What is Power of Attorney (PoA)
- Power of Attorney (PoA) refers to the authority granted to an attorney via a document called PoA to manage the affairs of the client on their behalf.
- The power granted to them can be limited or broad, depending on the power the agent allows them in specific situations where the client/agent themselves aren’t able to handle the processes for any reason, not limited to illness or disability.
- PoAs differ in varied situations with special powers, and the power can be retracted or terminated accordingly and the PoA stands invalid.
Understanding Power of Attorney (PoA)
PoAs can be found in limited agency or in general power. An agent or attorney under general PoA has the power to issue, process financial transactions, file taxes and manage other immediate and necessary obligations without constantly consulting the principal. This is unlike the limited power of an agent, where the power is available to handle only select affairs of the principal.
A PoA can be offered not just to an attorney but to also a trusted family member or a friend. Choosing a PoA is entirely dependent on the trust you as the principal have with the person who will be your agent. This agent will have the best interests and welfare in their mind, keeping themselves in check to not abuse the powers granted.
Highlights of Power of Attorney (PoA)
One can have multiple PoAs to act on the principal’s behalf, and can also work jointly with one another if it is specified as so. Having more agents can mean diversity in perspectives, therefore a balance in making informed decisions.
PoAs can only be chosen when the principal’s mental health is well and they are capable of making decisions for themselves, on which the agent has the authority to act. The only time the choice of PoA is questioned is when the principal is mentally ill or unable to make decisions for themselves.
In the earliest time, ‘power’ referred to a written document, signed and properly sealed under jurisdictions. Ever since, the documents have been necessitated merely by the principal’s signature, or in other cases, witnessed or notarized.
PoAs can be chosen for various areas of personal life, like that of maintaining financial obligations, health care, real estate, business etc.
