agent.
It is very important to note that the fact that the Principal or someone who has made a POA doesn’t have the power to make decisions again.
The power of attorney meaning is that the authorized person may act on his behalf. It is also noteworthy that the Principal has the power to withdraw the authority of the Attorney-in-Fact (Agent) if he is not pleased with the performance.
Purpose of the Power of Attorney
Many things can cause somebody to make power of attorney in India.
- The time and situations when one can make power of attorney are:
- When the Principal is ill
- When he is embarking on a journey that will not allow him to be physically available to endorse and authorize some vital documents of his business, particularly when it comes to financial transactions.
- In case of physical disability
Power of Attorney Format
You need a power of attorney format particularly designed by you because a general form you download on many legal websites or bought from supply stores may not be suitable for your individual needs.
A POA can be designed based on your requirements. This document can be just whatever you want it to look like.
Therefore, there is no point for you to restrict yourself to the prewritten, and bought power of attorney format.
You can design your power of attorney format if you can follow a few fundamental guidelines.
After you must have finished drafting your power of attorney format, you can seek the help of an attorney to review the document for you.
More importantly, ensure that it covers you under the law.
You can download the sample power of attorney format to see what it contained and how you can craft yours to suit your purpose.
Steps to Crafting a Unique Power of Attorney Format
Step 1 To Whom Do you want to vest with the POA?
In a POA of attorney contract, you are giving someone the authority to act for you in certain capacities.
The person you choose will make a lot of vital decisions for you. It is also noteworthy that any decision taken by your agent is also binding on you.
Hence, the person you will give this power of attorney must be trustworthy.
Step 2 When do you want the agent to take action on your behalf?
Durable Power of Attorney: This is when your agent act on your behalf now and when you are incapacitated.
Springing Power of Attorney: In this situation, your agent represents you and takes charge only when you are incapacitated.
Step 3 What is the nature of the Power of Attorney?
Prepare the list of the activities that you want your agent to carry out on your behalf like managing your finances and personal business, taking healthcare decisions on your behalf or the two.
Step 4 Description of your POA
Right on top of a page, write the description of your power of attorney as per the decisions you have arrived at above.
Boldly write Springing POA for Health Care if you have chosen the agent to represent you as soon as you are incapacitated.
On the other hand, write Durable General POA if you have appointed the agent to have general powers now and soon.
Step 5 Write Your Particulars
Give the impression that you are sound, well, and in a perfect state of mind, write your name and where you reside below the caption in step 4 above.
Give the impression that you are physically okay and confirm that you are the one authorizing the agent you have appointed and add the name of the agent and where he lives.
Be specific you are appointing the agent as your lawful and true attorney or agent.
Step 6 Jurisdiction of the Agent
State all you are appointing and authorizing your agent to do for you. You can copy from the power of attorney format you have already designed and include detailed information like addresses of the real estate you want the agent to manage, or the account numbers of you want him to manage for you.
Step 7 The Commencement Date
At this stage of the power of attorney format, put the date you want the power of attorney in India to start.
If you want to terminate the agreement on a particular date instead of being springing or durable, specify it therein also.
Add the statement that indicates specifically that you want the power of attorney to be strong and last even beyond your incapacitation if this is what you have concluded.
Step 8 The Signature Lines
At this last stage, include the columns where you and your agent will both append your signatures and effective dates, while a notary public witness the deal.
Revocation of Power of Attorney in India
While the power of attorney meaning is similar across the world, a particular process and steps must be followed to revoke the power of attorney in India.
Follow the steps below to cancel your power of attorney in India:
- 1. The first step to revoke/cancel the power of attorney in India is to prepare a deed of the Revocation of power of attorney.
- 2. Publish the revocation notice one India National or Local Newspaper to notify whosoever is involved in the POA contract.
- 3. Register the POA revocation deed with the exact authority who initiated or registered the power of attorney in India.
- 4. Duplicate of the POA must be forwarded to the Agent to be aware of the development.
- 5. Forward the duplicates of the deed of revocation to the people who have been acting and interrelating on behalf of the principal so that they can stop having business transactions with the agent.
With powers of attorney, you have the power to manage your life and protect get your interest protected.
The power of attorney in India offers huge responsibility and ownership authority. Your choice of POA agent can make or mar the whole process, particularly when it comes to a medical power of attorney.
Power of attorney meaning and its principles are the same all over the world. However, you need to design a unique power of attorney format that will suit your conditions, unlike the readymade power of attorney formats available for download in different online legal websites.
The power of attorney in India is such a sensitive one. Consequently, carry out extensive research and exercise patience when looking for power of attorney agent.
The agent of your choice must be reliable and competent enough to represent you in all capacities as your agent.
Your POA agent may gain access to all your vital documents such as your bank accounts. He may also have the ability to transfer your funds, sell any of your estates, and donate gifts on your behalf.
Therefore, shine your eyes when looking for a POA agent!
Stockquantum was founded by Dharmendra Mukati in 2018. I am a Trader and Investor in the last 10 years.
I am writing here about stock broker review, broker comparison, IPO investment, Crypto currencies, technical analysis, fundamental analysis, sub brokership, mutual fund, personal finance, and our experiences.