What is the Power of Attorney and its types?

Power of Attorney
Real Estate » What is the Power of Attorney and its types?

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We, humans, have the tendency to be prepared for outcomes of the future, whether it be keeping an umbrella for a possible rainy day or granting another individual to act as your spokesperson in the event of your incapacitation or even death. A power of attorney is a doorway to the convenience of having a trustworthy person to represent your case and take care of your assets, properties, businesses, and many more things in life or death. Before you learn what a power of attorney is, Here are some of the reasons why you would need a power of attorney:

  • You’re a senior or otherwise unable to make the necessary decisions.
  • You lack mental capacity and are unable to take the necessary actions.
  • Because you’re a minor, you can’t make the necessary judgments.
  • You are unable to make the decisions you need to because of a medical condition.
  • You are in a position to make decisions that call for legal knowledge and expertise.

What Is The Power Of Attorney?

A power of attorney is an agreement that allows a person to name someone else to make decisions on their behalf while they are incapacitated. It is a legal document that gives you the ability to make decisions, manage assets, and conduct business on behalf of someone else. A power of attorney is similar to a will in that it creates a legal document that manages an individual’s assets and transfers control of them to an individual. However, unlike a will, a power of attorney is limited and cannot cover certain decisions and situations. It is often used in the case when the principal is unable to be present at a business meeting or a financial transaction.

The person who is the subject of the power of attorney is called the principal, grantor, or donor (of power). The person who is named in the power of attorney as the decision maker is called the agent, attorney, or attorney-in-fact.

An attorney-in-fact is frequently confused with an attorney-at-law, who is a qualified solicitor or lawyer who represents clients in a certain jurisdiction.

The power of attorney act by the central government of India came into act in May, 1882.

Limitations Of a Grantor/Principal:

The grantor’s mental ability is a fundamental prerequisite for the power of attorney to be lawful and valid. They are unable to use a legitimate power if they are not determined to be mentally capable.

The only method for a person who lacks mental capacity to use their power of attorney is if their guardian or protector successfully petitions the court for conservatorship or guardianship.

The power of attorney will not take effect if the grantor loses their mental capacity after creating it unless they specifically said they wanted it to remain effective after their incapacitation. A durable power of attorney is the name for this type of document.

Limitations Of an Agent:

If a company or institution requires certain actions to be performed only by or in the presence of the principal, for instance, if a bank requires the principal to be present for a certain procedure for identification (like in a bank), the agent cannot represent that principal even though they have been given permission to act on their behalf.

Types of Power of Attorney in India (POA):

In a broad sense, there are two types of Power of Attorney in India:

1) General POA: A general power of attorney authorizes the agent to handle a situation as a whole.

2) Specific POA: A specific POA is used when the attorney-in-fact is authorized by the POA to handle a specific aspect of a subject matter. When a specific POA is in place, the attorney can only exercise the authority that the principal has given him.

Types Of Power Of Attorney Explained In Detail:


A durable power of attorney takes effect as soon as it is signed. If you become incapacitated, your agent will carry on on your behalf. A revocation form can be used to revoke a durable power of attorney.

A durable power of attorney can make sure that your money is managed and help you prepare for medical crises and declines in mental capacity. Having these documents in place makes it easier for family members to make difficult medical decisions since confusion and uncertainty are reduced.

2.Health Care Power Of Attorney (hcpoa)

A frequent name for this is an advance directive. A durable health care power of attorney (HCPOA) document enables the agent to make choices regarding the principal’s health on the latter’s behalf. It is also known as a health care proxy, and it appoints the agent to make decisions on behalf of the principal when the latter is unable to do so. It covers choices for procedures and medications, end-of-life care, healthcare policies, consent to or denial of medical care, life-sustaining therapies, hiring or firing of medical staff, and a host of other issues.

3. General Power Of Attorney

A general power of attorney allows you to choose someone to manage your finances, business, real estate, legal affairs, buying and managing life insurance, etc. When you require someone to perform specific tasks while you are away from home or when you are unable to manage your affairs due to illness or incapacity, a general POA is a useful document. It’s important to carefully consider this because it gives someone a lot of control, especially your finances.

4. Special Or Limited Power Of Attorney

With a restricted power of attorney, someone can only act on someone else’s behalf in extremely limited circumstances. For instance, if you want someone else to cash your checks for you, you might require a limited power of attorney. The agent won’t be able to delegate other financial decisions to the principal.

5. Springing Power Of Attorney

Finally, this kind of power of attorney only takes effect when the principal is unable or incapable of acting on his or her behalf. For instance, when military people travel abroad, this kind of power of attorney may become effective. If they become incapable of making decisions, someone else can do so.

6. Bottom Line

Other powers of attorney examples might also be appropriate in some circumstances. To find out more about the various kinds of powers of attorney, get in touch with a legal expert.

Lex Solutions is one of the best boutique law firms based in Chandigarh, India, they have a wide range of legal capabilities across jurisdictions to help you with property disputes and other criminal offenses.