A power of attorney or POA is a document where an individual or agent acts on behalf of another individual (principal) because they (principal) are incapable of making their decision at the moment.
A power of attorney has rights that are bestowed by the principal for taking the necessary legal action when needed. This blog deals with general power of attorney for all purposes.
What is the meaning of a Power of Attorney (POA)?
The document is used to provide authorization or power to an individual (agent) to make decisions or legally act on the principal’s behalf. Their legal right can be specific or be for every purpose.
The agent can have limited rights as a power of attorney as per terms and conditions to make decisions regarding property, financial, medical, or business. Often, medically ill or disabled people choose an individual to be the power of attorney because they cannot be physically present everywhere or sign documents for legal purposes. Their lack of ability is the main cause for appointing a POA.
Who is generally chosen for POA?
Who is generally chosen for POA?
It is not mandatory to choose an attorney or a lawyer as a power of attorney. The principal can choose any person in a general power of attorney for all purposes or special power of attorney. It can be used for any trustworthy acquaintance, family member, or friend. The POA is governed by the Power of Attorney Act 1888.
It is, however, wise to choose a professional and reputable attorney for general power of attorney for all purposes or special power of attorney.
Giving such brief authorization to another individual is comparable to signing a blank cheque. So, it is crucial to understand what can be done to choose the right individual for POA and have a knowledge of the laws that apply to the documents by taking legal consultation.
What are the types of POA?
Power of attorney is divided into four categories as per their respective responsibilities and authorization.
- Conventional power of attorney
- A durable power of attorney
- Springing power of attorney
- A medical power of attorney
This type of authorization is also known as a general power of attorney for all purposes or limited POA. Such authority is limited to the duration and can be acted on accordingly. The general power of attorney, for all purposes, can make business-related, finance-related, and personal decisions with the rights bestowed.
This is used for a lifetime. The agent is allowed to make decisions in the absence of the grantor for such type of commitment. It continues for the grantor’s lifetime.
This kind of authority is appointed for a specified date, legal issue, or event. It can also be used by the principal when they are incapacitated.
The principal grants permission to the agent to make medical decisions. Generally, it is mentioned that the agent comes into action only after the principal loses the ability to move, talk or think.
What can a General Power of Attorney be for all purposes use its authority for?
The general power of attorney, for all purposes, can take the following actions as per their requirements and the rights bestowed by the grantor.
- Contracts/agreements: The general power of attorney for all purposes can enter, write or perform contracts and agreements. They can sign, execute or make contracts/agreements on behalf of the principal as per their terms and conditions stated in the documents.
- Real estate: The general power of attorney for all purposes can sell, purchase, lease, rent, exchange, or borrow real estate. They have the authority to execute all kinds of deeds, bonds, contracts, cheques, notes, and money orders as per the grantor’s wish.
- Financial: To withdraw or add money, make, execute, deliver or accept drafts, cheques or orders. The general power of attorney, for all purposes, can release or execute trust deeds when necessary. Accept or pay loans or borrows as needed.
- Tax and insurance: The general power of attorney, for all purposes, has the right to file tax returns and sign the documents or insurance forms as required. The grantor gives the agent such authority to take every decision related to this aspect of finance handling.
- Stocks and bonds: The agent or general power of attorney for all purposes has the authority to sell shares, bonds, or other securities. They have a right to deliver or accept any trading of stocks, bonds, or securities.
What are the eligibility criteria for a GPA?
A general power of authority for all purposes can be eligible if the following points are considered:
- The general power of attorney, for all purposes, should be able to understand what is stated in the form before signing it.
- The special or general power of attorney, for all purposes, must know and have access to communications with the grantor who will exercise their rights.
- The POA should be of sound mind, which means that it should be capable enough to make proper decisions on behalf of the principal.
- They should be above 18 years of age and legally valid to enter into contracts and agreements.
- The general power of attorney, for all purposes, should not be insolvent or bankrupt, as this will lead to an ineligible lead.
Requirements to register as GPA or POA
An individual can register themselves as the power of attorney or specifically general power of attorney for all purposes by following a basic procedure which is as follows:
- They should have a passport or identity proof with a visa stamp.
- A government agency shall approve and register the individual as a power of attorney.
- A power of attorney is required to be above 18 years of age and of sound mind to become a general power of attorney for all purposes.
General Power of Attorney, for all purposes, is a crucial document one can make as it gives broad authority to an individual who can make important decisions, so taking legal consultation is necessary to understand the process.