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Liabilities Toward the Holder of a Power of Attorney

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A properly drafted, notarized, and
witnessed legal document, a Power
of Attorney is signed between individuals to
grant an agent (designated person) authority in making medical, financial, and
other types of decisions on a principal’s behalf, when and as specified in the
agreement. The principal is the one enabling the responsibilities while the
individual or entity being given authorization in carrying out specified duties
is known as the agent.

In the United Arab Emirates, the
execution of a power of attorney is only carried out if it has undergone the
legalization process. A POA will allow an agent in taking financial decisions
upon the demise of the grantor or under a condition that is set in the legal
document. The selected agent, therefore, has the legal responsibility in
implementing the directives of the grantor or principal in accordance to his or
her wishes. If the duties are not being executed, the POA can be used as
evidence during the litigation process for the authorized person.

Here is a much closer look at an
agent’s liabilities in relation to a power of attorney:

Misuse of Health Care Power of
Attorney

POAs don’t directly grant agents
consent in creating a health care decision on a grantor’s behalf. An additional
document has to be attached to the power of attorney, which is known as a
personal directive. The personal directive will ensure an authorized person can
create health care decisions in the event that the grantor is not able to
himself. The problem with this is it exposes the agent and the grantor to
further liabilities down the line.

In most cases, an authorized person
won’t be held liable to civil action when a health care decision is done in
good faith for the principal. If omission of basic health care standards or
negligence is revealed, an agent will be accountable as to why the medical
fitness of the principal has declined.

Potential Conflict

Assignment of a power of attorney
may invite potential conflict especially if the agent is not one of the
beneficiaries of the grantor. The legal heir can oppose to the implementation
of the power of attorney or may not comply with the wishes of the grantor, if
the power of attorney is enduring.

There are many POAs that assign more
than one agent, which most definitely leads to disagreements and conflicts
between the agents later on. Consulting a legal drafting lawyer in Dubai will
help in mitigating conflicts and set out a method for resolution that is both
effective and convenient for the parties involved.

Financial Abuse

A power of attorney may be assigned
in the following ways: ordinary and enduring. For an ordinary power of
attorney, it will remain valid so long as the grantor or principal is alive or
capable of providing instructions to an agent. As for an enduring power of
attorney, it will only continue to be legally binding and valid even after the
principal becomes frail mentally.

Hence, the assignment of a power of
attorney can leave the assets of the grantor, including capital and property,
vulnerable for misuse, most especially if the agent is not a family member. In
order to make sure the wishes of the principal are being implemented correctly,
it’s critical to have an inclusive POA drafted with the guidance of a lawyer in
Dubai.

An experienced legal drafting lawyer
in Dubai will be able to help in ensuring all necessary provisions are included
in the power of attorney. This may or may not include payment of certain amount
to the agent, which can reduce the risk for obligatory tabulation or financial
abuse. The compensation to the agent prevents litigation in the near future
when resources of the grantor are used by the agent for necessary expenses in
relation to the implementation or execution of the power of attorney.

Being assigned and designating a
power of attorney is a very complicated process and responsibility. If it is
not carried forth properly, it will most definitely lead to litigation not just
for the agent but for the principal as well. Consulting with a skilled legal
drafting team in Dubai will help provide an understanding of the liabilities of
a power of attorney better.

How can a power of attorney minimize
risks for parties involved?

First, it is not recommended to do
anything with the assets of the grantor for the benefit or use of the agent.
Additionally, the personal assets of the agent must never commingle with the
assets that are being entrusted by the principal. This can give massive
headaches to parties involved even when nothing wrong was done. It is not
recommended to co-sign loans for a principal as it is more dangerous than
commingling assets and funds. Also, you have to ensure a lawyer in Dubai is
hired for the drafting of a power of attorney.

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