A power of attorney (POA), is a written document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal) in private affairs, business, or some other legal matter allowed by that document.
Depending on the needs of the principal, the powers granted under the POA can be wide or restricted to certain areas. For instance, if the principal is travelling overseas at a time when he or she needs to conclude a contract in Singapore, the principal may authorize someone under a power of attorney to conclude the contract on his or her behalf.
However, under common law, a power of attorney is usually revoked by the principal, upon the death or incapacity of the principal, or upon an event specified in the POA document. Therefore it is not so useful in planning for incapacity.
To overcome this problem, the principal can execute what is called a lasting power of attorney, establishes or continues the agent’s powers in the event of death or incapacity. The lasting power of attorney can also provide for the activation of the agent’s powers only in the event of death or incapacity.
To learn more about Power of Attorney or Lasting Power of Attorney, contact your FLA Organization financial planner for more information today.
