A legal document that gives another individual the authority to act on behalf of the principal is called power of attorney. It can also be employed for other purposes, like allowing someone to manage financial matters if the principal has to travel abroad.
But the question arises that who can override a power of attorney, and under what circumstances? Well, the answer to this question depends on the kind of POA at issue. Also, the principal's health and other conditions play a more significant role in this regard. In this guide, we will explain every essential detail about the overriding power of attorney that you must know.
What Is a Power of Attorney?
A POA is a legal agreement in which the principal grants another individual, like an agent, the decision-making authority. The agent isn't required to be an advocate or a lawyer, despite the term; in fact, people often select trustworthy family members who will serve as their attorneys-in-fact.
Depending on what sort of power of attorney is and the preferences of the principal, a power of attorney agreement can give either vast or restricted authority. Some different kinds of power of attorney are listed below.
General POA:
This type of power of attorney grants the agent extensive powers to manage legal affairs and financial decisions on the principal’s behalf.
Limited POA:
A specific or limited power of attorney gives the agent the authority to take charge in certain circumstances, like making healthcare choices and managing financial transactions.
Durable POA:
This type of power of attorney remains enforceable even in the event that the principal is incapacitated.
Springing POA:
This type of POA permits an agent to become functional on behalf of the principal only under specific circumstances, such as situations in which the principal becomes mentally incapable.
Is A Family Member Allowed to Override POA?
Suppose for a moment that the principal is not present in the country or is abroad. Can a relative override the power of attorney in such a situation? Well, the answer to this question is quite simple. A family member can potentially be able to overrule a power of attorney, but they are unable to do so just because they don't agree with the agent's decisions.
The decision to authorize a person is entirely up to the principal. He can hand over his assets to anyone. An agent having power of attorney is required to operate in the best interests of the principal. Imagine you want to revoke a power of attorney because you think an agent is abusing their principal. If so, you must go to court and present proof of the agent's terrible carelessness or abuse.
Who Else Can Override a POA?
There are two additional types of people to consider: executors and guardians. However, the power of attorney and guardianship have some crucial distinctions. To distinguish them, it is sufficient to note that guardianship frequently overrides the powers included in the power of attorney papers.
In the meantime, the executor is someone who is designated in a deceased person's will and is in charge of managing the legal process known as probate once that individual is dead.
What Happens After Overriding A POA?
The agent's ability to make decisions ends instantly upon the overriding of power of attorney. Any transactions carried out by your agent without your approval are void, and if necessary, you can appoint another agent by drafting a new POA document. For the sake of records, you must save copies of the revoked documents and the original power of attorney.
Reasons for Overriding a Power of Attorney
When someone (often a judicial body or government organization) steps in and gains control of a matter while the agent is exercising the authority granted to them under a POA, this is referred to as overriding the POA. The following are some typical causes for this to happen:
The Agent Acts More Than Their Authority:
The principal or another party can attempt to limit the agent's power if the agent is acting in ways that aren't permitted by the POA or making choices that are not approved.
The Agent Is Not Fulfilling Their Duties:
In case the agent is incapacitated and isn’t capable of performing their duties or is dead, then the government agency will intervene to make sure that the assets of the principal are protected.
The Principal Can’t Act Independently Anymore:
A court or another government body can be called in to defend the interests of the principal if they become incompetent or incapable of making decisions for themselves.
There's a Disagreement Over the Legality of The Power of Attorney:
In order to settle the dispute, a government body or a court might be required to get involved.
Limitations And Rights of Power of Attorney
Agents get permission to sign legal documents after having power of attorney. They can also make other important decisions on behalf of the principal, so it is essential to appoint a trustworthy agent when you are setting up a POA.
There are some restrictions for the agent even if he gets the power of attorney. These limitations or restrictions are as follows.
- An agent cannot alter or change your will.
- Your agent is not permitted to act against your best interests.
- Power of attorney cannot be transferred by your agent to another individual.
- Unless they are executors of the will, your agent cannot employ your power of attorney to make choices after you have passed away.
The Bottom Line!
To sum up, we can say that POA is like granting someone special permission to make decisions on your behalf. Overriding a Power of Attorney shows that the individual overriding it is doing so for a valid reason, such as if the individual with authority fails to carry out their responsibilities or when they can no longer make crucial decisions.
