In simple terms, a power of attorney is that if a person cannot execute a document by himself, he/she can give the power or authorize a third party to execute a document for himself when the permission is provided or granted. There may be different kinds of power of attorney.
Types of power of attorney:
1. The General power of attorney
In the General power of attorney, the principal grants the holder of a power of attorney the powers to achieve a specific purpose or goal for which a power of attorney is granted.
2. The special power of attorney
It means that only a few powers are allowed to exercise, not all the powers can be used. These powers are only those powers that are given in the power act.
There must be a clear understanding of all of the procedures and legal aspects involved in revocation once a power of attorney is given to an attorney to avoid abuse or illegal use of attorney power. Revocation of this power means that you can change your mind at any given time about the person on behalf of yourself for legal matters, health, or any other matter. It is clear from the name that all the powers you have provided to the given person can be canceled or revoked. It is the same as how a principal can create power; he/she can also cancel the power provided.
How to revoke a power of attorney?
To revoke a power of attorney, you will first need to complete a form known as the Revocation of power of attorney form.
There are the following requirements to put on the form.
Former agent: That person who previously had your power of attorney.
Principal – Name of the person who previously requested help for legal matters or business.
Effective date: The date when the power starts
Signatures: The notary and principle sign to be taken on form.
Once you and the notary have signed this legal document, the former attorney no longer has the authority to act on your behalf. There may be several reasons to revoke a power of attorney; these reasons are given below;
- Divorce or become a widower
- He no longer travels abroad and can manage his affairs.
- End your long trips abroad and come home
- You had a bad experience with your current agent, and you don’t trust him anymore.
What if you do not revoke POA?
It can create trouble for you as the wrong person will have the powers you do not want him/her to have. If you don’t cancel your old agent’s power of attorney, the person will have the legal power to represent you in all important financial and business decisions.
By taking the time to create a POA revocation, you can avoid the following suffering:
- Trying to go after an agent who has reset their accounts.
- Challenge unauthorized transactions initiated by a former agent
- Recover all the money that has been illegally withdrawn from the principal’s bank account
- The mental anguish of experiencing a breach of trust from an agent who abused or misused his power
- Losing control over the smooth running of your business.