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How to execute a power of attorney in UAE as a non-resident?

A power of attorney (POA) is a document that allows you to appoint a person or organization to manage your affairs if you become unable to do so. However, all POAs are not created equal.Each type gives your attorney-in-fact (the person who will be making decisions on your behalf) a different level of control.

General Power of Attorney

A general power of attorney gives broad powers to a person or organization (known as an agent or attorney-in-fact) to act on your behalf. These powers include handling financial and business transactions, buying life insurance, settling claims, operating business interests, making gifts, and employing professional help. A general power of attorney is an effective tool if you will be out of the country and need someone to handle certain matters, or when you are physically or mentally incapable of managing your affairs. A general power of attorney is often included in an estate plan to make sure someone can handle financial matters.

Special Power of Attorney

You can specify exactly what powers an agent may exercise by signing a special power of attorney. This is often used when one cannot handle certain affairs due to other commitments or health reasons. Selling property (personal and real), managing real estate, collecting debts, and handling business transactions are some of the common matters specified in a special power of attorney document.


Durable Power of Attorney

Suppose you become mentally incompetent due to illness or accident while you have a power of attorney in effect. Will the document remain valid? To safeguard against any problems, you can sign a durable power of attorney. This is simply a general, special, or health care POA that has a durability provision to keep the current power of attorney in effect.

You might also sign a durable power of attorney to prepare for the possibility that you may become mentally incompetent due to illness or injury. Specify in the power of attorney that it cannot go into effect until a doctor certifies you as mentally incompetent. You may name a specific doctor who you wish to determine your competency or require that two licensed physicians agree on your mental state.

Looking for the perfect grantee

Trust is a key factor when choosing an agent for your power of attorney. Whether the agent selected is a friend, relative, organization, or attorney, you need someone who will look out for your best interests, respect your wishes, and won't abuse the powers granted to him or her.

It is important for an agent to keep accurate records of all transactions done on your behalf and to provide you with periodic updates to keep you informed. If you are unable to review updates yourself, direct your agent to give an account to a third party.

As for legal liability, an agent is held responsible only for intentional misconduct, not for unknowingly doing something wrong. This protection is included in power of attorney documents to encourage people to accept agent responsibilities. Agents are not customarily compensated; most do it for free.

Should you, a friend, or relative suspect wrongdoing on the part of your agent, report the suspected abuse to a law enforcement agency and consult a lawyer.

Can Too Many Agents Spoil the Broth?

While you can appoint multiple agents, decide whether these agents must act jointly or separately in making decisions. Multiple agents can ensure more sound decisions, acting as checks and balances against one another. The downside is that multiple agents can disagree and one person's schedule can potentially delay important transactions or signings of legal documents.

If you appoint only one agent, have a backup. Agents can fall ill, be injured, or somehow be unable to serve when the time comes. A successor agent takes over power of attorney duties from the original agent if needed.

How to execute a power of attorney in UAE as a non-resident?

While allocating an agent with a POA is a rather easy process in the UAE, the process is complicated as a non-resident.Here are the key steps in the process:

  1. The Power of Attorney drafted in English language is to be executed on a non-judicial stamp paper of the requisite value as per the stamp duty prevalent in the respective state.The grantee must be a UAE resident and with a valid Emirates ID.
  2. Each page of the Power of Attorney is to be signed and initialed by the Grantor.The POA should be signed by the Attorney on the last page. 
  3. It is mandatory that the Power of Attorney should be notarized by a Notary Public.
  4. The self-attested and notarized power of attorney ought to be sent to the grantor's state home department for attestation; followed by the country's UAE embassy.
  5. The POA should be further translated into Arabic language by a certified legal translator; attested by the Ministry of foreign affairs in the UAE, the notary public; and finally legalized by the UAE courts.

Wirestork uses a rather simplified model of various levels of attestations by taking care of the entire POA process from start to finish with a one-click order package.Simply give us the basics and we take care of the rest.Interested to know more?Give us a shout.

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