Importance Of Power Of Attorney.


A power of attorney is a grant of legal rights and powers by one person to another. The person granting the powers is know as the principal, and the person receiving the power is known as the agent or attorney-in-fact. The agent essentially stands in the shoes of the principal and acts for him/her on financial matters. If the documents so states, the agent can do most anything the principal can do in financial transactions — withdraw funds from bank accounts, trade stock, pay bills, and cash checks.  It is important to choose this person carefully because he or she can control your assets. You can prefer digital power of attorney.

A power of attorney can be very handy in the event that one is unable to take care of his/her own financial affairs, for reasons such as extended travel or illness. This type of document becomes even more important, however, in the event of mental incapacity. A standard power of attorney will terminate upon the principal’s mental disability. However, a durable power of attorney will continue beyond mental incapacity or disability to provide the principal with a safety net of financial management. Nowadays, the Ethiopian Embassy Consular provide POA with the help of E-POA iOS and Android app.



Third parties that may become involved in transactions with the named agent by presentation of the power of attorney should also be considered. This third party could be a real estate purchaser or seller, a retirement plan administrator, or the principal’s business associates.

When preparing the document the principal should consider particular types of transactions or accounts, which financial institutions are likely to be relying on the document, and the nature of the accounts owned by the principal, to aid document acceptance. Verifying the authority of the attorney-in-fact to act for the account owner, therefore, is the first priority of every financial institution, and each principal and his/her agent should set this expectation.  Although, the typical power of attorney may grant the agent very broad powers, it does not give the agent full authority to take the principal’s money and run away with it. 

It is important to note that a power of attorney does NOT take away the rights of the principal.  It is similar to handing the keys to ones car to someone else. Just as the keys can be taken back, so can a power of attorney be revoked.  Both a standard and a durable power of attorney will terminate upon the principal’s death
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Also, Read How to get fast POA by Ethiopian Embassy Consular?

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