A POA (power of attorney) is a legal instrument[1] signed by the principal to designate a representative, legally known as a POA agent, to act on his behalf in the event that the principal is unable to handle his own legal, personal, and financial affairs.
Need of a POA (Power of Attorney)
Every adult should have a power of attorney because of the possibility of becoming ill and being unable to handle financial and legal obligations. This crucial legal instrument helps the POA grantee take care of matters that he is unable to handle.
The outcomes an individual can get from appointing a POA have pros and cons. whatever the principal chooses, he must be proactive and approach the POA agent in a deliberate manner. He should select an agent who can meet his specific needs under power of attorney. There are various ways of writing a POA agreement, so the principal should draught it accordingly, carrying out an action plan that works for him and for his benefit. There are several factors to take into account while making a power of attorney that meets the principal’s specific needs.
Steps for Obtaining a POA (Power Of Attorney) to Meet Your Specific Needs:
If a person wants power of attorney which meets his specific needs, the steps listed below will assist you in obtaining a power of attorney:
Step 1: Choose an Agent
When the principal is unable to make decisions for himself, the principal should appoint a representative or agent. An agent should be of the principal’s choice because he is in charge of the principal’s personal, financial, and health-related matters. While choosing a POA agent, the following should be taken into consideration:
- If necessary, appoint more than one person.
- Can you trust him or her to make decisions for you? Or can he make logical, reasonable, and beneficial decisions for you?
- Can this person make decisions under stress?
Most people appoint their spouse as their proxy. But it is also common to name children or adult relatives. Whoever you choose, make sure they can count on acting on your behalf.
The majority of people designate their spouse as their proxy. But naming adult children or relatives is also typical. Make sure whoever the principal chooses takes decisions in the best interest of the principal.
Step 2: Arrange a Consultation with a Lawyer
Hire a lawyer to guide you through the procedure. An expert attorney can help you prepare the required paperwork and offer helpful guidance. He will help you find solutions to crucial legal problems and will give you a clear view of the legal outcome of your choices.
Choosing Your Agent:
The principal should choose an agent whom he can trust and who won’t use him. The principal should choose an agent who is wise enough to ask for help or assistance when necessary and trustworthy enough to act in his best interests. Don’t choose someone as your agent under any obligation; choose who you think does the best work.
Gifts:
The principal must specifically state in the POA agreement whether or not an authorised representative (POA agent) should be allowed to provide gifts.
Mention Exact Expectations or Responsibilities:
The principal should make sure not to get caught up in the specifics of what your agent can and cannot do, or else it will delay the POA agreement and won’t be of any use if any emergency arises. He should specifically mention what his exact expectations are out of the POA agreement and what responsibilities should be carried out by the agent.
Vault:
The principal can also give the POA agent access to his personal vault, where he keeps his original documents or any other valuable things, so that there won’t be any problem for the agent in dealing with an emergency or taking a decision related to it. If the principal doesn’t want the POA agent to grant power or access to the vault, he can also specifically mention it in the POA agreement.
Permission to Purchase or Sell Property:
The principal has the power to approve the POA agent’s sale or purchase of property, including his house. The POA document might be made even more adaptable so that the principal could give the POA agent permission to sell a certain piece of property or even specify that the selling price must be higher than a specific threshold. The same can be done in the case of purchasing the property. Don’t get too specific because nobody can predict what the future may bring.
Mention Exact Restrictions or Limitations:
The POA agreement the principal has created may allow him to list specific limitations or restrictions on POA agents. Again, take care not to get too technical. If a person chosen by the principal is trustworthy, then the principal can allow him to make any decision, but he can still mention some restrictions or limitations if necessary. For example, the principal can allow an agent to sell or purchase any property, except for any particular property specifically mentioned in the POA agreement that is the principal’s personal house.
In case the principal has a hobby of collecting old notes and stamps, he can specifically mention that the POA agent can only sell stamp collections. In case the principal started collecting old notes after making the POA agreement, he can update the POA agreement to state whether the POA agent has permission to sell his old note collection or not.
Conclusion
A power of attorney is one of the most crucial documents you may create when it comes to managing personal affairs. When the principal is unable to act for himself, this document gives power to someone else to act on his behalf and make decisions. A principal can create a power of attorney that meets his specific needs. There are various ways of writing a POA agreement, so the principal can choose an agent of his choice who is trustworthy and make decisions for the betterment. The principal can also arrange a consultation with a lawyer regarding the procedure. The principal can allow the agent to make decisions and grant power to do so, listing exact expectations and also listing restrictions or limitations.
Read Our Article: Different Types Of Power Of Attorney And When To Use Them
