Definition: Power of Attorney
Through the use of a power of attorney (POA), a person (referred to as the “principal”) can designate another individual or entity to handle their affairs in their place. Depending on the kind of power of attorney issued, this designated individual, often called the “agent” or “attorney-in-fact,” may make decisions for the principal regarding finances, legal matters, or medical treatment.
Movie Case Study
The above scene comes from the movie Hero Hindustani. Purushotam Harnam Agarwal (played by Paresh Rawal) decides to give the power of attorney to Romi Pratap Singh, his son-in-law. This power of attorney would enable Romi to make decisions for the company, and his signatures would be enough for banking & business dealings. In this blog, Learning Perspectives will explore what the power of attorney is.
Types of POA
General Power of Attorney:
A general POA gives the agent extensive authority to represent the principal in a variety of situations. It is frequently employed when the principal requires someone to manage their business in the short term, like in the event of an illness or absence.
Special Power of Attorney
This gives the agent particular authority for a constrained time or purpose. For instance, while a person is abroad, the principal may permit them to sell their home.
Durable Power of Attorney
In the case of the principal’s incapacitation, this still holds. It is helpful in circumstances when the principal needs someone to handle their business if they are unable to do so because of illness or accident.
Healthcare Power of Attorney
Also referred to as a medical power of attorney or healthcare proxy, this document gives the agent the right, if the principal is unable to make decisions for themselves, to make medical decisions on the principal’s behalf.
To guarantee that a principal’s affairs are handled according to their preferences if they are unable to do it for themselves, POAs can be a crucial component of an individual’s estate planning. It’s important to carefully assess who should be appointed as an agent and to make sure that the document makes explicit the rights that are conferred. It is frequently advisable to get legal advice to make sure that the POA satisfies all legal requirements and sufficiently safeguards the interests of the principal.
