A Financial Power of Attorney is a legal document that enables an individual to nominate one or more persons (attorneys) to act on their behalf for managing financial matters. In India, the Financial Power of Attorney or Durable Power of Attorney (Financial) is a valuable tool for handling financial affairs, especially when the authorizing or principal person cannot. Here's everything you need to know about the Financial Power of Attorney.
A Release of Financial Power of Attorney is a document that terminates or discontinues the powers granted to an attorney under a Financial Power of Attorney. This document helps revoke or cancel the powers provided to the Attorney, and the legal right of the property or any activity for which POA was initiated seized to exist.
A Financial Power of Attorney is essential to ensure the continuity of managing an individual's financial affairs when they are unable to do so themselves. It empowers a trusted individual to take care of various financial aspects, including managing bank accounts, investments, paying bills, filing taxes, and more. It allows the principal to have complete control over who will manage their financial matters when they are no longer able to do so.
A Financial Power of Attorney provides a range of benefits, including:
Ensures the continuity of financial management in case of illness or incapacity.
Allows a trusted person to take care of the principal's financial affairs, reducing the stress of family members.
Helps prevent disputes between family members regarding financial matters.
Provides control over who can manage the principal's finances.
A Financial Power of Attorney is required when an individual is unable to manage their financial affairs due to illness, incapacity, or absence. It is recommended for older adults, individuals with disabilities, or individuals with chronic illnesses.
The principal can terminate or revoke the Financial Power of Attorney by executing a Release of Financial Power of Attorney. The document should be printed on non-judicial stamp paper and must be signed by both parties. The value of the stamp paper will depend on the state provisions. If executed outside India, the document must be authenticated by the notary public or Indian consulate.
Currently, the Financial Power of Attorney cannot be executed with an Aadhaar signature. The document must be signed by both parties on non-judicial stamp paper.
To make a Financial Power of Attorney legally binding in India, the document must be printed on non-judicial stamp paper and signed by both parties. It is subject to the general principles of contract laws and adheres to the provisions of the Indian Contract Act, 1872, and the Power of Attorney Act, 1882. It is also recommended to consult a legal professional to ensure the document meets all legal requirements.
In conclusion, a Financial Power of Attorney is an essential document for individuals who want to ensure the continuity of managing their financial affairs when they are unable to do so themselves. It provides a range of benefits, including reducing stress for family members, preventing disputes, and allowing the principal to have control over who will manage their finances. It is important to follow the legal requirements to make the document legally binding and consult a legal professional to ensure all legal requirements are met.
