Why Do I Need a Power of Attorney in UAE?
A power of attorney (POA) is a legal document that allows you (the principal) to appoint another person (known as the agent or attorney-in-fact) to act on your behalf in all or specific matters. This delegation of authority empowers the designated individual to make decisions and take actions on your behalf, ensuring your interests are represented and attended to.
In certain situations, it may be necessary for you to grant a Power of Attorney (POA) to another individual. This person can be a trusted family friend, a knowledgeable lawyer, or an authorized firm. For instance, individuals residing outside the UAE who possess assets within the country, such as property, vehicles, or shares, might choose to create a POA. This ensures that someone can act on their behalf should they be unavailable to carry out any transactions related to these assets.
In certain situations, individuals may need help managing real estate or rental properties in the UAE. This could be due to time limitations, lack of physical presence, or health conditions. In such cases, a power of attorney can empower an agent to act on behalf of the principal, ensuring the properties are well-maintained until the principal is able to handle them personally.
While it is commonly assumed that establishing a power of attorney (POA) is primarily associated with older individuals entering retirement, this notion is no longer restricted to age in the 21st century. For instance, even younger business professionals who frequently travel may choose to grant a POA to their spouse, business partner, manager, personal assistant, or another trusted individual. This ensures that someone capable can effectively manage both their personal and business matters during their absence.
Setting Up a POA in UAE
Here’s how it works: You choose a trusted individual to manage your affairs, either in specific areas or overall. You have the option to grant a Power of Attorney (POA) that becomes active only when you are unable to handle your own affairs, or one that takes immediate effect so your agent can act on your behalf whenever you’re unavailable.
It’s important to note that your spouse or family members do not automatically possess your power of attorney, especially when it comes to assets solely in your name. In situations where you are incapacitated or away on an extended trip without a designated power of attorney, your family or business could potentially face significant delays that are both expensive and time-consuming.
A Will Is Not a POA
Your Will cannot replace a Power of Attorney (POA). Wills determine how your property will be distributed after your passing. On the other hand, POAs are effective while you are alive and provide assistance in managing your personal and business matters when you are unable to do so or make decisions on your own.
Who Should Have Your Power of Attorney?
Appointing someone as your representative or attorney-in-fact through a power of attorney carries inherent risks. It is crucial to select someone you trust implicitly. Additionally, it is prudent to establish a contract with your agent, clearly defining their compensation (if applicable), scope of responsibilities, and the circumstances under which they should act.
Conclusion
Setting up a power of attorney can be crucial for anyone. While finding an online template that meets your needs and complies with local laws is one option, it’s essential to execute it correctly with a Notary Public. Due to the legal intricacies involved, it’s advisable to have a lawyer prepare your power of attorney, particularly when it concerns your valuable assets.
In the UAE, establishing a legally binding power of attorney requires both the principal and the agent to be at least 21 years old and possess the mental capacity necessary to comprehensively grasp the document’s purpose and impact.
A Power of Attorney (POA) can be cancelled or revoked at any time by executing a formal revocation document at a Notary Public. This document informs all parties involved that the POA is no longer valid.
Disclaimer: The information provided on this page is intended for general informational purposes only and should not be construed as legal advice. It should not be relied upon as the foundation for any particular action or decision. Nothing on this page establishes a lawyer-client relationship or constitutes legal advice for any specific situation. Visitors to this website are encouraged to seek personalized legal advice from a qualified attorney regarding their specific legal concerns.