Types of Power of Attorney
There are several types of Power of Attorney, each serving different purposes but the main ones we deal with are the following:
- General Power of Attorney: This gives the agent broad powers to handle financial and legal matters on behalf of the principal, such as managing bank accounts, paying bills, or buying and selling property. It is often used for a limited period—for example, if the principal is travelling abroad.
- Special or Limited Power of Attorney: This type is more restricted and grants the agent authority only over specific tasks or transactions. For instance, the principal might authorise the agent to sell a particular property or manage a specific investment account.
Common uses for a Power of Attorney
Our clients typically use Powers of Attorney to authorise third parties based overseas such as lawyers, business associates, colleagues and family members to deal with matters on their behalf in a foreign country. Typically this includes acting on behalf of a company to deal with overseas company matters such managing bank accounts, employing or engaging staff and handling tax and business affairs. From an individual perspective, our clients often use Powers of Attorney to buy, sell or manage property in overseas countries.
How to Create a Power of Attorney
To create a valid Power of Attorney, the principal must be mentally competent and must sign the document voluntarily. It usually needs to be witnessed and, in some jurisdictions, notarised or registered. Choosing a trusted person as the agent is crucial, as they will have significant control over the principal’s affairs.
Revoking a Power of Attorney
A POA can be revoked at any time, as long as the principal is mentally capable. It also ends automatically upon the death of the principal, when the executor or administrator of the estate takes over responsibilities.
Use Power of Attorney to plan for the future
A Power of Attorney is a powerful legal instrument that helps people plan for the future and ensure their affairs are managed according to their wishes. Whether for financial management or medical decisions, it provides peace of mind and continuity when it’s most needed.