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Whether you plan to buy your first real estate property in 2025 or already have, you must know that Will plays a significant role in this industry. It is important for a healthy distribution of wealth and ensures that the right person gets what they deserve. Worldwide power of attorney (POA) and family trust are quite popular for accurate succession planning. It helps the owner to ensure dispute-free distribution among the heirs. However, it is still not very popular in India. If you are planning to make a will or future distribution, we suggest considering POA once. For this, in today’s blog, we will delve into the deeper factors of Understanding Power of Attorney which will help you to make an informed decision.

Let’s begin!

Understanding Power Of Attorney (POA)?

 Understanding Power of Attorney (POA) is a legal document that grants someone the authority to act on behalf of another person, known as the principal, in specific situations or for specific reasons.

It is a crucial document in financial and property matters. It contributes to the Will of writing, and succession planning, too. By appointing an agent through a power of attorney, individuals can ensure their wishes are carried out effectively, and their affairs are managed following their intentions.

Even if you are unable to communicate or are somehow ill, if you incorporate a POA, be assured that your succession will be according to your wish.

Take note you can’t appoint a POA alone, you need the person in front of you (to whom you are granting the POA, and a third party as the proof. This third party could be a financial institution, medical professional, or any other entity involved in the decision-making process. Their role is to verify the activation of the power of attorney and ensure that the agent’s authority is recognized.

How Many Types of Power of Attorney Are There?

Understanding Power of Attorney helps you to appoint a person on behalf of you to distribute your property and carry out your wish. Now, everyone has their unique demand and different property types. Hence, their requirement is different. To fulfill their demand, there are a variety of POAs available. Here are the types-

1. General Power of Attorney

General power of attorney grants the power to manage commercial, legal, and financial issues on your behalf. However, it doesn’t allow the power of singing a will or anything related to it.

2. Special Power of Attorney

Special power of attorney or limited power of attorney grants the agent to perform specific tasks or transactions on behalf of the principal. It holds more power than the general one because a special power of attorney can be particularly relevant for addressing specific legal or financial tasks or managing certain aspects of estate planning.

3. Durable Power of Attorney

A durable power of attorney is specifically designed for aged people or those who are severely ill. It remains in effect even if the principal becomes incapacitated or unable to make decisions. It safeguards against potential future incapacity and ensures someone trusted by the principal has the legal authority to handle financial, legal, and personal matters.

4. Medical Power of Attorney

A medical power of attorney or, healthcare power of attorney or healthcare proxy is also designed for severely ill people. It grants the agent power to make medical decisions on behalf of the principal when they are unable to do so. In the context of Will writing and succession services, a medical power of attorney holds particular significance in terms of healthcare decision-making.

What are the Benefits of Understanding Power Of Attorney or POA?

If you are still not clear about the advantages of power of attorney, let us inform you that it is like a wish fulfillment tool. It helps you to execute your wishes even when you are not active. POA saves your loved one from many imposters and ensures that the wealth distribution is correct.

Nonetheless, it is just the tip of the iceberg, it has a queue of benefits, and some of them are-

1. Appoint a Decision Maker on Behalf of You

The POA ensures that a trusted person will make decisions on behalf of you or execute your decisions. Without a power of attorney, a guardianship or conservatorship may need to be established and can be very expensive.

2. Prevent Any Legal Dispute in the Wealth Distribution

A power of attorney acts as a protective measure, guarding against potential disputes or conflicts that may arise during the estate administration process. It also prevents any delay in wealth distribution. Here, it is crucial to mention that the POA must be clear about the directions, and made with proper planning.

3. Protect the Property from Fraud

An effective and proper POA covers different aspects, such as real estate transactions, financial investments, and business interests. The legal document appoints a responsible person who does all the needful work and safeguards the property.

4. Protect Your Loved One

POA protects your loved one from various hazards in your absence. Are you surprised how? It abolishes the necessity of performing basic tasks, like writing a check or arranging for home health services.

5. Helps You to Save Money

If you want to protect and ensure a safer future for your property, it is important to go for any legal procedure. Take note that those legal procedures are not cheap. POA is the most cost-effective way of protecting the property and paving the way for better future management.

Hopefully, now you have a clear picture of the benefits of POA and you might think about how to get this one. For that, you need to follow below-mentioned steps-

# Step 1: Start the process by selecting a reliable person as the agent. Inform the person about your plans and ensure that the individual is capable of taking the responsibility.

#Step 2: Choose a POA that perfectly goes with your requirements. Don’t go long, prepare it with a plan and try to be specific about your direction.

#Step 3: Purchase the appropriate value of non-judicial stamp paper required for the POA.

#Step 4: Select witnesses, and it is advised to get a lawyer for yourself. It will help you to avoid any mistakes. Sign the document in the presence of witnesses and an attorney.

#Step 5: Visit the Sub-Register office and go through the verification process. It will ensure the 100% legality of the papers.

You should end the proceeding by verifying that the registered POA is a true copy with the Sub-Registrar’s stamp so that your family does not face any issues in the future. For more expert advice on this, you can consult with a professional.

If you want to be an agent of anyone- the process will be the opposite and your principal needs to do these all.

Wrapping Up: Understanding Power of Attorney

Understanding Power of Attorney is an armor for your property. It protects from various future threats and any potential fraud. 

If you are looking for a property in the New Town, Rajarhat area; you can connect with us. We have several projects in this area designed with the highest comforts and for all kinds of budgets.

Contact us to know more.