The importance of drafting a power of attorney

For many people out there, it is just about impossible to manage the financial affairs of their loved ones. A number of factors play a significant role in making things hard for them in terms of making health care decisions unless the court is involved. One of the best means of dealing with these issues is that of drafting a comprehensive power of attorney (POA). What is most unfortunate is the fact that countless people, including accountants, financial advisors and even a few attorneys do not have much understanding about the importance of having power of attorney made. People just go on assume that just because they hold a joint owner or assets or have gotten married, it is now possible for them to transfer or sell their assets.

Detailed information

For those who don’t know, a power of attorney in UAE format is a legal document in which a person (better known as the principal) gives the authority to another person (the agent) to take actions on his behalf. You can choose to have a durable power of attorney made in which you will give the authority to your agent to make decisions for all your financial matters. On the other hand, there are healthcare powers of attorney that will allow the agent to make decisions related to your healthcare needs.

Now, there are multiple kinds of powers of attorney that can be made. To begin with, there are General Durable POAs in which your agent will be given the authority to make all of your financial decisions. On the other hand, if you wish to limit the power granted to your agent and want to specify the decisions that the agent will be allowed to make for you, then you should opt for a Limited Durable Power of Attorney. In case you are interested in transferring the power to make decisions for you to your agent right away, then a Durable POA is what you need. However, if you wish to limit their power so it can be exercised only when you get into an incompetent position, then you should get a Springing Power of Attorney made.

If truth be told, it is extremely important for you to acquire as much information as possible before getting a power of attorney drafted. Consider the different options that are available to you and then make a decision accordingly. Click here now for more information in this regard.