A Power of Attorney (PoA) lets one person (the principal) authorise another (the agent) to act on their behalf – signing documents, managing property, operating bank accounts, or handling specific transactions.
There are different types:
- General PoA: broad powers over many acts,
- Special/Specific PoA: limited to particular tasks (like selling one flat),
- Sometimes, “durable” PoAs that continue even if the principal becomes mentally incapacitated (depending on local law).
PoAs are extremely useful when someone is travelling, elderly, or simply unable to handle all paperwork personally. But they carry serious risk: a dishonest agent can misuse powers to sell property cheaply, transfer funds, or enter bad contracts.
That’s why it’s important to:
- Choose agents carefully,
- Limit powers to what is necessary,
- Mention clear conditions and time limits,
- Register PoA where law requires, especially for property transactions,
- Cancel it formally when it’s no longer needed, and inform relevant parties.
Third parties dealing with a PoA holder should always inspect the document and verify that it authorises the particular act being done.
