One of my NRI friends recently asked me can I get my Will signed and registered through Power of Attorney (POA).
In this blog, let’s understand what are the uses of POA and Will and what is the difference between them.
POWER OF ATTORNEY (POA)
- POA is a legal document through which you appoint a person to act on your behalf to manage your property, medical affairs and finances.
- POA can be executed only during your lifetime and not beyond that.
- The person who grants the power to the other person to act on his behalf is termed the grantor or principal or donor and The person to whom the power is granted is termed the Attorney or agent or donee.
- A person who is trustworthy, major and of sound mind shall be appointed as POA.
- The authorized agent can have partial or exclusive power to exercise on your behalf, depending upon the terms and conditions agreed between you both.
- Will is a legal document through which you divide your assets among your beneficiaries as per your wishes.
- Will is written during your lifetime but executed after your death.
- The person who writes a Will is known as the testator and the person who will get the share in the assets is known as the beneficiary.
- The testator needs to be major and of sound mind. Beneficiaries can be any person, organization etc.
- The Will must be written, signed and attested by 2 witnesses.
- For the execution of your Will, you need to appoint an executor who will look after the administration of your assets as per your wishes after your death.
- You can not give any person a POA for signing on your behalf on your Will deed and during its registration.
WHAT’S THE DIFFERENCE?
- The difference is exactly that of life and death. POA can only be executed during the lifetime of a person and Will is executed after death.
- POA is a delegation of power in which you authorize some person to take financial decisions on your behalf whereas in a Will you divide your assets among those persons to whom you want to give after your death.
- In the case of Wills, the power of the executor is not limited but in the case of a POA, the power of the agent is limited.
- The POA can not be used in cases where the person who died didn’t leave a Will. In that case, the court will appoint an administrator to settle the estate.
To conclude, POA and Will can’t be used interchangeably. Both define different purposes. It is important to write a Will to get the peace and joy of securing the future of your family and loved ones.
Write your Will with us now, at AasaanWill. Zaroori Hai!