GNcareers, from Gulf News

The power that lies in a POA

Power of AttorneyImage Credit: Supplied

The power of attorney (POA) is, as the name implies, a powerful legal document. Signed by two parties, the principal and the attorney, it is a legally recognized contract. It is offered by the principal to a person of trust for the latter to perform duties of legal and/or financial nature on his behalf.

There are several reasons why a principal may appoint another to carry out tasks on his behalf. The principal may not be physically present or may be constricted by time limits and/or other priorities. In case of mental incapacitation, a person of means may find that it provides peace of mind to grant the POA to a trusted aide if such an event occurs.

The wordings, limitations, and the rights and responsibilities of both parties are as individual as the people bound together by it. One type of POA is called the springing POA where the power of attorney comes into effect (springs) at the time of the occurrence of an event outlined in the document. Another type is restricted to a certain activity or time frame. For example, the principal may grant the attorney the right to only perform real estate transactions on his behalf or grant the attorney power during a period of illness or mental incapacitation.

For a POA signed outside the UAE to be legally recognized here, it must be notarized by the country’s embassy in the UAE then translated into Arabic and legalized by the Ministry of Foreign Affairs.

Handy Hints
• POAs differ depending on a person’s situation
• It needs to be notarized to be recognized in UAE
• There are many reasons why one draws up a POA

Source: Bushra Hameduddin, Special to Classifieds
The writer is a freelancer