PURPOSE OF POWER OF ATTORNEY

The scope and duration of this authority can be customized based on the needs of the principal. The purpose of a POA is to ensure that important decisions and transactions can still be carried out when the principal is unavailable, incapacitated, or otherwise unable to act personally.

1. Financial Management
A common purpose of a POA is to authorize the agent to manage financial affairs on behalf of the principal. This includes: Managing bank accounts; Paying utility bills and taxes, Handling retirement or investment portfolios; Collecting debts or managing insurance; Filing income tax returns, etc. This is particularly useful for elderly individuals, those with disabilities, or people who travel frequently.

2. Legal Representation
In legal matters, a POA can authorize an agent for different purpose like- Sign contracts and agreements; File legal documents or court forms; Represent the principal in legal proceedings; Deal with government bodies or institutions, etc. This helps avoid disruptions in legal processes when the principal is unavailable or unable to act.

3. Real Estate and Property Transactions
Property dealings often require a physical presence for signing and registering documents. A POA is essential when: Selling, buying, or leasing real estate; Managing rental properties; Completing registration or transfer of ownership; Handling property disputes or maintenance, etc. This is commonly used by NRIs (Non-Resident Indians) who appoint someone in India to manage or transact property on their behalf.

4. Medical and Healthcare Decisions (Medical POA)
A Medical Power of Attorney enables a designated person to make healthcare decisions if the principal is mentally or physically incapacitated. The agent may: Consent to or refuse medical treatment; Choose doctors or hospitals, Access medical records; Make end-of-life care decisions (e.g., life support). This ensures the principal’s wishes are respected when they are unable to express them.

5. Business and Corporate Operations
Business owners or partners may use a POA to delegate responsibilities during their absence. The agent may: Sign checks or contracts; Make managerial decisions; Represent the company in transactions; Handle compliance and regulatory matters. This allows businesses to operate smoothly even when key decision-makers are away.

6. International Travel or Residency
Individuals who travel frequently, or those living abroad, often use POAs to manage affairs in their home country. Examples include: Appointing someone to handle visa, tax, or legal matters; Managing local bank accounts or properties; Representing the individual in official dealings. This is especially relevant for NRIs or expatriates who maintain ties with their home country.