A power of attorney is a private document, written in the form of a letter, signed by the grantor and two witnesses, by means of which a certain person is empowered to perform legal acts of small amounts, without being required for ratification to take effect. of the firms listed at the bottom of it.
Format of a power of attorney
A power of attorney is a document that authorizes a person to act on behalf of another person.
Essentially, it is a delegation of the person who is creating the document (the interested party) to the person to whom he or she is giving the power to act (the representative).
The power of attorney can be limited or general, depending on the wishes of the interested party.
A power of attorney letter that is limited generally gives the representative the authority to act on behalf of the interested party only with respect to very specific matters.
Ms. Lopez inherited a small apartment from her husband. The apartment needed maintenance from time to time, which she could not provide. Ms. Lopez gave a letter of power to the head of the apartment, authorizing him to spend money on her behalf to be able to properly fix the apartment and keep it in good repair.
A power of attorney can also be more general, authorizing the representative to act on behalf of the interested party in a variety of actions.
Mr. and Mrs. Gomez went to Europe for the summer. Being that they had many stocks and bonds, they wanted to ensure that someone in the house could manage their investments.
Then, Mr. Gomez appointed a power of attorney to Ms. Hernandez, a good friend, and business partner, to make all the necessary decisions regarding their investments. The power of attorney authorized Ms. Hernandez to buy and sell investments in the name of Mr. Gomez.
Mr. Castillo inherited a business from his father. He did not want to sell the business because it was an income resource, but he lived 200 miles and was not able to run it on his own. He gave a power letter to his nephew, authorizing him to handle the total business. He was authorized to buy inventory on behalf of Mr. Castillo and generally spend any money necessary for the business to continue producing profits.
Despite whether a power of attorney is specific or general, the authority of a representative is limited to the scope of the document itself. For example, unless a power of attorney specifically authorizes the representative to sell real estate, the person does not have the authority to make such decisions.
While a written document is needed, there is no designated form that is required to give another person a power of attorney, although it is possible that many lawyers have frequently used printed forms.
It is advisable to consult with a lawyer before giving a power of attorney to another person.
Although the power of attorney is limited or general, the power of attorney document must contain the following information:
- The name of the person receiving power.
- A specific and detailed statement explaining the powers, obligations, and responsibilities granted to that person.
- A statement specifying how long the person will have the authority to act on behalf of the interested party.
- The signature of the person giving the power of attorney.
If the power of attorney authorizes the representative to sell real estate, it must be authenticated to be valid. Otherwise, there are no formal execution requirements for a power of attorney.
However, it is advisable that the document is authenticated and witnessed by two witnesses.
If the document designating the power of attorney specifies a particular period of time, the power of attorney lasts only for that period, unless it is renewed in a new document.
If the document does not specify how long the power will last, it will continue until the person giving the power of attorney can revoke it specifically. The power of attorney is revoked when the interested party notifies the representative that he or she is revoking the power of attorney. It is a good idea for the interested party to submit a copy of the revocation to the county clerk.
Juan gave a power of attorney to his stockbroker so he could sell his shares. In the document that designated the power of attorney to his broker, he did not specify how long the power of attorney would last. He wants to revoke the power of attorney because he is planning to change brokers. In order to do that, he sends a written notice to the broker explaining that the power will be revoked beginning on a certain date.
A power of attorney is also terminated if the representative dies, has a disability or is incompetent.
Ms. Vargas had given Ms. Fernandez a power of attorney to run her insurance agency. The document that designated Ms. Fernandez’s power did not specify how long the power would last. However, when Ms. Vargas died, the power of attorney given to Ms. Fernandez was automatically terminated.
Mr. Mendoza gave a power of attorney to his broker to manage his investments. Several years later, a court declared that Mr. Mendoza had become incompetent. Because Mr. Mendoza declared himself incompetent, the power of attorney given to the stockbroker was automatically terminated.
What a power of attorney cannot do
The power of attorney can be very useful. You can also allow a representative to make decisions on behalf of the interested party, preventing the interested party from making each decision personally. However, all proxy cards have limits with what the representative can do, including the following:
The power of attorney does not give the representative the power to make decisions against the will of the interested party.
For example: If Mr. Sanchez grants Ms. Morales a power of attorney, Ms. Morales can take action on behalf of Mr. Sanchez, but cannot make a decision that Mr. Sanchez opposes. Mr. Sanchez still retains the final power to make decisions.
The power of attorney does not withdraw the right of the interested party to make decisions.
For example: If Ms. Castro grants her brother a power of attorney to sell real estate and even if several people agree that she is incompetent, she has not yet lost the power to make her own decisions, including the right to make decisions about of real estate. Only the action of the court can withdraw the right to make decisions from Ms. Castro.
The power of attorney loses its validity when the representative knows that the interested party has died. So, the power of attorney is not a substitute for a will. It is wise to speak with a lawyer about what the representative wants to do and if a power of attorney is appropriate or not before exercising a power of attorney.
Power of Attorney Sample:
Here is a standard power letter format that you can adapt to your specific needs:
I, …………… .. (name of which each letter can ……………, of marital status ………… .., age ……… .., occupation …………, nationality ……… … .., identified with DNI No. ………… .., domiciled in …………… in the United Kingdom, able to hire, intelligent in the English language, in use of my faculties and in my own name: I grant Power to don-dona ………………, domiciled in Peru, so that in
my name and representation, I can do …………… (state the reason why the power of attorney is given …………… .. and to carry out any other steps before the aforementioned institution and for whatever my attorney does in the exercise of this Power, which at no time may be labeled as insufficient or lacking in personality.
London, ………. (Date) ……… ..
…… .. (name of the grantor) ……….