A “Powers Of Attorney” is a grant of legal rights and powers from one person to another person. The person providing powers is known as “Principle” and the person receiving power is known as “agent” or “attorney-in-fact”. The agent is essentially standing in the principal shoes and works for it /. On financial matters if this is said in the documents, then the agent can do anything major in financial transactions – withdraw bank accounts, trade stocks, payment of bills, and cash checks. Choosing this person with care is important because it can control your property.
For reasons such as extended travel or illness, the Powers Of Attorney can be very easy, because someone is unable to take care of their own financial matters. This type of document becomes even more important, however, in the case of mental inability. A standard Powers Of Attorney will eliminate the mental disability of the principal. However, to provide the principal with financial management’s safety net, an Enduring Powers Of Attorney will continue beyond mental inability or disability. When an “Enduring Powers Of Attorney” does not provide, members of a family suffering from a mentally disabled illness should often resort to court proceedings to obtain legal authority to handle their loved ones financial affairs. Probate process can be time-consuming and is an expensive process, which can be avoided if there was a legitimate sustainable power of the attorney at some place.
While preparing the document, the principal should consider specific types of transactions or accounts, which are likely to be financial institutions dependent on the document, and the nature of the principal-owned accounts for the acceptance of the document. Verifying the authority of the attorney-in-fact to work for the owner of the account, therefore, is the first priority of every financial institution, and each principal and its agent should determine this requirement. Although, the special Powers Of Attorney can provide the agent with very broad powers, but it does not give the full authority to take the agent’s money and escape with the principal. The agent should use all the finances for the principal’s benefit. In other words, this is a management tool. The principal can give comprehensive or limited financial management to its appointed lawyer. For example, you can limit the duration of the instrument to the duration of time or limit the powers that you give to the agent. Before you sign the power of the grant and attorney, make sure that you really understand what you want to do in your place.
Your changing needs may require modification of the existing Powers Of Attorney; it ensures that it does what you need to do and nothing else. Therefore, it is a good practice to review all of our legal instruments (Powers of Attorney, Wills, etc.) from time to time. Having a little time in reviewing and revising the May has a lot of trouble later on.
It is important to note that the Powers Of Attorney does not snatch the rights of the principal. This is similar to handing over the key to another. Just as the keys can be withdrawn, can the Powers Of Attorney be cancelled as well? Both the standard and Enduring Powers Of Attorney will be over at the death of the Principal.