There is a certain risk when creating a power of attorney in Dubai. The person you choose to manage your finances has great authority and could be used improperly. There are some safeguards you can implement, though. Consider having a third-party accountant oversee your financial transactions if you have money problems. An aging family member or friend can sign the POA on your behalf. If you are concerned about this possibility, seek legal help.
Be specific in your powers:
Make sure the POA clearly states when it will take effect. It should also specify the specific powers that your agent will have. This includes designating beneficiaries of insurance policies, making or changing a Will, and transferring property. This is particularly important if you are married and may need long-term care. It will also help you qualify for Medicaid.
Be clear about the terms of your power of attorney:
A POA is not legally binding on your loved one, and both of you must sign it. It should be as detailed as possible. You can also clarify your expectations. If you are unsure about your POA, speak with a lawyer. Generally, an attorney will need to consult a court to make changes.
Avoid third-party incompetence:
Third-party attorneys are reluctant to honor a Power of Attorney. If they fail to follow the terms, they may be liable for damages and attorney’s fees. In some cases, even a mere delay in executing a POA can cause considerable damage. Using a trusted agent is a good idea because they can change your financial situation.
Fraudulent agents can use your POA to deplete your financial assets. Having a POA should be shared with other people. You should also be clear about the powers and responsibilities of your agent. A trusted agent can handle important decisions for you. If you want to protect your loved one’s interests, choose an attorney with high ethics. This person can help you in a crisis.
Ensure that a power of attorney is valid:
A POA that is not valid is invalid. It may contain errors and be ineffective. Hence, it is important to check the POA before signing carefully. It should also state the type of asset the agent holds and its type. There are many types of POAs. For example, a limited POA is an effective document until a certain event occurs.