Power of Attorney is an important legal document that has become a necessity these days. Individuals use it to give authority to someone to make decisions and act on their behalf. Some common reasons for using a power of attorney include being out of the country, being hospitalised, or being unable to make decisions due to any reason. In these cases, it is usually preferred that a trustworthy individual is made the attorney so that they can take care of important business decisions and manage property and assets.
Despite the importance of the document, there are various misconceptions about the power of attorney. These misconceptions create misunderstandings in the minds of people which eventually leads to legal issues. Furthermore, the misconceptions keep people from authorising an attorney even in cases where it is highly recommended to use an attorney.
One of the most common misconceptions regarding the power of attorney is the fear of losing control. Individuals usually believe that if they authorise someone to manage their assets, the attorney can do whatever they want without any checks and balances. However, attorneys cannot entirely do whatever they want. On the contrary, attorneys have limited authority in making decisions and their actions are controlled by multiple checks and balances. Additionally, there are a lot of rules and regulations that regulate the use of the power of attorney, which makes sure that an attorney cannot misuse their power. These regulations prevent an attorney from acting against the conditions stipulated in the power of attorney.
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To make sure that an attorney does not have the option to exploit the situation, the power of attorney must be drafted in such a way that it does not give general authority to the attorney. Rather, it is essential that the document clearly states what the attorney can and cannot do along with the conditions in which they are required to act.
Another misconception about the power of attorney is the timing of use of the document. It is usually believed that the power of attorney has to be used as soon as it is made and cannot be used afterwards. The timings of use completely depend on the type of the power of attorney and the conditions mentioned in the document.
Another misconception about the power of attorney is the number of attorneys that can be assigned. It is usually believed that only one attorney can be assigned for a specific purpose. However, it is possible to authorise multiple attorneys, known as joint attorneys. While authorising multiple attorneys, all the conditions surrounding the situation for which the attorneys are authorised must be clearly defined to avoid any issues or problems.
It is important to realise that the power of attorney is a very important legal document and has to be made with great care to ensure that the attorney does not abuse their power and act in the interests of the individual who has given them the authority.