Understanding The Difference Between General and Special Power of Attorney

1. Understanding The Difference Between General Power of Attorney and Special Power of Attorney Introduction: Life is uncertain and making plans about your property and wealth after death is not possible. By making certain agreements and arrangements at old age can benefit your family and legacy. Estate planning isn't just about drafting wills; it's also about preparing for the unexpected moments when you might not be able to make decisions for yourself because of any problem that may arise. That's where powers of attorney come into the big picture, it means granting someone the authority to act on your behalf legally and make decisions on your behalf as well. In India, there are two significant types of this decentralization of power: the General Power of Attorney (GPA) and the Special Power of Attorney (SPA), both of these can be used depending on the nature of the need and requirement of the case. To make a sound judgement and inform others we need the right

2. knowledge about the same which can differentiate between GPA and SPA and also promote clarity towards which one to select to fulfil the need. NexGen: Ensuring a Planned Future is Executed in Absence We are NexGen Estate Planners P Ltd. (NexGen) promoted by AAFM India to act as a trusted partner to Financial Advisors / Planners (FAs/FPs) on estate and succession planning matters. With a combined experience of over 100 man-years in estate and succession planning, the NexGen team is made up of seasoned bankers, lawyers, and chartered accountants. We provide two options for clients to benefit from our services: either online or offline. Online clients can use our will writing as well as associated services from the comfort of their homes, while offline clients are able to speak with our team of lawyers for a discussion of complex inheritance specifications along with getting advice and expert solutions. General Power of Attorney (GPA): Think about a time when you’re experiencing a medical emergency or when you cannot manage your affairs personally. Having a General Power of Attorney is analogous to having a highly trusted friend, ready to intervene and act on your behalf. It is a general power of attorney that gives authority to an attorney-in-fact or an agent to take control of various aspects of your life. A GPA provides flexibility and versatility in terms of, from conducting financial transactions, managing property, and entering into contracts, and even standing in for you in any legal matters. Special Power of Attorney (SPA): The difference between the two is not much but it exists. Now imagine a situation where you are not able to assist yourself by selling a house or regarding the important documents, then you require the help of another person to perform those tasks for you. If this is the case, a Special Power of Attorney can be applied. In contrast to a GPA, which has broad authority, an SPA is designed for particular tasks or transactions. It enables you to delegate a specific person to act in your best interests for certain issues, offering special powers in a restricted field. Understanding the Differences: 1. Scope of Authority: • GPA: GPA offers a broad authority on various matters of personal and professional life like attending legal case hearings and making decisions on your behalf for your business or properties. • SPA: SPA is limited to complete authority to perform a task or complete a mission like providing focused authority for selling properties etc. 2. Purpose and Applicability: • GPA: GPA is suited for managing every aspect of an individual's life wherever comprehensive decision-making is required, such as managing finances, property, or business affairs. • SPA: SPA is best suited to address a specific defined task or situation such as executing property transactions, signing contracts, or handling specific legal proceedings.

3. 3. Duration and Flexibility: • GPA: GPA can act on your behalf for a long duration to deal with all the different matters. It can be revoked by the individual when in sound mind. • SPA: SPA often has a specified timeframe or is event-specific, which means as soon as the task is completed, or the situation is met, the powers of SPA end. Why Do You Need a Power of Attorney (POA)? Right now, you are able to make decisions for the rest of your life, but as life is unpredictable, the day may still come when you won’t be able to make decisions on your own because of your incapacity or for any other reasons. A power of attorney is invaluable in such instances. Whether you’re giving someone wide-ranging powers through a GPA to manage all your affairs or task-designing an SPA for specific cases, these legal documents will ensure that your interests are being protected and your affairs managed properly if you aren’t there. Conclusion: When it comes to estate planning and making decisions, it is essential to understand the differences between General Power of Attorney and Special Power of Attorney and NexGen plays a huge role in providing these much-needed services. Whenever you can trust someone to act on your behalf in your absence either for a GPA or SPA you make a very important decision about the lives of your family, so always discuss with the best i.e. NexGen and solve all your issues and become worry-free for a peaceful and cherished life.