Purpose of POA
1. Representation: A Power of attorney is a legal document in which an individual can specify who has the authority to make decisions on his behalf if a person is unable to make decisions himself or in a situation in which he cannot represent himself as he might not be physically present or he is of the opinion that he is not the suitable person to represent.
2. Appointment of Agent: The authority or agent appointed to decide on the principal’s behalf is responsible and is expected to make and take decisions for the principal’s benefit, under all circumstances his priority is agent’s benefit maximisation. The POA has multiple purposes as there are different types of POAs that serve different specified purposes.
3. Protects Interests: If the person becomes incapacitated and the person has endured a POA in place, in that case, the agent or attorney has the authority to make decisions on his behalf to protect the interest of the person.
4. Avoids Guardianship: In case the person doesn’t have a POA in place, then the court may appoint an administrator or guardian to make decisions for the person. This can be a long and expensive process, and the personal interest of the individual might be sidelined
5. Sense of Relief: When the individual has signed a power of attorney, the person gets liberty and relief that on case of any uncertainty, the matters would be handled with care by the agent appointed by him. POA ensures that the agent would use the required expertise in the decisions to be taken.