Everything about a Special Power Of Attorney:
Generating a special power of attorney document can help people acquire a lot of special legal powers that they can exercise in order to make some decisions on your behalf. Without the help of a legal advisor and the correct understanding of this documentation, you can land up in the middle of a lot of mess without even doing anything wrong. To get acquainted with legal terms and the jargon, you must contact a good lawyer who will help you out with all the formalities and even the acutely difficult dialect. Here’s everything that you need to know before assigning someone as your special power of attorney legally.
What is a Special Power Of Attorney?
A special power of attorney is a legal document or contract that allows any person (most commonly referred to as an agent) to act on another’s behalf (the principal, or the one who wishes to prepare the document). When the principal is unable to make decisions for himself, he passes on the duty to his agent. This Special power of attorney is mostly property specific. It is irreversible, and the principal must agree to the special power of attorney.
For example, it works well for a special power of attorney format for NRI – If you are out of the country and also unable to complete a business transaction yourself, or if your abilities are limited due to any medical condition, you might need a special power of attorney. The grantor or principal is the individual who begins a special power of attorney document, whether verbally or in writing. The attorney or agent is the person identified in the agreement as the authorized person. The acts that the agent can conduct under a special power of attorney are confined to extremely particular conditions.
Features of a Special Power Of Attorney:
Power of attorney can be of different types and categories. Namely, General Power of Attorney, Durable Power of Attorney, Special or Limited Power of Attorney and Springing Durable Power of Attorney. As the name itself suggests, the Special Power Of Attorney has some special features that we are going to talk about in the section below in detail. Let’s get to it:
- The special power of attorney allows a person (the principal) to determine another person (the agent) to act on their behalf in legal matters specified in the special power of attorney document.
- Only particular, well-defined conditions that are enumerated in the special power of attorney allows the agent to act on behalf of the principal.
- A general power of attorney is more expensive than the special power of attorney cost price, because it allows the agent to make all legal and financial decisions on the principal’s behalf.
Benefits of a Special Power of Attorney:
More than just the price of the special power of attorney documentation, there are many other benefits for the same. Let us go through some of the most useful benefits of a special power of attorney contract that you can design on your terms.
- The primary idea for using a special power of attorney for property is to make sure that your finances and other legal issues are managed the way you want them to be in a scenario where you are unable to do so yourself. If you’re in a terrible accident or become terminally ill, for example, your agent will be allowed to make certain financial or legal decisions but only in accordance to your orders.
- You must know that the special power of attorney is only valid for the duration of your life. If you were to die, the special power of attorney (real estate) would be revoked. Your assets would then be managed according to the terms of your will or trust if you have one. When someone dies without a will, their assets are dispersed according to their state’s inheritance rules.
Types of Special Power of Attorney:
Like any other category of power of attorneys, special power of attorney also has various subcategories based on its functionality. In this segment, we will talk about those different types of attorneys and when they can be used.
- Limited Power of Attorney – The limited power of attorney is a legal document that transfers authority from the principal to an agent for a specific transaction and for a certain period of time. Once the transaction is complete or the principal becomes disabled, the validity of limited power expires.
- General Power of Attorney – An agent with a general power of attorney can handle all of the principal’s business. The contract becomes valid right after the principal’s incapacitation and stays operative until his death because it has no such stipulated time restriction.
- Springing Power of Attorney – When a specified event happens or occurs that renders the principal unable to act, the springing power of attorney document is activated at a later stage.
- Medical Power of Attorney – In this case, the agent is given the authority to make essential medical choices on behalf of the principal in the contract of medical power of attorney. The contract becomes effective as soon as the presiding physician signs it.
Things to mention in the Special Power of Attorney Deed:
Below listed are the things that you or your lawyer must mention while formulating a special power of deed:
- Details of the Grantor – The name, age, residence, and occupation of the person who grants the power to the Attorney (Grantor) should be mentioned primarily and clearly on the paper.
- Details of the Attorney – The next section should have the name, age, father’s name, address, and employment of the person to whom the power is being authorized(Attorney).
- Reason for special power of attorney to administer property – A valid cause for transferring the powers should be mentioned, for example, staying overseas or being hospitalized and thus unable to be present and the like.
- Details of the performing act – One must mention the exact details of the act that the Special Power of Attorney for transfer of property has been allowed to do, such as presenting a document for special power of attorney sale of land or having the power to appear in court on behalf of the grantor.
- Date and Location– The day, date and location of the deed should be clearly stated, as well as the date on which the power of special power of attorney will be activated.
- Grantor’s Signature– The Grantor must sign the document of special power of attorney for house construction at the end, as well as at the bottom of each page.
- Witness Signatures – Two witnesses must sign the deed with their names, addresses, phone numbers, and dates, confirming the fact that they saw the Grantor sign the special power of attorney papers and authorized the attorney to do the needful.