Power of Attorney in India

By: timjhonson | Posted: 05th May 2010

Planning for unfortunate events such as serious illness or injury is rarely on anyone's list of favorite pastimes. Sometimes, though, enduring the small discomfort that may accompany preparing for the unexpected will avoid untold anguish on the part of your family and friends.
If an individual is unable to sign a contract the attorney-in-fact is also unable to sign a contract for the principal. But if you have a Durable Power of Attorney the attorney-in-fact is allowed to execute the powers granted by the principal even after the principal becomes ill.
A Power of Attorney is a useful and powerful tool. Unfortunately, as with many things, something with a good purpose still can be used for improper purposes. A general Power of Attorney allows the Agent or Attorney-in-fact to do almost anything the Principal could or might do herself.
Waiting until one becomes unable to coherently express one's wishes with regards to financial management decisions is too late, and a court-appointed conservatorship may become necessary. What about the successor trustee designated in my trust, or the executor of my will?
A power-of-attorney agent should not only be someone the person trusts and feels comfortable with but also someone with enough financial savvy to handle his financial affairs. If his finances are complex, the agent should be financially sophisticated.
Springing power of attorney is used in cases where the principal cannot actively give permission, either verbally or in writing, for someone to act as their attorney-at-fact. To obtain springing power of attorney, a doctor must certify that the principal is incapable of thinking for themselves and an attorney-in-fact is required.
A general Power of Attorney gives your agent the authority to do whatever you can do. Think very carefully before signing this type of document. It should be used sparingly. This document ends when you become incapacitated or die.
Along with specific powers that you grant, you can also specify a timeframe of the power of attorney. You can specify that it takes effect immediately, you can specify that it takes effect during a certain time frame (say August of next year), or you can specify that it takes effect upon a certain action.
Why would anyone give such sweeping authority to another person? One answer is convenience. If you are buying or selling assets and do not wish to appear in person to close the transaction, you may take advantage of a Power of Attorney.
By executing a Power of Attorney for Finances (also referred to as a Durable Power of Attorney for Finances) you can decide who you want to make decisions about your legal and financial matters.
Upon the death of the principal, the power of attorney becomes invalid. It also becomes invalid when the principal becomes incapacitated due to mental illness or physical injury unless a provision is made in the original power of attorney specifically exempting such provisions.
The difference between an enduring power of attorney and an ordinary power of attorney is that an ordinary power of attorney becomes invalid if the donor becomes mentally incapable, whereas an enduring power of attorney becomes effective, providing the necessary steps are taken.

Read About Legal Services India Also Read About Divorce India and Power of Attorney India
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