The basic idea of power of attorney is to appoint someone in place of the executor to make decisions on their behalf or in absence. As expected, it is a very complicated process and can stir up a lot of confusion for anyone which can lead to misconceptions which is why we would highly recommend you to go through the following misconceptions and clear them out:
- Legally incompetent person can still sign power of attorney
The whole idea of appointing and drafting a power of attorney is to be able to make it in use when the appointer is incapacitated to carry out their tasks and procedures. This is the reason that power of attorney is signed when the appointer themselves are in a legally competent condition. If someone would ask a lawyer to appoint them as the power of attorney because their dad’s condition is not stable, unfortunately they won’t be able to because these proceedings are supposed to take place before the condition becomes unstable.
- Online template can be used to draft power of attorney
Yes there are many online templates available and they are surely helpful in understanding the legal proceedings and how it should be drafted but to use that same template for the official work is highly ill recommended by the lawyers. There are so many loop holes and things which you can be missing when it comes to drafting legal documents as you wouldn’t know and understand the complete laws and proceedings to drafting such documents and it can become extremely difficult for you to later carry out the POA.
- POA grants them the power to do what they please
This is one of the most obvious misconceptions that most people believe to be true and this is why when they hesitate in appointing a power of attorney Dubai. This is not the case at all because legally it says that the power of attorney only has the right to carry out financial decisions for offshore company formation in Dubai which are best in the interest of principal and if the executor fails to do so, or their decision does not seem to be fitting then they do not have the right to execute it. This limits the agent and this is also why you should appoint someone who you have complete trust and faith in their unbiased opinions.