Power Of Attorney – Get Someone To Act On Your Behalf
The Power Of Attorney (POA) is a legal document that appoints an entity (a person or an organisation) to act on behalf of another person. The authorizing person is called the principal while the one being authorized or appointed is called the agent or the attorney-in-fact. The POA comes in handy both in personal or business affairs and for almost any kind of legal transaction whenever the authorising person is not available to do so.
When Do You Need A Power Of Attorney?
Use it to allow somebody to execute some business or legal transactions when you’ll be going out of the country. This means you permit your appointed agent to manage your affairs on your behalf while you’re away for a vacation or for business. Another instance is when you intend to protect yourself or your family’s interests in case you get mentally incapacitated or contract a terminal illness, in which case a lasting Power Of Attorney is prepared.
Business proprietors make use of the POA for many reasons, including buying and selling of assets, notes or real estate, or when getting into a collaboration with other firms for a brand new business venture. In the case of real estate investors, they use the POA to allow an agent to buy or sell a property. If it’s the latter, the agent is also authorized to collect money arising from the sale.
Other instances where the POA is used include, but not limited to the following: all kinds of banking transactions; purchase of life insurance; settlement and collection of arrears; settlement of claims; signing of cheques, contracts, or other legal documents; buying and selling of stocks; application for loans; filing of income tax returns; and claiming of government benefits.
Types Of Power Of Attorney
There are basically two types of POA – (1) special or limited; and (2) general. The special POA authorises another person to do a specific transaction or dealing for the principal. Such transaction should be clearly indicated in the document, which is the only thing that the appointed attorney-in-fact can do on behalf of the principal. The general POA, on the other hand, encompasses multiple areas of the principal’s life. It grants the agent the right to handle multiple transactions on behalf of the principal, which means that the provision is not limited to a specific purpose.