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How to Prepare a Power of Attorney in UAE.
There can be a lot of use for a Power of Attorney, and it is especially handy when it comes to having someone else do tasks for you when you are incapable of doing them for the time being because of being out-of-town, physically or mentally incapable, or something else. In this case, if you are in need of this, it is indeed important for you to have knowledge on what a Power of Attorney can do, the types of it—General and Special Power of Attorney—, and which powers an agent can have when holding the aforementioned document (such as legal, financial, or property transactions). It is also important that you are aware of how to make a Power of Attorney and how to deal with a situation like having a Power of Attorney executed from outside of the United Arab of Emirates (UAE). When you are knowledgeable with regard to this kind of thing, it will be easier for you to decide.
What is a Power of Attorney?
Simply, a power of attorney is a notarized written authority document given by someone (principal) to another person (agent) that gives the latter the power to act on behalf of the former with regard to legal matters. It is of uttermost importance though that the principal giving the power of attorney is over 21 years of age and has a sound mind.
What Does a Power of Attorney Cover?
This is basically used when the principal needs an agent to act on your behalf to handle legal, financial, or property transactions when the principal is currently not available or being out of the country. In cases when the principal needs an agent because the former is incapable of making decisions for the reason that they are unconscious (in a coma), mentally incompetent, physically unable, etc., it could be that the court may get themselves involved in situations like this, ordering a legal Guardianship or Conservatorship for the principal who needs representation.
General VS Special VS Lasting Power of Attorney
The below are the difference between a general and special power of attorney for you to distinguish in which one you fall into.
An agent has the power to manage the things that need to be dealt with on a principal’s behalf when the agent has a General Power of Attorney. This is for only a period of time when the principal is out of the country or his physical or mental health is compromised.
True to its name, a General Power of Attorney has a broad list of things that give an agent a range of powers and responsibilities that are (but not limited) typically the following:
- Managing of bank matters and other transactions
- Filing of tax returns
- Entering into contracts
- Copy of Buying, selling or managing real estate and other properties
- Settling claims
An agent is given an authority to handle a specific affair/s of a principal with a Special Power of Attorney at hand. It is of vital importance to clearly specify the acts that you wish for your agent to perform on your behalf since the Special Power of Attorney is limited to those certain acts written in the document only.
A Special Power of Attorney can be used by an executor to give powers to an agent on the former’s behalf in cases when the principal would fall ill or be disabled or even out for a travel or simply unable to manage a certain task. The principal can appoint an agent with the powers listed under General Power of Attorney or any other powers that the principal necessary for the agent to have in order to fully act on his behalf.
The lasting power of attorney was created under the Mental Capacity Act of 2005 under the English law, which governs England and Wales and implemented in 2007. It replaced the enduring power of attorney that was believed to have a narrower scope compared to the lasting power of attorney.
Basically, it covers the people who can see in the future that they won’t be able to be physically or mentally capable of doing their own personal, financial, or business affairs. It is used to make arrangements for them to appoint members of their family or even friends to make decisions on behalf of them.
In UAE, however, there is no law with regard to lasting power of attorney.
How to Prepare a Power of Attorney in UAE?
Essentially, the documents needed for getting a Power of Attorney must all be prepared. Different Power of Attorneys may have individual or additional requirements. For an instance, a Power of Attorney that is used for selling a property needs an additional document that is the original title deed. The Power of Attorney itself can be done by a typing center and the document should be both in Arabic and English. The stamping and attestation will then be done in the Dubai Courts.
In the cases that a Power of Attorney is executed in another country but will be used in the UAE, the following must be done:
- The document needs to be signed in front of the notary/magistrate/solicitor in the said country
- The document needs to be attested in the foreign office of that country
- The document needs to be legalized by the UAE Embassy in that country
- The document needs to be translated into Arabic in the UAE
- The document needs to be attested by the Foreign Office in the UAE
- Lastly, the document needs to be legalized by the UAE’s Ministry of Justice
At any point of time, the principal or executor can cancel the power of attorney that he has given whenever he deems necessary. And as mentioned above, since the UAE has no law regarding lasting power of attorney, the power of attorney given to an agent will be canceled at the death of the executor. Also, if the Power of Attorney is made for a certain timeframe only, it will automatically expire when the period comes.
The cancellation of a Power of Attorney or simply called irrevocable Power of Attorney cannot be done or signed in Dubai; it is, however, possible in other Emirates such as Abu Dhabi and Sharjah.
There can be various documents needed for a Power of Attorney depending on the department using them as discussed above.
If you would like to discuss this further please do not hesitate to call and we will happily introduce you to our affiliated partner who specialises in setting up POAs in UAE.