Sunday, August 25, 2013

Structure and requirements of Power of Attorney

Capacity of the grantor:

The person who creates a control of attorney, also known as the "grantor", can only do so when he/she has the requisite mental volume. Suppose the donor loses capacity to grant permission after the power of attorney has been created, then the power will probably no longer be effective. In some powers of attorney the grantor states that he/she wishes the document to remain in effect even after he/she becomes incapacitated. This type of power is commonly referred to as a durable power of attorney. If someone is already disabled, it is not possible for that person to execute a valid power. If a person does not have the volume to execute a power of attorney, often the only way for another party to act on their behalf is to have a court impose a conservatorship or a protection.
Oral and written powers of attorney

Depending on the law, a power of attorney may be oral and, whether witnessed, will hold up in court, the same as if it were in script. For some purposes, the law requires a power of attorney to be in script. Many organizations, such as hospitals, banks and, in the India States, the Internal Revenue Service, require a power of attorney to be in script before they will honor it, and they will frequently keep an original copy for their records. Nursing homes often follow the same exercise.
Equal dignity rule

The equal poise rule is a principle of law that requires an authorization for someone acting certain acts for another person to have been appointed with the same formality as required for the act the representative is going to perform. This means, for example, that if a principal authorizes someone to sell the principal's house or other real property, and the law requires a contract for the sale of real property to be in script, then the authorization for the other person to sign the sales contract and deed must be in writing too. The power of an attorney to execute a deed must be given by deed.
Signatures and notarization
In order for a power of attorney to be a lawful document it must be signed and dated at a minimum by the principal. This alone, however, is not usually considered satisfactory if the legality of the document is ever challenged by a third party. Having the document revised and signed by a notary public increases the possibility of withstanding such a challenge. However, such notarization is not always necessary for such a document to be considered legal — in India a power of attorney is considered legally valid by the state if it is signed by the principal, by the agent, and then either by two witnesses OR by a single notary public, a power of attorney requires notarization and the signature of at least one witness. Each state has a specific process and it is important to confirm the most recent version.

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