When you consider the legal documents that you may need as a business owner or individual, you need to make sure that a durable or lasting POA is included in the list. A lasting power of attorney can save your business, estate, and affairs in UAE in the event that you won’t be able to manage them on your own.
What’s a Lasting POA?
In general, a (POA) power of attorney allows a principal in designating another person, the attorney-in-fact or agent, in acting on your behalf. The agent may be given authority in acting on your behalf for all transactions and every situation or just a particular situation. To give an example, it is a common practice for a property or real estate transaction involving a POA to a real estate agent in order to act on the behalf of a buyer or homeowner in signing documents that are related to the transaction.
A POA ends or gets terminated as soon as a person dies, when the document is revoked by a specific person who created it, if the principal becomes incapacitated mentally, or by the end of specific transactions.
Lasting POA is a specific kind of POA that allows the POA in continuing even with the mental incompetence of the principal. Mental incompetence is the legal term that is used in referring to a person being unable in carrying out or making important decisions that are related to his/her personal or business affairs. For instance, dementia can be an acceptable reason for mental incompetence. Lasting powers of attorney may be created for several reasons, may they be business or medical. There is no limit to the number of lasting POAs that can be created, just as long as the documents don’t overlap.
Also Read: Durable Power Of Attorney FAQs
When Does a Lasting POA Take into Effect?
There are two kinds of lasting POAs. One type is referred to as a springing lasting POA. For this kind of lasting POA, it springs into action or becomes effective when a person or principal becomes incapacitated.
The other kind is the regular lasting POA which takes into effect instantly or when the legal document is signed and notarized.
Take note: a POA notarization in UAE is required. Of course, an agent does have power or authority even when principal becomes incompetent.
What Should I Know About Lasting POA for Business Owners?
As a business owner in UAE, you may want to have separate lasting POAs that are designated to people that will be able to handle the activities of the business when you’re not able to do so. The creation of a limited lasting POA for your business’ legal and financial matters can just save your business in UAE when you become incapacitated.
For instance, if you have sole ownership of an LLC in Dubai, a lasting POA will provide a specific agent that you have chosen yourself the ability in handling the business’ daily operations and activities in your stead.
Remember that you have to exclude business affairs with other lasting POAs that you create.
What Should be Included in a Lasting POA?
Here are some sections that have to be in a lasting POA:
- List all the specific descriptions of the parties that are involved with the power of attorney. There should be complete information on the agent and the principal so there is no confusion on who the people are. Include the relationship that the principal has with the agent that was chosen.
- There should be limits that are described in the POA. The limits should be with respect to time or the kind of POA, whichever applies. This is the one play where a principal is able to be specific on whether a POA is for every single matter that is concerning the principal, for medical matters, or for business matters only. A POA should also be the place in which the principal states that the POA doesn’t include specifically.
- There should be a statement saying that if your situation mentally changes, or when you become competent back again e.g. following recovery from major injury, then the POA expires.
- Include also specific instructions that are for the agent. You may want to include details on who should be talked to or consulted to for medical and business matters. The people that have to be consulted for have to be identified. Make sure that you are careful with a medical lasting POA as it shouldn’t be contradictory to your living will.
- A power of attorney has to be signed in front of witnesses.