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Power of Attorney - General (GPA) & Special (SPA) Explained in Hindi - YouTube
Channel: Asset Yogi
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Namaskar, my name is Mukul and welcome to Asset Yogi.
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Where we Unlock the Knowledge of Finance and Real Estate.
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In this video, I am going to talk in detail about Power of Attorney.
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What is Power of Attorney,
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in which cases it is needed.
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What is General Power of Attorney and what is Special Power of Attorney.
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I will share some real examples with you, I will share the actual document.
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What are the important clauses I have in General
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Power of Attorney and Special Power of Attorney.
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In what cases power of attorney should be used,
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What are their limitations or what are their drawbacks?
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we will also see in which cases power of attorney becomes invalid.
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So you must watch this video from beginning to last,
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so that you do not miss any important points.
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Let's go straight to my computer screen.
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So first of all let us understand what is Power of Attorney,
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suppose you cannot take any financial or personal decision on your own,
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you cannot go anywhere to sign any document, for any reason,
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Can sign a power of attorney can appoint any other trustworthy person
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To take decision on your Behalf or to sign any document.
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What is a Power of Attorney, it is a legal document.
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through which authority is passed from one person to another
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To take any financial or personal decision,
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the person who gives the power of attorney is called the principal.
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And the one who gets the power of attorney, we call them agent.
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and they can have different names,
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some power of attorney you will see that Executant is written for Principal.
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and Agent is written as Attorney
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or we can also call Principal as Granter.
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Because he is granting authority
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and we can also call the agent as grantee
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because he gets the authority to take any decision
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on behalf of the principal.
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So I think you must have understood that
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what kind of document is a Power of Attorney,
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now we understand why a Power of Attorney is needed
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and what are the reasons
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why a Power of Attorney can be signed.
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The Power of Attorney Either if you have health issues,
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or you are physically handicapped,
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you cannot go anywhere, suppose your health is not allowing,
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then you can give Power of Attorney.
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If I tell you as an example, suppose your wife is
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expecting a delivery is going to happen but
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you have to execute any document then you can take power of attorney
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from your wife and execute that document,
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Similarly if there are any travel restrictions for example
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let's say you live in a foreign country
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and you want to sell a property
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or execute some other document
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and you can't come to India
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or go to any other country Wherever you have to execute that document,
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then in that case also you can give power of attorney to a trustworthy
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person who can be locally present there
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and he can sign or execute any document on your behalf.
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So, there can be some other reason,
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suppose you are very busy, you are the business owner,
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you may have to execute many documents, then you
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may not be present everywhere,
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then you can give power of attorney to any of your employees.
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with some limited powers
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so that he can execute the document on your behalf.
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So, Power of Attorney is very popular in businesses,
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because a business owner can't be present everywhere,
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or any Senior official he can't be present everywhere,
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there can be one more reason, suppose,
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if there is an elder person, someone very aged,
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Suppose he cannot take his decision by himself
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or that moment is not possible for him,
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even in that case you can give power of attorney
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to take any of your financial or personal decisions.
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So the power of attorney which is given in general is given for money management
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or is given for Property and Estate management.
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Or it is also given for personal care,
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like I told that suppose there is a very aged person,
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he is very elderly, he cannot take care of himself,
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then he can give a power of attorney.
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Who can take decision on their behalf
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In case of any emergency.
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it can also happen suppose someone is mentally incapacitated
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and he also cannot take his decision on his own then
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power of attorney can be given
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we will also talk in little detail about it,
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before that we will understand that, how many types
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of power of attorney are there at broad level,
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then there are two types of power of attorney,
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one is general power of attorney and the other is special power of attorney.
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We understand both of these power of attorney, with an example,
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first we understand what is general power of attorney.
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This is an Actual General Power of Attorney Whose clips I have removed here,
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so you can see, here it is very important to have a date in it,
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on which day it is executed,
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then for example it was executed on 30 November 2010.
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And along with the details of the attorney who is getting the authority,
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also comes the name, age, address which I have blurred here,
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after that the details of the property,
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for example this general power of attorney given for the property
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then the details of the property are given here,
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for which plot number it is given, or which area it is
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and along with the orientation of the plot
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also what is in East West North South.
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Now, this is done with some general details, Now let us see
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what kind of power is given in General Power of Attorney.
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So these are some clauses, the document for General Power of Attorney
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is not very clear, I have taken this picture of an actual power of attorney,
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so I have still marked some important clauses in it, to explain,
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let me read this out quickly,
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so the first clause as you are seeing
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To manage, control, look after and supervise the above said
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property as my said attorney deems fit and proper.
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So you can see that some unlimited power has been given here,
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so whoever the attorney, whoever is getting the authority,
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he can basically do anything with the property.
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Along with another clause is written
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To let out the said property on rent to any person
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realise the rent of the said property from the tenants.
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So he can also collect rent on that property
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after that along with, to sell, mortgage, gift, release, relinquish,
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transfer the aforesaid property to any one and to receive the earnest
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money and consideration amount
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to execute the said deed/proper deeds.
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So here now seeing that he can also sell that property,
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can also take loan, against that property, he can also gift,
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then you can see that unlimited power is being given in General power in attorney,
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basically, he is a virtual owner of the property,
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whoever is getting that authority,
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what happens in the General Power of Attorney
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that unlimited or we can say Broader Powers are given.
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So whenever you give general power of attorney,
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you should be somewhat careful,
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and you should give power of attorney to trustworthy person
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after that, let's see some more clauses,
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To appoint and remove further attorney.
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So the general power of attorney is within it, whoever is authorized person
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is also given the power that he can also appoint a further attorney,
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with him it is also written that it is irrevocable
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This Power of Attorney is irrevocable
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That means it can't be taken back
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with one more line written in the last
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Generally, to do all acts, deeds and things for me in my name
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and on my behalf in respect of my said property as my said attorney
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may deems fit and proper.
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So in the last one, the principal has written
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that the agent has complete powers,
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to act on behalf of the principals.
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He can take any decision,
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so like I said earlier that unlimited power is given in the general power of attorney,
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many times and much broader power are given, then you should be very careful,
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then he is becoming a virtual owner,
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Any property owner to whom it is authorizing,
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Now let us see what is Special Power of Attorney.
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The Special Power of Attorney Has a Limited Purpose.
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Limited purpose
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which is given to complete a specific task,
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then for example in this power of attorney it is also an actual power of attorney
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I have taken an example of this, I have taken out some of his clippings here,
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so you can see here that the details of the executive are given here,
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this is executive,
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and after that the attorney who is the special attorney,
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to whom this authority is being given,
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Its details have come here, which I have blurred here,
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after that what I told you that limited purpose is special
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power of attorney, so you can see in it,
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To Present, sign and execute the Sale Deed in the office
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of connected Sub-Registrar, for the purchase of FREE HOLD DDA BUILT UP
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so and so
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So in this you can see that there is a limited purpose,
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that a wife is giving this special power of attorney
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to her husband to register a Sale deed.
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And whatever payment has to be made like any other
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earnest money or part payment or full payment
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is related to that sale consideration.
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This special power of attorney has been given
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and it is also written that this power of attorney is irrevocable.
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It cannot be withdrawn
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and this date has been mentioned 19 September 2016 it was executed,
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The Special Power of Attorney's both problems has been solved here,
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it is for limited purpose and it is given for a specific task.
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So this man difference is in general power of attorney and special power of attorney.
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General power of attorney gives unlimited power and special power of attorney
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has a specific purpose and is given only for that limited Tas.
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Now let us understand what is the legal status of Power of Attorney.
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Now, who can you create power of attorney?
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so it's a simple Any mentally sound person,
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in any country can make a power of attorney
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But if someone is mentally challenged or is mentally incapacitated,
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he cannot make power of attorney,
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suppose in some way power of attorney is created of a mentally challenged person,
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then it is considered invalid within any court of law.
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And suppose a person had good mental stability at first
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and he made power of attorney at that time but
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after that his mental capability is not there,
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in that case also the power of attorney is considered invalid.
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So now the question arises, suppose if there is an elderly person,
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someone has become quite old.
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who thinks that my health may deteriorate.
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If he wants to give a power of attorney, what can he do
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in that case, a durable power of attorney is signed
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then through the durable power of attorney, any elder person
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can authorize any of his family members or
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any trustworthy to the person who can make a decision on his behalf.
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even if he looses his mental stability,
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The Power of Attorney generally, any mentally sound person can create
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and mentally challenged person cannot create,
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So with durable power of attorney if anyone feels that the health may deteriorate
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A durable power of attorney can already be signed within that case,
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so now let us see when the power of attorney is considered legal.
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The power of attorney is considered legal when it is signed and dated by the principal.
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So the principal's sign is most important
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as well as the date on which it is executed is important.
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Apart from that it is not necessary that it should be notarized,
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at some places, in some states, it may happen that notarization is compulsory,
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in that case you can get it notarized
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and it is better if you get it notarized.
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But it is not necessary that even if there is a signature of the principal,
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still, it will be considered valid.
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After this, now we see that under which power of attorney becomes invalid.
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The power of attorney may be invalid Suppose if a
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specific task was given for that particular power of attorney for example
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if the task is completed then it will be invalid.
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After that the power of attorney can also be revoked by the principal or agent in writing.
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So they have to be given in writing,
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if suppose the principal is revoking it, he is taking it back,
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then he will have to inform the agent in writing
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.And if the agent is doing it, then he has to inform the principal in writing.
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After that suppose the validity period is ended,
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Power of Attorney can be invalid
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Suppose, it was valid for 2 months only or valid for 1 year only,
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then after that period whatever is written in the power of attorney
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will become invalid after that.
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Apart from that, there are some other reasons, due to which it can be invalid,
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then suppose the principal becomes incapacitated mentally,
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which in that case we have just talked about also becomes invalid
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or the principal which is bankrupt or
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due to some reason he is dead,
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Even then it becomes invalid Power of Attorney
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Suppose, if any case,
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there is a divorce, and suppose Spouse was made an agent
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within that case also it is considered invalid Power of Attorney
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then either it is was divorced or legal separation of husband and wife
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And in this case, the spouse is the agent,
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then the power of attorney is considered invalid in this case as well.
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Now let us consider what are the Drawbacks of Power of Attorney,
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So there is only one drawback which is Miss use by agent
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so suppose you have given some general power of attorney to someone
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and he is taking a decision on your behalf
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suppose he sold your properties without telling you.
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You had some shares or bonds and you held
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them with full unlimited power he sold them.
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or took some of your personal decisions on your behalf.
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which you didn't wanted to take,
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To miss used by agent is the only drawback
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So how can you avoid this Miss use,
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then you can take precaution,
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then first of all you should appoint honest and trustworthy person only.
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Appoint you who is either your family member or a very trustworthy
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friend or a colleague,
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you should appoint him as your attorney.
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Also, you should draft the clauses of power of attorney very carefully,
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so these clauses become very important for power of attorney,
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that's why I have given you some real examples of
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general power of attorney and special power of attorney.
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were shown that what kind of real clauses are there.
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So whenever you get the power of attorney drafted,
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then you should keep these things in mind,
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what is being written in it and what kind of power is being given.
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So after watching this video you must have understood that what is Power of Attorney,
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what types of Power of Attorney are General and Special.
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In general power of attorney as we have discussed, is unlimited power transferred
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So you should be a little careful
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and if you have any specific task then you should give special power of attorney
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And we also saw how it is considered valid in it
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and how it becomes invalid in it.
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If you like this video then please like and share it.
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then do subscribe and press the bell icon.
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Because I keep coming up with some interesting finance and
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investment videos everyday
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So see you in the next video.
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Till then keep learning keep earning and be happy
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