Power of attorney is a term used to define the delegation of one’s responsibilities to someone else. That person can be a friend, family member, a business associate, an employ or a professional such as a lawyer or accountant. Powers granted are to be specified on the Power of Attorney form.
Circumstances requiring Power of Attorney:
- When authorizing your family member, friend or professional to handle your legal and financial affairs
- When authorizing business associate, subordinate or employee to handle your financial and managerial affairs in your absence
- When authorizing your family member or friend to handle your medical or personal affairs in times when you are seriously ill and are unable to make decisions by yourself.
- When authorizing someone to perform certain tasks at a specified time, in your place.
Types of Power of Attorney
Generally, Power of Attorneys can be classified into
General Power of Attorney:
It grants the individual a wide and unlimited range of authority over your financial, legal or personal matters.
Special Power of Attorney:
It allows you to define the individual powers that you are granting the agent, within a narrow scope.
This format can be used, for example, if you want your spouse to manage your personal finance or property, or your business associate to take care of your business affairs.
The first step to the formation of Power of Attorney:
The first step in appointing the Power of Attorney is choosing an agent or attorney-in-fact, the person who is going to act on your behalf. It is preferred that the person is from your inner circle of life, someone who you trust completely. Another factor to keep under consideration is that the person should be at least twenty-one years old. In order to prevent any misunderstanding or counter decision, it is advised to discuss the terms, roles, responsibilities, authorities, duration, and limitations with the agent beforehand.
Notarizing a Power of Attorney in the UAE:
In UAE, Power of Attorney is signed in the presence of the principle, i.e.; the person granting the POA. The POA is signed in front of Notary Public who then reviews it and stamps it declaring it a legal document. But this is done after the principal pays the applicable attestation fees. The language of the document should be Arabic in the original. And if it is in any other language, the Arabic translation should be attached alongside. In case, POA has been issued outside UAE, it has to be notarized, translated into English or Arabic and legalized by the UAE Embassy and Department of Foreign Affairs in UAE or from the Embassy or Consulate in UAE where it was issued from. After this, it has to be attested by the Department of Foreign Affairs in the UAE. Following documents are required, for a standard personal POA, at the time of notarization of POA in front of a Notary Public in UAE;
- Original passport of the principal along with 1 copy
- Three copies of the POA to be notarized
- Original Emirates ID of the principal along with 1 copy (applicable for UAE residents)
It is mandatory to present the ownership documents of the property if the POA is related to a specific real estate or for on behalf of a company.