What is the Full Form of POA?
Full Form of POA is Power of Attorney, we will discuss it’s work, reasons, types of poa and risks in granting them. So stay tight and enjoy the information.
Power of Attorney may sound a bit complex but it’s actually much simpler than you might think.
- It’s a notarized document that grants another person the power to act on your behalf for a certain purpose and time frame.
- The person granting the power is called ‘Grantor’ or ‘Principle’. The person receiving the power is the Grantee, Agent or Attorney-in-fact. Now, this doesn’t mean that the person receiving the power should always be an attorney or a lawyer, it can be anyone over 18 years of age.
There are many reasons to grant a Power of Attorney. They are helpful when you’re unavailable or you’re unable to act on your own and you need someone to act on your behalf.
These are common reasons for granting a power of attorney.
- Family Care: Authorizes agents to take temporary custody or care of the grantor’s children.
- Mail: Authorizes agent to retrieve the grantor’s mail.
- Personal property: Authorizes agent to buy or sell properties on behalf of the grantor.
- Insurance: Authorizes agent to ensure grantor’s properties.
- Banking: Authorizes agents to access the grantor’s bank accounts.
- Legal issues: Authorizes agents to represent the grantor for legal affairs in court.
Power of Attorneys can be handy. Authorizing another person to act on your behalf involves inherent risks that you must understand. By granting the power you become legally bound or responsible for the actions taken by your agent. So, it becomes crucial to grant power to someone who can be trusted unconditionally. To avoid the potential misuse of power you should consider below-written points:
- Only grant powers as needed. Also, you should limit the scope of power. A great way to do this is making it a Special Power of Attorney, that only grants power for a specific purpose and a limited timeframe.
- Only grant power to a fully trusted agent to accomplish the task. You can also revoke the powers in case there’s a breach of trust and confidence with your agent.
TYPES OF POA:
Generally, POA is classified into 4 types.
General Power of Attorney:
The General Power of Attorney is one that permits the agent to freely perform any or practically every kind of task, mission, business or financial transaction on behalf of the grantor without any restraints or barriers.
Special Power of Attorney:
The special power of attorney is granted to empower an agent to perform a specific task or mission for a limited period of time. That’s why it’s also known as limited power of attorney.
Springing Power of Attorney:
Springing power of attorney is written for a specific purpose only to come into effect as soon as the principle signs it. But, the principal can declare that the power of attorney comes into effect only and only upon the occurrence of the declared event. In other words, it “springs” into effect at a later mentioned date.
Durable Power of Attorney:
This particular type of power of attorney specifically offers the seizure of the agent’s authority once the principal becomes mentally incapacitated. On the contrary, a power of attorney may declare explicit continuation of the granted authority irrespective of the principle’s mental health status.
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