email
phone
whatsapp
whatsapp
Power of Attorney

The Value of Lasting Power of Attorney in UAE

A lasting power of attorney in UAE is a great planning device. It’s a particularly helpful tool for those who are concerned regarding incapacitating mental or physical conditions. 

In this article, we will highlight every aspect that you should know about lasting power of attorney in UAE. Take note: legal counseling is still recommended for those who are interested with power of attorney drafting in UAE and the document’s notarization. 

What is Power of Attorney?

A power of attorney (POA) is a kind of legal document that gives another individual, the agent, the legal capacity in acting on behalf of the grantor or principal, person assigning authority. The authority may be limited to one asset or transaction. It may also be for a specific period of time. The document may be general, conveying broad authority in acting on the behalf of the grantor/principal in the power of attorney. 

Also Read: Liability And Authority Concerns Of A Power Of Attorney Holder

How Does a Lasting Power of Attorney Differ from a General POA?

A regular or general POA is valid when the person assigning the authority has the capacity in understanding its meaning and significance. With a lasting power of attorney, there are two different types. Either of which can make sure it is valid even when the person assigning authority has become incapacitated. 

  • Effective upon incapacity – with this kind of lasting power of attorney, it only becomes effective when the person granting power(s) loses capacity
  • Effective immediately – with this type, it is effective when the document is signed. It also remains effective when the person assigning authority becomes incapacitated fully or partially

What Authority May be Given with a Lasting Power of Attorney in UAE?

The power in handling the assets of an individual can be conveyed with the document. Of course, it is necessary to use the appropriate language in the legal document. The power of attorney an include the power in selling assets, investing, entering into agreements, recovering or collecting assets, making gifts, and dealing with any kind of insurance. An agent, through a lasting power of attorney, may also sell a business, operate a business, and handle trust and taxation issues of the principal. 

Alternatively, a power of attorney may be targeted to select areas of authority as well as eradicate others. 

Should a Lasting Power of Attorney be Used for Medical-Related Decisions?

No, there’s a special kind of document which should be prepared by the principal or grantor separately. The document will be referred to as an advanced healthcare or health-related directive. If you want more information on the matter, we suggest you speak with a power of attorney expert in UAE. 

What is the Advantage I can Enjoy by Having a Lasting Power of Attorney in UAE?

In many instances, lasting powers of attorney can help avoid the requirement of having an estate conservatorship. This kind of conservatorship can involve a court hearing wherein a person referred to as the ‘conservatee,’ has been proven to be incapable of handling his or her own affairs and a ‘conservator’ is appointed in handling his or her affairs. The process of assigning a conservator can be very costly and ongoing supervision by the court is also required. 

With a lasting power of attorney that has been drafted properly by experts and notarized by a public notary in UAE, it can already satisfy the requirement of having surrogate management. This is because there is already a person that has been given authority while the principal still has capacity. A power of attorney is a tool that is simple yet already saves a lot of resources of the grantor or principal. 

A lasting POA in UAE also enables a person in choosing the entity or individual that will act on his or her behalf. Although a person can choose the person that will be the conservator, courts have the final say regarding the appointment of a conservator with the conservatorship proceedings. 

However, conservatorship can be great as they are protection from the review and supervision of the court. That can be very helpful when there are issues regarding the best interests that are to be carried out for another individual. Conservatorship approach may also be great if there has been no agent that was named as the attorney or agent and the person requiring a power of attorney already lost capacity in signing a legal document. Another benefit of a lasting power of attorney is the fact that the principal still has control over his or her affairs. That can be very important to the elderly who has lost capacity and is aware of the loss. 

If you want to know more about lasting power of attorney in UAE and the POA notarization process, contact us here in Notary Public Dubai!