How to Make Power of Attorney in India
Listing of powers, in a legal document and authorizing one person on behalf of self to handle any or all legal, personal and health affairs can be termed as Power of Attorney. The power of attorney can be of two types-SPA (special power attorney) and GPA (general power of attorney). SPA enables a person to transfer a special right while a GPA holder can take any general decision. This is a very utilitarian document for any ailing person who can transfer the decision-making right to the attorney holder. The authority to give attorney can simply be used if you want somebody else to take your decisions on your behalf. Two parties are involved in this legal course, principal, who wishes to prepare the power of attorney and the agent, who would take over the right to make the decisions on principal’s behalf.
The power of attorney is also a very important document for those who are residing outside India. Usually, NRIs have a huge property set up in their country and they themselves cannot take care of the property. Hence, it becomes easier for them to authorize someone with Power of Attorney and handle issues on their behalf.
The person to whom you would be transferring the rights of decision making on your behalf should be the one, you have trust upon. It should not be the case when you have transferred all your decision-making rights, and the attorney holder misapplies it. The decision making is important here.
Determining the type of power of attorney, you want to authorize, is another crucial factor. A person holding a financial power of attorney has the rights to take all financial decisions on behalf of the principal. The attorney holder can produce this document at any banks or any financial institutions, where he/she as an agent can take financial actions.
A healthcare power of attorney authorizes power to take decisions related to medical. In these circumstances, principle becomes debilitated and stops taking correct actions. Legal guardianship or conservatorship needs to acquire if the principal is already mentally incapacitated and did not grant any power of attorney before. To be a legal guardian, one must be deemed in legal court to prove his competencies to take care of the personal affairs of the principal.
In the above scenarios, it is not necessary for the principle to authorize one person for both the types of attorney. He /she can appoint two different individuals for two different attorneys. And at the same time principal may choose only one agent for handling both the attorneys together.
A springing power of attorney grants power for a specific time period. If the principal is going abroad for a longer period, than he can authorize an agent to take measures on his behalf only till the time the date specifies in the document. Once the time frame ends, the document becomes null and void.
A springing durable power of attorney is another type, where the agent has the right to take action on the principal’s behalf, if the principal becomes incapacitated. The power to the agent will remain effective till the person is in the effect of incapacitation. This type of attorney is not legal in all the states, ensure before signing any such type of judicial.
It is advisable, that you choose your attorney holder very cautiously. A general power holder has the right to take all major actions on both financial as well your general issues.
A form is required to be filled by the principal and get it notarized, in order to transfer responsibility of action making, either for a short or long duration. The presence of legal advisor is quintessential while processing power of attorney. The form includes the name of both the parties, viz. the principal and the agent. The document would also mention, what kind of powers are being authorized to the agent, e.g.-power to take financial decisions or to take health related actions. This document also specifies any specific time span for which attorney is being prepared. The presence of witnesses, while deciding the different factors and finalizing them by signing the document is also important. Not all, but most of the situations require a witness to be present at the spot. The language of the document should not be ambiguous. The rights of the attorney should be put in such a way that it does not create unnecessary confusion.
Revocation of Power of Attorney can also be done, If the principal decides to take back the authority from the agent before the attorney expires. It is a discrete decision of the principal to revocate the attorney rights and agent has no power to change this action.
Make sure that you preserve the attorney document in a safe place. Being a legal document, someone might misuse it.