Power of Attorney is a common term in the legal platform. The wide-ranging denotation of the word is to allocate authority or power to another and chose individual. There is a lot more to tell about the term.
WHAT IS POA?
It is a legal document to lawfully assign someone on behalf of individuals, to be allowed to execute or take control of the affairs they are unable to do.
It is not always necessary to provide the influences or transfer the authority once the principal dies. If for any reason the principal is incapable to accomplish any specific obligation on the given time, an agent is established to complete the same task.
WHO IS ATTORNEY?
There is always two parts in this process; the one who gives the authority and another who is given the established order. The person who is passing on the authority is called the “principal”; who gives all or certain powers or rights to another person who is called his “Attorney-in-fact” or “Agent.”
An attorney is habitually the person who acts as the principal in the court. The agent or the attorney is not essentially belonged from a legal training background, while a lawyer is someone who has a proper law training; that is the fundamental difference between attorney and lawyer.
WHAT IS A GENERAL POWER OF ATTORNEY?
A general POA is the form which is used most frequently, where there is a need of establishing one.
A general POA constantly prioritizes the controls of the primary person and acts on behalf of the principal. A general POA is the most shared and most used form of POA, and it gives its agent the authority of some limited activities like signing Cheque, handling bank accounts, selling properties and stocks, etc.
OTHER TYPES OF POA:
There are different types too, and the principal can select the one which is most applicable to him/her and for the purpose for which he/she is appointing his/her agent. The choice of the types of Power of Attorney depends upon the situation and the requirement of the Principal.
The most common types of POAs are:
- Corporate etc.
WHAT IS NON-DURABLE POWER OF ATTORNEY?
A non-durable is taken in accomplishment for a particular period or more specifically for a specific transaction. If the principal is incapacitated to complete the operation on the given period, the Non-Durable Power of Attorney comes into action to complete the process on the principal’s behalf.
The Non-durable Power of Attorneys can be effective immediately after the principal requests for it and also can be revoked on demand as well as upon the death of the principal.
WHAT IS A DURABLE POWER OF ATTORNEY?
This is among the most common types of Power of Attorney, and it leaves the Agent with full control of the Principal’s affairs. Even if the principal is unable to take a decision the agent has all rights to do so on his/her behalf. Without a durable power of attorney, if the principal becomes incapacitated, no one can represent the principal until the court appoints a guardian.
Like the Non-Durable, it does not have any time set, and it can be effective immediately after the incapacitation of the principal. The Durable expires with the death of the principal.
WHAT IS A SPECIFIC POA?
Specific POA gives the authority of Power to the Agent for some particular purpose. For Example signing a deed, selling the property and so on. It is for a day or so or a strict period. The time ends explicitly as mentioned in the document.
The Specific POA is also called as ‘Special’ Power of Attorney and gives the agent the authority to handle investment, financial and even banking affairs of the principal. Similar to the Non-Durable POA, the specific POA is also used primarily for a single transaction, where the principal is unable to complete that due to incapacitation, illness or any other reason of unavailability.
HOW TO CREATE A POA?
Creating a POA or establishing an agent is easy either by the principal itself or by hiring a lawyer.
To establish an Attorney the principal may take help of his family lawyer or any law firm. The individual needs to make evident that he or she is in the sound state of mind. It is always prudent to create a power of attorney way before if there is any risen possibility of concern even if the principal doesn’t use it in the future.
The principal must advocate someone whom he/she wants to authorize as his/her agent, and also the principal can approve the power to the agent according to his obligation and choice. The terms and the accountabilities and authorizations can be altered or reformed later in the future if the principal wishes so.
Once the court authorizes, it becomes active, and it is essential for the principal to understand the Power of Attorney is a vital legal agreement, but it never outshines his/her decision-making ability.
WHAT ARE THE FORMS OR DOCUMENTS REQUIRED TO CREATE A POA IN USA?
Though one can approach the family lawyer to establish a Power of Attorney, one can apply for it by their own. The State court allows the individuals to file the Power of Attorney and all the related and essential forms are available on their websites.
The principal can authorize its agent through various areas like Clerk offices, Attorney offices, and other state departments.
For the United States you may rely upon:
SOME COMMON TIPS FOR THE PRINCIPAL WHILE ESTABLISHING A POA:
- It is always sensible to authorize someone who is immeasurably reliable.
- Choose the suitable type for your purpose.
- Even if it’s not still compulsory, but the forms and agreements must be sealed and notarized.
- It must be recorded and filed with the court or a government office before making it valid.
- Name the powers granted judiciously while establishing the authority of Attorney