Do you need a Power of Attorney?
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The Power of Protection.
Partnerships, trusts, corporations or associations often use Powers of Attorney to:-
¶ Tax Lodgments
Let's say under a Power of Attorney for a partnership to get the tax lodgements done:
- one partner is responsible for lodging tax returns on a yearly basis, audited by an accountant
- another partner pays the accountant who audits the annual accounts
- the class of agents is defined in a Power of Attorney to include all members of the partnership
- the two (2) responsible partners (i.e. the partners who arrange the tax returns and pay the accountant) are replaced by other partners annually
Lots of tasks could be organised to be performed on behalf of a partnership using these kinds of arrangements.
¶ Estate Planning
Let's say in a Power of Attorney for a partnership for estate planning purposes:
- the partnership is defined as the preferred agent of the principal but for the performance of certain tasks
- a class of successor agents are nominated
- successor agents are authorised to delegate management of the principal's interests in the partnership to the remaining partners as their sub-agent if the partner becomes unable to fulfil their functions as a partner
- this authority exclude any rights to income, which are to be managed by the nominated agent in accordance with independent legal advice,
Lots of tasks could be organised to be performed on behalf of a partnership using these kinds of arrangements.
What if rights to manage any claim for income rested with the agents and the successor agents being required to account for the income.
Partnerships, trusts, corporations or associations often use Powers of Attorney to:-
Let's say you are in California and you want a local university professor to solve a technical problem.
Or you want to ensure that if you had a bad car accident, the best people care for you.
Or you need to fly overseas to help someone who is having a crisis and you will be gone for a few months.
Perhaps you just have too much to do and would happily pay someone to help you.
Powers of Attorney offer you a convenient way to regulate these kinds of dealings, often with the benefit of enforceable rights.
With the right Power of Attorney, if that expert stole your idea, or you had that car accident, or had to fly overseas tonight to save someone's life, or wanted someone to help you today, you would have a solution.
In California, and you want a local university professor to solve a technical problem
in California for example, damages may be double and you would in principle, be entitled to every dollar the expert gained from making use of your idea twice over, in reliance upon principles applicable to Powers of Attorney that are not commonly engaged in the course of engaging in other financial transactions, such as for example, retaining a local professor under an ordinary contract for services to design a particular solution.
ordinary people collecting debts or arranging management of financial affairs perhaps as a service, including book-keepers assuming functions to liaise with an accountant, or
Commercial entities such as a partnerships, trusts, corporations or associations often use Powers of Attorney to improve how they operate, including delegation of tasks to professionals.
Retaining an expert to find a solution, arrange or conduct an audit, collect a debt, maintain registrations, manage software, lodge tax returns, arrange insurances, manage or sell property.
A lot of these Powers of Attorney are non-durable
Choosing to have a higher degree of control over the relationship, by assuming the role of principal under a Power of Attorney.
You might create a Power of Attorney to employ a suitably qualified expert to design a business plan.
With a Power of Attorney if the expert attempts to steal your idea, in California for example, damages may be double and you would in principle, be entitled to every dollar the expert gained from making use of your idea twice over, in reliance upon principles applicable to Powers of Attorney that are not commonly engaged in the course of engaging in other financial transactions, such as for example, retaining a local professor under an ordinary contract for services to design a particular solution.
ordinary people collecting debts or arranging management of financial affairs perhaps as a service, including book-keepers assuming functions to liaise with an accountant, or
Commercial entities such as a partnerships, trusts, corporations or associations often use Powers of Attorney to improve how they operate, including delegation of tasks to professionals.
Powers of Attorney are used by all kinds of legal entities to get a particular task or tasks done.
powersofattorney.com supplies premium Powers of Attorney for wide-ranging purposes.
Powers of Attorney are used by all kinds of legal entities to get a particular task or tasks done.
powersofattorney.com supplies premium Powers of Attorney for wide-ranging purposes.
Whilst a Power of Attorney is often perceived as a tool to enable documents to be signed by one person on behalf of another, signing documents is only one of many kinds of tasks that an agent may be authorized to perform.
A Power of Attorney might be used because, for example:-
A Power of Attorney might also be used to acquire incidental benefits, for example to protect confidential information.
A Power of Attorney might be used by a commercial entity (such as a corporation, partnership, association etc.):-
A group of commercial entities might use Powers of Attorney to achieve shared business objectives.[2]
For a person, there is the option to use either a non-durable or durable Power of Attorney, depending upon their needs.
A durable Power of Attorney continues to operate if the principal loses capacity.
For someone deciding for example, whether to use a non-durable or durable Power of Attorney:
Non-durable Powers of Attorney may be used to perform specific transactions or to delegate general authority.
For example, a non-durable Powers of Attorney might be used:-
Durable Powers of Attorney may be used by a person:-
A durable Powers of Attorney is used where the principal wants the Power of Attorney to continue to remain effective, if the principal loses capacity.
A durable Power of Attorney is not simply a Power of Attorney that authorizes the performance of certain tasks if and when the principal loses capacity.
To illustrate, consider that a durable Power of Attorney might be used where:-
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Confident the agent will have a fiduciary duty to protect the interests of the commercial entity. ↩︎
For example, a commercial entity might authorize a commercial entity to control certain funds held in a bank account in the principal's name to arrange payment of expenses related a project, on terms whereby the agent may pay the due monies to creditors as the agent of the principal and the agent remains liable for any mishandling. ↩︎