• English - India
  • English
TAXAJ Corporate Services LLP - Financial Doctors

Power of Attorney | Appointing Authorised Representative

Power of Attorney is a legal document executed by one or more persons giving an authority to one or more persons to act on his or her behalf. Power of Attorney is governed by the Powers of Attorney Act, 1888. The person giving authority is called the attorney of the party giving the authority. The person receiving powers is called Power of Attorney holder. Normally, there is no requirement for registration of Power-of-Attorney. However, if the Power of Attorney creates an interest in any immovable property, then the Power of Attorney must be registered. Power of Attorney can be authenticated before a Registrar or Sub-Registrar within whose district or sub-district the principal resides and in case a Power of Attorney is executed outside of India, it can be authenticated by a Notary Public or any Court, Judge, Magistrate, Indian Counsel or via Counsel or a representative of the Central Government.

A power of attorney (POA) or letter of attorney is a written authorisation to represent or act on another’s behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the other. The person authorising the other to act is the principal, grantor, or donor (of the power). With Power of Attorney, you can give someone the ability to :

  • Write Cheques
  • Sign official documents
  • Handle other legal matters on your behalf

How to use it?

We provide the legal notice format which can be used by a person to start legal proceedings against the person with whom he has grievances. It is advised to get it drafted by our professional lawyers at legalwiz.in. Legal notices generally advised to be sent through a professional lawyer as the language is very important for such legal notice.

Our Services?

You can choose which document you want us to draft by our experienced lawyers with a free consultation call to understand the significance and get the document customized as per your business requirement.

Let us draft a Service Level Agreement from scratch, personalized and customized as per your needs!

Stamp Duty for Power of Attorney

If a General Power of Attorney is conferred to father, mother, brother, sister, wife, husband, son, daughter, grandson, granddaughter or any near relative, without any consideration, then Stamp Duty of Rs. 500/- is only applicable for registration. In case, General Power of Attorney is conferred to a person other than close relative and/or for consideration, then stamp duty is payable as per the market value of the property or the consideration, whichever is higher.

In addition to the stamp duty, a registration fee of Rs.100 is applicable if the Power of Attorney is conferred without consideration in the name of father, mother, brother, sister, wife, husband, son, daughter, grandson or granddaughter or a near relative. In any other case, registration fee is payable at the rate of Rs.10/- per Rs. 1000/- with a minimum of Rs. 100/- and maximum fee of Rs. 30,000/- on the market value of property or consideration, whichever is higher.

Stamp Duty payable for Special Power of Attorney is Rs. 100/-.

Note: The stamp duty for power of attorney would vary based on the State and powers conferred in the Power of Attorney. Hence, its best to consult a Lawyer while executing a Power of Attorney.

General Power of Attorney vs Special Power of Attorney

In a general Power of Attorney, the executor of Power of Attorney (Principal) authorizes the Power of Attorney holder to perform any nature of activity in the context of his immovable and movable property in his name and on his behalf. In a Special Power of Attorney, the Principal authorizes someone to perform limited activities on his/her behalf or confers limited rights.

What Is the Agent of a Power of Attorney Responsible For?

The agent or attorney-in-fact is a fiduciary. That means they are responsible for managing some or all of another person's affairs. The fiduciary must act responsibly and practically and in a way that is fair to the person whose affairs they are managing. Anyone who violates these duties can face criminal charges or can be held liable in a civil lawsuit.

What Are the Limits of a Power of Attorney?

No power of attorney document is legally binding before it's signed and executed according to the laws of your state. This means that no agent can make decisions on your behalf before the POA document goes into effect. You must also be of sound mind when you appoint an agent. You can view more about the creation of a power of attorney in the infographic below.

Any terms that you feel need clarification can be outlined specifically in your POA document. This is why having the help of an attorney can simplify the process of nominating an agent to have power of attorney.

How Do I Make My Choice of a Power of Attorney Legally Binding?

To make your POA legally binding, sign and execute your document according to the laws of your state. This usually involves signing in front of witnesses or having it notarized. Consider giving a copy to your agent or letting your agent know where they can find a copy if needed.

Attorney-In-Fact vs. Power of Attorney: What's the Difference?

An attorney-in-fact is a person you've assigned to manage your affairs through the power of attorney document. This person is an agent acting on your behalf, also called a fiduciary.

An attorney-in-fact does not need to be someone who can practice law. That said, getting the help of a lawyer to help you draft the POA and navigate estate planning can make the process less stressful for you and your loved ones. While it's not necessary to involve a lawyer, you must choose an agent who is:

  • At least 18 years old
  • Of sound mind

When designating your attorney-in-fact, it's important to find someone whom you know and trust. This person will act on your behalf to make crucial decisions about your well-being, your finances, your assets, or other affairs. Your attorney-in-fact can be anyone you choose, so picking someone who will act in your best interest can bring you added peace of mind.

Types of Power of Attorney and Their Key Differences

Several types of POA exist, and each serves a different purpose. It might be important to you that the same person is responsible for all of your affairs, or you might want the person handling your finances to be different from the person handling your health care decisions. The differences also extend to when you want the POA to take effect. Here are some of the options (and more information on them in the next section):

  • Durable/Non-Durable POA
  • Springing POA
  • General POA
  • Limited POA
  • Specific POAs:
    • Medical
    • Financial
    • Military

Each type of POA has its own benefits, so it's important to understand all of your options before making a decision.

What Is a Durable Power of Attorney?

If you're incapacitated because of an illness or a sudden accident, a durable power of attorney document allows your attorney-in-fact to continue acting in your interest. This is simply a POA that has a durability provision to keep the current power of attorney in effect.

You can specify in your POA document whether you would like your agent to have authority once the document is signed or once a doctor declares you incompetent. You can also specify your preference for which doctor should have that authority to ensure they're a medical professional whose opinion you trust.

  • Key Takeaway: A durable POA remains effective after you're incapacitated, regardless of whether it went into effect before that event.

Non-Durable Power of Attorney

A non-durable POA ceases to be effective the moment you're declared incapacitated.

Durable vs non-durable power of attorney

What Is a Springing Power of Attorney?

A springing POA activates as soon as you're declared mentally incompetent or physically incapacitated.

A springing POA is different from an immediately effective POA, which, as the title suggests, becomes effective as soon as you sign it.

A springing power of attorney kicks in once a doctor declares you unfit or incapacitated.

One major drawback of a springing POA is the clarity around a declaration of physical or mental unfitness. For example, if you're diagnosed with onset dementia and your ability to make sound decisions is thrown into question, it may be difficult to obtain proof that you're medically incompetent.

  • Key Takeaway: If you're declared incapacitated or incompetent, this POA kicks in. It is inactive before that time.

What Is General Power of Attorney?

General power of attorney gives broad powers to your attorney-in-fact. These powers can include:

  • Handling financial and business transactions
  • Buying life insurance
  • Settling claims
  • Operating business interests
  • Making gifts
  • Employing professional help

A general power of attorney gives broad power to your agent to handle many affairs.

General POA is an effective tool if you will be out of the country and need someone to handle certain matters, or when you are physically or mentally incapable of managing your affairs. A general POA is often included in an estate plan to make sure someone can handle financial matters.

  • Key Takeaway: A general power of attorney is an overarching POA that gives attorney-in-fact power relating to financial decisions.

What Is a Limited Power of Attorney?

Also known as a special power of attorney, this POA document limits the agent to a set number of conditions. You can specify exactly what powers an agent may exercise by signing a special power of attorney. You might use this POA if you can't handle certain affairs due to other commitments or health reasons.

A limited power of attorney grants your agent only the specific powers listed in provisions of your POA document.

Selling property (personal and real), managing real estate, collecting debts, and handling business transactions are some of the common matters specified in a special POA document.

  • Key Takeaway: This power of attorney applies only to specific powers listed in the document and is more limited than a general POA.

Other Power of Attorney Types

There are other, more specific types of POA that can expand or restrict an agent's decision-making powers.

The type of POA you need is a personal decision that you may want to bring up when you talk about estate planning with your family. Planning ahead for end-of-life decisions allows you to spend more time focusing on the people and activities that you love.

What Is a Medical Power of Attorney?

A medical power of attorney also called a durable healthcare power of attorney, grants your agent authority to make medical decisions for you. Your agent will have this power if you are unconscious, mentally incompetent, or otherwise unable to make decisions on your own.

While not the same thing as a living will, many states allow you to include your preference about being kept on life support in a medical POA. Some states will allow you to combine parts of the health care POA and living will into an advanced health care directive.

  • Key Takeaway: This durable POA allows an attorney-in-fact to make medical decisions for you, and is sometimes combined with a living will.

What Is a Financial Power of Attorney?

This POA gives a fiduciary the ability to conduct your financial matters when you're not present. This can be a non-durable POA that covers situations where you're unable to be present, such as an extended time spent abroad. It can also be a durable financial POA that covers instances when you're incapacitated or mentally incompetent and therefore can't make sound financial decisions for yourself.

  • Key Takeaway: This POA grants an attorney-in-fact the power to make financial decisions on your behalf when you're incapacitated or otherwise unable to.

What Is a Military Power of Attorney?

Just as with powers of attorney that apply to civilians, military powers of attorney vary in their coverage, and what authority you grant is entirely up to you. Due to the travel often involved in military roles, having a power of attorney in place for a military spouse can be beneficial for many everyday situations, such as accessing your bank account, registering a car, or filing taxes.

The unpredictability of life during deployment can mean sudden changes in your plans and your ability to make decisions on your own behalf, whether it's through unavailability, injury, or incapacitation. Having a power of attorney in place is a good idea for anyone in the military, but for those who are deployed, it can be critical.

  • Key Takeaway: This POA applies to active-duty service members and their families, and has special considerations for military lifestyles.

General Power of Attorney Format

To All to Whom these presents shall come, I <Name of Person Giving Power of Attorney>, Son/Daughter of <Father’s Name>, aged <Age in Years>, residing at <Address>

Whereas I am desirous of appointing some fit and proper person to look after all my immovable properties, business and other affairs and requested <Name of Person Receiving Powers>, Son/Daughter of <Father’s Name>, aged <Age in Years>, residing at <Address> (hereinafter called ‘the Attorney’) to act for me and manage and look after my affairs which the Attorney has consented to do

NOW KNOW YOU ALL AND THESE PRESENTS WITNESS that I, the said and do hereby appoint the said Attorney as my true and lawful Attorney with full power and authority to do and execute all acts, deeds, and things as hereinafter mentioned.

  1. To contract with any person for leasing for such period at such rent subject to such conditions as the attorney shall see fit, all or any of the said premises and any such person, to let into possession thereof and to accept surrenders of leases and for that purpose to make and execute any lease or grant or other lawful deed or instrument whatsoever which shall be necessary or proper in that behalf.
  2. To pay or allow all taxes, rates, assessments, charges. deductions, expenses and all other payments and outgoings whatsoever due and payable or to become due and payable for or on account of my said lands, estates and premises.
  3. To enter into and upon my lands and buildings and structures whatsoever and to view the state and defects for the reparation thereof and forthwith to give proper notices and directions for repairing the same and to let manage and Improve the same to the best advantage and to make or repair drains and roads thereon.
  4. To sell (either by public auction or private treaty) or exchange and convey transfer and assign any of my lands and buildings and other property for such consideration and subject to such covenants as the Attorney may think fit and to give receipts for all or any part of the purchase or other consideration money And the same or any of them with like power, to mortgage charge or encumber and also to deal with my immovable personal property or any part thereof as the Attorney may think fit for the purpose of paying off reducing consolidating, or making substitution for any existing or future mortgage. charge, encumbrance. hypothecation or pledge of the same or any part thereof as the Attorney shall think fit and in general to sanction any scheme for dealing with mortgages, charges hypothecations or pledges of any property or any part thereof as fully and effectually as I myself could have done.
  5. To purchase, take on lease or otherwise acquire such lands, houses, tenements and immovable property generally as the Attorney may think fit or desirable.
  6. To enter into any development agreement with any developer or builder authorising him to develop any of my properties as mentioned above and to do and execute all acts and deeds as may be required to be done or executed.
  7. To continue and or to open new, current and or overdraft accounts in my name with any Banks or Bankers and also to draw cheques and otherwise to operate upon any such accounts.
  8. To engage, employ and dismiss any agents, clerks, servants or other persons in and about the performance of the purposes of these presents as the Attorney shall think fit.
  9. To settle any account or reckoning whatsoever wherein I now am or at any time hereafter shall be in anywise interested or concerned with any person whomsoever and to pay or receive the balance thereof as the case may require.
  10. To defend any suit or legal proceedings taken against me in any court of law and to do all acts and things as are mentioned above.
  11. To accept service of any writ of summons or other legal processes or notice in any suit or legal proceedings and any person to represent in such court civil or criminal, or revenue court or tribunal or before any officer or other Tribunal whatsoever.
  12. To exercise any power and any duty vested in me whether solely or jointly with another or others as executor, administrator, trustee or in any other fiduciary capacity (including powers and trusts to sell or lease land or to receive and give good receipts for money) so far as such power or duty is capable of being validity delegated.
  13. And also to appear before the Registrar or Sub – Registrar of any District or Sub-District appointed or to be appointed under any Act or law for the time being in force or otherwise for the registration of deeds, assurances, contracts or other Instruments and then and there or at any time thereafter to present and register or cause to be registered any deeds, assurances. contracts or other instruments In which 1 am or may be by the Attorney deemed to be Interested and to pay such fees as shall be necessary for the registration.
  14. To enter into, make, sign, seal, execute, deliver, acknowledge, perform all engagements, contracts, agreements, deeds, declarations, bonds, assurances and other documents, papers, writings and things that may be necessary or proper to be entered into, made signed, executed, delivered, acknowledged and performed for any of the purposes of these presents or to or in which I am or may be party or in any way Interested.
  15. In general to do all other acts, deeds. Matters and things whatsoever in or about my estate, property and affairs or concur with persons jointly Interested with myself therein in doing all acts, deeds, matters and things herein either particularly or generally described as amply and effectually to all Intents and purpose as I could do in my own proper person if these presents had not been made.

AND I, the abovenamed do hereby undertake to ratify whatever the Attorney or any substitute or agent appointed by him under the power In that behalf hereinbefore contained may lawfully do or cause to be done in and by virtue of these presents.

IN WITNESS WHEREOF I, the abovenamed have hereunto set my hand this <Day> day of <Date> in the <Month, Year>.

Signed, scaled and delivered in the presence of <Witness Details>

Note: The power of attorney clauses would be modified based on the requirements of the Principal and Attorney.