Skip to main content

Importance of Power of Attorney in India

 What is Power of Attorney

A Power of Attorney (POA) is a document that allows an individual to appoint a person or an organization to manage his/her affairs if he becomes unable to do so.


The person delegating authority under the POA is called the principal and the person to whom authority is being delegated is called the agent. This establishes a Principal-Agent relationship between the two persons which is primarily governed by trust.


A power of attorney document is an extremely important part of estate planning. It is considered expedient and necessary to have someone else act for you when there is an advancement in the business and commerce transactions.


Connect with an expert lawyer for your legal issue

 


What are some important facts about POA?

A Power of Attorney that has not been executed correctly holds no value.


A POA needs to be authenticated by a notary public certifying the mental soundness of the principal at the time of signing.


It is not compulsory to register a POA in India. However, it is advisable as getting a POA registered adds to its legal value. However, it compulsory to get a POA registered if it relates to transfer of immovable property.

 


What are the different types of Power of Attorney?

1. General Power of Attorney (GPA)

Under this vast powers are allowed to the agent to act on behalf of the principal. This type of POA can be useful to an individual when he is not in the country, or he is mentally incapable of taking care of himself and his affairs.


2. Healthcare Power of Attorney

This document enables the principal to nominate an individual who can make healthcare decisions concerning him when the principal himself is unable to do so. The decisions to be taken range from medical care and place of living to the food that the principal eats.


Consult: Top Documentation Lawyers in India


3. Financial Power of Attorney

This kind of Power of Attorney gives an agent the right to make financial decisions for the principal when he/she is either not present, or is unable to do so due to physical or mental incapability. Paying bills, making investment decisions, paying for healthcare and housing are some activities that require decision making under the Financial Power of Attorney.


 

What is Special and Durable Power of Attorney?

Special Power of Attorney

Specific powers are allowed to the agent by signing on this type of POA. If the principal does not wish to allow the agent to enjoy a wide spectrum of powers and requires to delegate authority only in respect of a particular task, he can do so by executing a Special Power of Attorney (SPA).


The validity of an SPA comes to an end as soon as the task(s) specified in it are completed.


Connect with an expert lawyer for your legal issue


Durable Power of Attorney

If the principal happens to become mentally unsound due to some reason while there is a POA in effect, he/she can sign a Durable Power of Attorney to ensure its validity or to avoid any kind of trouble later.


While preparing a POA, some important points to be kept in mind?


A POA cannot survive the principal’s death. I.e. the authority of an agent comes to an end as soon as the principal dies.


A POA can be cancelled in which case the agent and all such institutions where the agent acted on behalf of the principal should be notified in writing.


An individual of high integrity who can always be trusted to act in the principal’s best interest should be chosen as an agent.


Any suspicion of wrongdoing on the part of the agent should be reported to a law enforcement agency, or professional legal advice should be taken.

Comments

Popular posts from this blog

Concept of constitutionalism

  Concept of constitutionalism Who Started Constitutionalism? John Locke - The English Bill of Rights is a foundational constitutional document that helped inspire the American Bill of Rights. Political theorist  John Locke  played a huge role in cementing the philosophy of constitutionalism.  Constitution is a written law which describes the structure of Government, the rules according to which the Govt. must work and the boundaries within which the Govt. must work. Constitutionalism   can be defined as the doctrine that governs the legitimacy of government action, and it implies something far more important than the idea of legality that requires official conduct to be in accordance with pre-fixed legal rules. Constitution constitution is the document that contains the basic and fundamental law of the nation, setting out the organization of the government and the principles of the society. Basic norm (or law) of the state; System of integration and organi...

business tips

1. Have a clear vision for your business and strive to achieve it. 2. Hire great people and give them ownership in the company. 3. Provide excellent customer service. 4. Establish yourself as an expert in your field. 5. Develop relationships with key suppliers, customers, and partners. 6. Keep track of your finances and invest in marketing and innovation. 7. Utilize digital platforms to reach a larger audience. 8. Take calculated risks and back yourself. 9. Continuously strive to improve your products and services. 10. Make customer satisfaction your priority.

Effects of Non-Registration

 Effects of Non-Registration The Companies Act, 2013 evidently highlights that the main essential for any organization to turn into a company is to get itself registered. A company cannot come into existence until it gets registered. But no such obligation has been imposed for firms by the Indian Partnership Act, 1932. If a firm is not registered it does not cease to be called as a firm, it still exists in the eyes law. Certainly, such a big advantage is not absolute but is subjected to a lot of limitations which we will study further. Non-registration of a firm simply means that the business skips the formalities of incorporation and ceases to exist in the eyes of the law. section 58 of the Indian Partnership Act, 1932 deals with the procedure of incorporation. Likewise, the meaning of non-registration is the exact opposite of registration, meaning when a firm does not go through the procedure of incorporation or start carrying on activities without getting registered. Effects of ...