Power of Attorney
A Power of Attorney is an authority given by an instrument by one person, called the principal, authorizing another person called the Attorney or Agent to act on his behalf. The Power of Attorney gives legal authority to the person called Agent or Attorney In fact it empowers the Attorney to take legal decision for the Principal. A Power of Attorney can give the agent very wide powers or limited powers. Power of Attorney is frequently used in cases where the principal is ill or he is not available to complete legal transactions on his behalf. A Power of Attorney may be general by nature or may be specific. Where an authority is given by the principal to the agent to act on all matters relating to him it is called a general power of attorney. A special Power of Attorney gives the authority to the agent to do some particular or specified act.
Types of Power of Attorney in India
General Power of Attorney
A general power of attorney is executed in a general context. This document gives the agent greater authority in executing actions on the principal’s behalf. A general power of attorney authorizes the agent to perform general tasks. There should not be any mention of a specific action in a general document. The amount of trust factor involved in the execution of a general power of attorney should also be greater than the specific power of attorney. General authorizations can be given on matters of property, banking, taxation, legal disputes, and so on.
Specific Power of Attorney
Specific Power of Attorney or special power of attorney, on the contrary, is executed for a specific purpose. The authority given by the principal to the agent is therefore significantly lesser. A specific power of attorney is given out for completing a particular action, and as soon as the action is finished, a power of attorney comes to an end. A principal may have multiple specific power of attorney. A power of attorney becomes ineffective if its principal dies or becomes incapacitated, meaning the principal is unable to grant such power due to an injury or mental illness.
Durable Power of Attorney
A durable power of attorney continues even after the death of the principal. It should be expressly mentioned in the power of attorney deed.
Non-Durable Power of Attorney
When it is not mentioned in the power of attorney deed that it should be continued even after the principal’s death, it is by default non-durable power of attorney deed.
How Power Of Attorney is Useful?
- To sell, exchange, lease, collect rents, grant, bargain or borrow and mortgage.
- To execute all deeds, bonds, contracts, mortgages, notes, checks, drafts, money orders.
- To manage, compromise, settle, and adjust all matters relating to real estate.
- To enter into contracts
- Perform any contract, agreement, writing, or thing
- To make, sign, execute, and deliver, acknowledge any contract, agreement
Tax Returns, Insurance & Other Documents
- To file, sign all tax returns, insurance forms and any other documents
- To represent in all matters concern to the foregoing proceedings.
Stocks, Bonds & Securities
- To sell any and all shares of stocks, bonds, or other securities
- To make, execute, and deliver any assignment, or assignments, of any such shares of stock, bonds, or other securities.
Bank Accounts, Certificates Of Deposit, Money Market Accounts
- To add to or withdraw any amounts from any of my bank accounts, Certificates of Deposit, Money Market Accounts, etc.
- To make, execute, endorse, accept and deliver any and all cheques and drafts
- Execute or release such deeds of trust or other security agreements as may be necessary
- Deposit and withdraw funds Acquire and redeem certificates of deposit, in banks, savings and loan
When can Power Of Attorney be revoked?
- Revoked by the principal himself
- The principal dies or becomes insane or becomes bankrupt
- The business for which the agent was appointed is over
- Mutually agreed upon by the principal and agent
- The right under the power of attorney is renounced by the agent