What is Special Power of Attorney?

A special power of attorney is a document that grants a person legal rights to make financial and legal decisions on behalf of their client. It is also known as a limited power of attorney (LPOA); the authorised person is called an agent or attorney. This arrangement is done under specific and laid-out circumstances. 

For example, if a person cannot carry out specific legal actions or financial transactions for reasons such as not being present in the country, medical conditions or specific personal reasons, then the person can authorise an attorney on his behalf. The person initiating the power of attorney is the grantor or principal.  

 

See also: Power of Attorney Format

 

How does Special Power of Attorney work?

In the case of special power of attorney, the circumstances under which authority can be granted to an agent are particular. It is due to the power of attorney being limited to what is stated in the signed document. Hence, the grantor must be highly specific and clear of the powers they intend to grant the agent. This helps protect the grantor’s interests and assets since the agent has power over restricted authorised actions. 

Special power of attorney is often used for temporary situations and provides a way for an expert to step in and manage the client’s affairs on a short-term basis. Moreover, the grantor can create more than one extraordinary power of attorney, each for specific tasks. 

Tasks for which special power of attorney can be used:

• Business transactions
• Real estate transactions
• Healthcare decisions
• Emergency preparedness
• Family and personal matters

In essence, the significance of a special power of attorney lies in its ability to grant limited authority while providing solutions for situations where the client requires assistance and control over the situation.

 

Difference  between GPA and SPA

The primary difference between a General Power of Attorney (GPA) and a Special Power of Attorney (SPA) is that a GPA provides a broad range of powers. At the same time, an SPA is more limited and tailored to specific tasks or circumstances. 

 

Aspects	GPA	SPA
Scope of Authority	Broad and comprehensive for various matters	Limited and specific for defined situations
Continuous Effect	Typically continuous unless revoked or limited	Often for a specific duration or task
Flexibility	Provides flexibility for a wide range of tasks	Tailored for specific transactions or events
Specificity	Broad powers without detailed specifications	Clearly outlines specific powers and tasks
Use Cases	Suitable for ongoing management of affairs	Commonly used for specific transactions
Duration	Until revoked, incapacitation, or principal’s death	Expires after completing specific tasks or conditions
Examples	Managing finances, real estate, legal matters	Selling a property, handling a specific account
Legal Requirements	May require notarisation, depending on jurisdiction	Similar notarization and witnessing requirements, if applicable

 

Durability and Legal Transitions of Special Power of Attorney

A special power of attorney loses its effectiveness if the person who granted it (the principal) passes away or becomes unable to make decisions, known as incapacitation due to injury or mental illness. However, it is possible to make a special power of attorney ‘durable.’ 

A durable power of attorney allows the appointed agent to continue acting on behalf of the principal even if the principal becomes incapacitated. When an individual lacks a pre-established durable power of attorney and cannot create a special power of attorney, the court may intervene by appointing a conservatorship or guardianship to decide on their behalf.

Upon the death of an individual, the extraordinary power of attorney becomes invalid, and the instructions outlined in their last will take precedence.

 

What are the necessary documents for creating a power of attorney?

The requirements for registering Power of Attorney, besides witnesses, include:

• Draft of the POA: Original written POA draft.
• Identification Proof: Proof of identity for all parties involved.
• Proof of Property: Electricity bill or tax receipt (for property-related POA).
• Photograph: Passport-size photograph of each party.

 

FAQs

How is a special power of attorney drafted?

To draft a special power of attorney, specify the granted powers, scopes and limits, including witnesses required, and ensure both parties sign and date the document.

What is the difference between GPA and SPA?

A general power of attorney (GPA) grants broad authority to the agent to handle legal and financial matters. In contrast, an extraordinary power of attorney (SPA) provides a more restricted set of powers under predefined situations.

What is the validity of GPA?

A GPA is valid as long as the principal is alive and can also be revoked at any time by the principal. On the other hand, SPA is cancelled as soon as the agent completes the assigned task.

Can power of attorney be given to non-blood relatives?

Individuals who are not blood relatives, like cousins, uncles or aunts, are eligible to receive Power of Attorney (POA), subject to a stamp duty of 5% of the sale amount.

Where can I register power of attorney in India?

It can be done at the sub-registrar office where the person granting the power resides.

Is a notarized power of attorney considered valid in India?

Yes, under section 14 of the Notaries Act of 1952, the central government has the authority to recognise and accept notarial work conducted in other countries by Notaries as valid in India.

Is power of attorney valid from one state to another in India?

Yes, a power attorney registered according to the provisions of the Indian Stamp Act are valid in all the states of the country.

Is attestation required for a power of attorney?

Attesting a Power of Attorney is essential, as it validates both you and the document's authenticity.

How many types of power of attorney are there in India?

There are two types of Power of Attorney in India, i.e. General and Special Power of Attorney.

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