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What is a Power of Attorney?


What is a Power of Attorney?

A POA is a legal document that designates a specific person as having the authority to act on behalf of another. A POA thereby grants the agent or attorney-in-fact the power to act in the principal’s place. The principal’s property, finances, investments, and medical care may be subject to the agent’s decision-making, which may be given broad or limited discretion.

How a power of attorney works?

A POA is a formal document that binds both the principal and the agent, also known as the attorney-in-fact. It is used when a principal is temporarily or permanently ill, disabled, or unable to sign legal documents. The principal must appoint a trusted POA to manage their business on their behalf. You can get documents online or via a lawyer. Both parties must sign the agreement. In most cases, it needs to be seen by a third party.

The majority of POA documents allow the agent to act on behalf of the principal in all real estate and financial concerns, provided that the principal is in sound mental health. The Agreement shall automatically terminate upon the Principal’s becoming incapable of making decisions for themselves.

A POA may expire for a number of reasons, including when the principal terminates it or passes away, when it is declared invalid by a court, or when the agent is no longer able to fulfill the specified duties. If the principal and the agent are a married couple, a divorce may render the authorization void.

No matter how unlikely such circumstances seem, anyone planning for unforeseen incapacitation or long-term care may want to consider a POA for use in case of necessity. Someone who anticipates being away from home and hard to reach for a while can also use it.


A durable POA must be signed if the principal wishes the legal representative’s authority to continue after their health deteriorates. A durable POA is one that continues to be in effect even if the person it is meant to represent becomes physically or mentally incapable. This might happen, for instance, if the principal experiences amnesia or a coma. However, a lasting POA expires upon the passing of the client. If the client develops mental incapacity when the POA is not marked as durable, the authority is revoked.

Special considerations

Making a POA assures that someone will handle your financial affairs if you become disabled, which is one of many solid reasons to do so. You want to pick a dependable relative, a tried-and-true acquaintance, or a respectable and sincere expert.

However, keep in mind that approving a POA that gives an agent extensive authority is very similar to writing a blank check, so make sure you make a prudent decision and are aware of the regulations that are relevant to the instrument.

Types of powers of attorney

POAs come in four main categories. Here, we go over each of them individually.

1. General power of attorney

A general POA gives an agent considerable authority to manage the business of a principal. The agent, or the person assigned to act on the principal’s behalf, has a number of responsibilities. The duties include purchasing or selling real estate as well as establishing business contracts on the principal’s behalf.

2. Limited or Special Power of Attorney

Limited or special powers of attorney are the best options for someone who wants to restrict the agent’s authority. The extent of the agent’s authority must be specified in as much detail as possible before the limited POA is signed and notarized. It is essential to consult a legal advisor if someone is unsure of what should be covered by the special POA.

3. Durable Power of Attorney

Only during the time when the person wanted someone else to act on their behalf is the durable sort of POA valid. A non-durable POA expires upon revocation or at the earlier of the set expiration date. But what will happen if the agent gets incapacitated? The POA: will it still be effective?

In this situation, the principal would desire that the POA continue in effect even if he or she lost the ability to speak. A durable POA can be used to specify, for instance, that the spouse should act as the agent if the principal falls unconscious. The POA grants the spouse authority to make choices even if the principal is unconscious.

4. Medical or Healthcare Power of Attorney

The principal reserves the right to select the level of care they would like in the event that they become very ill. In the event of a life-threatening illness, a medical or health care POA allows the agent to make decisions on the principal’s behalf. Because they take into account the possibility that the principal may be too ill to make their own decisions, the majority of health POAs fall under the durable category.

Before selecting an agent in any of the aforementioned situations, the principal should consult with counsel. Additionally, it is best for the principal to have the attorney guide them through each step of notarizing a POA so that they are aware of what should be included in the document.

How Power of Attorney Works?

The governing body may purchase or obtain POA templates. If either of the two techniques is used to obtain the template, the principal must make sure they are residents of the state in question. The principal should not presume that the documents obtained are the right kind since POA documents are highly crucial. Before the POA process can start, the POA paperwork must be verified.

Finding a family law attorney in the principal’s home state is the ideal option for them to begin the procedure. There is an alternative to going to a legal services office if the associated legal bills are significantly more than the principal can afford. As an alternative, the principal can connect with a legal assistant through the Legal Services Corporation website. Principals that qualify may attend for no cost.

It is required to get the principal’s signature notarized in many states. The witness’s signature may occasionally need to be notarized as well. There are also some legal restrictions that don’t often apply. There isn’t a standard POA principal form, for instance.

The principal’s place of residence affects the procedures and laws. Even though the enduring POA is widely recognized, many powers—such as the ability to make or amend a will, enter into a marriage, or vote—cannot be transferred by the principal.

How to setup a power of attorney?

A POA template can be purchased or downloaded. This document, however, might be too crucial to rely on the possibility that you received the right form and processed it correctly.

Choosing a power of attorney

A POA gives enormous ownership authority and obligation, much like the property deed for your home or car. In the instance of a medical POA, it is a question of life and death. And if you wind up with a mismanaged or abused durable POA, you can find yourself in financial difficulty or even declare bankruptcy. In order to ensure that your wishes are carried out as fully as possible, you should choose your agent carefully.

It is crucial to appoint a skilled and trustworthy person to act as your agent. Any errors made by your agent may be challenging to remedy because they will be made with the same legal authority that you would have. Even worse, there may be a risk of self-dealing, depending on scope of authorities you grant. Your bank accounts may be accessible to an agent, who may also have the authority to give gifts, transfer money, and sell real estate.

Any competent adult, including a specialist like an attorney, accountant, or banker, may act as your agent. However, your agent could also be a member of your family, such as your spouse, a grown child, or another relative. By appointing a family member as your agent, you can avoid paying the fees that a professional would charge while simultaneously keeping your finances and other private affairs “in the family.”

General risks in naming a power of attorney

The POAs you have made should be reviewed and updated as your family’s needs change. A POA can be revoked by merely identifying it in a letter, stating that you renounce it, and giving the letter to your former agent. Some states demand that a letter of this nature be notarized, just like the paperwork itself. Sending copies to any other parties the agency may have dealt with on your behalf is a smart idea. After that, draft a new POA and provide it to your new preferred agent.

What does having power of attorney do?

A POA is a legal designation that enables someone to act in your place. Depending on how it is stated in the POA paperwork, the person designated as POA may have extensive or limited legal authority to make decisions regarding a person’s property, finances, or medical directives.

Can somebody with power of attorney do anything they please?

No. When a POA is established, the extent of the legal authority it grants is specified. Furthermore, the holder of a POA has a legal obligation to act in the best interests of the person they are acting as the representative of.

Can next of kin override a power of attorney?

No, a POA already in place cannot be revoked or annulled by next of kin or other family members under any circumstances.

How can I revoke power of attorney I have given to somebody?

You can end a POA if you explicitly do so. It might also have a predetermined end date or period of time that it will be in effect. Unless it is a durable POA, it will likewise expire if you lose mental capacity. All powers of attorney expire upon your death.

Who can I name to have power of attorney?

As long as it is done of your own free will and you are mentally competent, you are legally allowed to designate anyone as your POA. It should be a reliable and competent person, like a spouse, member of the immediate family, or a friend. You can also assign a POA to your attorney.

Though it is possible to designate more than one person as POA, doing so is not advised due to the potential for misunderstanding and disagreement.

General power of attorney sample for property

BE KNOWN TO ALL BY THESE PRESENTS THAT I,————————– (hereinafter called the EXECUTANT), do hereby appoint, nominate, authorize and constitute ——————————————————————————-as my true legal and lawful

General Attorney in respect of my property bearing the number -(Give the number of the property) ———————————- with the free hold rights of the land under the said flat.

I hereby authorize my aforementioned attorney to take the following actions on my behalf and in my name:

  1. To sign the sale deed and have it registered with the registration authorities, as well as to manage, control, and oversee the aforementioned apartment in every way. She is authorized to sign any appropriate documents, such as affidavits, undertakings, and other forms, on my behalf. She can eventually obtain an additional rectification deed for this apartment.
  2. To execute the aforementioned selling agreement, collect the earnest money and, if applicable, a partial payment, enter into the sale agreement, and receive the full purchase price in his own name.
  3. To complete the sale deed, sign it, make sure it is accurate, and then present it for registration in the office of the subregistrar in Delhi. You will also need to accept the sale proceeds, make statements, and perform any other formalities that are required.
  4. To submit an application and get the required “No Objection Certificate” from the relevant departments.
  5. To enter into a rental agreement for the aforementioned apartment or a portion of it; to execute a rental agreement; to receive an advance payment; to provide security; to issue a rent receipt; to deliver possession; to evict the tenant through legal means or through negotiation; and to regain ownership of the aforementioned apartment.
  6. To obtain permission for selling this flat from the competent authority in his favor or that of his nominee and fulfill necessary formalities in this regard.
  7. To sign all kinds of prescribed forms, affidavits, undertakings, and documents on my behalf.
  8. To get the aforesaid flat transferred and mutated in the record of the concerned authority.
  9. To make a will involving this apartment in favor of anybody he chooses. This means that the WILL I signed about this specific apartment will be regarded as revoked.
  10. To submit a building plan, along with any necessary cost estimates, etc., for additions and adjustments to the aforementioned apartment.
  11. To pay any outstanding fees and claims to the relevant authority, including house tax, electricity, and water charges.
  12. To perform the following acts, things, and things under his own signature for any of the aforementioned purposes:

(a) To send communications, make representations, petitions, and respond to letters and notices.

(b) To execute, submit, and present documents, etc.

(c) To sign, file, and execute declarations, surety bonds, undertakings, no-objection affidavits, etc.

(d) To provide evidence and make statements.

  1. To execute, sign, and present all forms of court documents related to the aforementioned apartment and its administration, including plaints, complaints, appeals, revisions, statements, and applications.
  2. To proceed with the conduct of all court proceedings for this flat and its management and appoint an advocate for the purpose.
  3. To compromise, compound, or withdraw court cases; designate architects to move arbitration proceedings forward; employ attorneys; deposit and withdraw funds; execute judgments; receive and recover judgments; issue receipts; and conduct other appropriate actions.
  4. To appoint anyone else as further General Attorney with such power as are considered necessary by his for this flat and to delegate all these powers on the said attorney.
  5. I admit that this general POA shall remain irrevocable under all circumstances.
  6. I, the executant, have also executed an agreement to sell in respect of the said flat and on the request of the said purchaser. I have executed a general POA in favor of the said ——————————so as to conclude the sale after the registration of the conveyance deed of the said flat in his favor or in favor of his nominees, and I also hereby ratify and confirm that all acts, deeds, and things done by the said attorney for this flat shall be binding on me in all respects.

IN WITNESS WHERE OF I have executed this general POA at New Delhi on this—————day of —————————————————in the presence of the following witnesses.




We conclude by saying the following:

  • A POA is a legal document that grants someone the authority to act in another person’s place.
  • The principal is the object of the POA, and the agent or attorney-in-fact is the one who obtains the authorization.
  • The agent’s legal ability to make choices about the principal’s possessions, income, or medical care may be extensive or restricted.
  • When the principal cannot be present to sign the required legal paperwork for a financial transaction, the POA is frequently used.
  • Even if the principal becomes ill or disabled and is unable to act directly, a durable POA is still in effect.

The bottom line

You can make sure that you have a strategy in place for managing your financial affairs and health directives if and when you become unable to do so by establishing a POA and describing how it will function even if you lose your capacity to think or function. Choose someone you can rely on and who will be able to carry out their duties on your behalf with integrity.

A POA is a legal document that grants the principal’s agent the right to act on the principal’s behalf. The agent may be given either limited or unrestricted power to make decisions on behalf of the principal about his or her health, property, or finances. When a person is incapable of making their own decisions and is incapacitated, a POA is frequently used.

We anticipate that this blog will be interesting to all the enquiring readers who are interested in learning the fundamentals of the notion of POA based on our discussion so far.


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