Power of Attorney is an instrument that empowers the principal to appoint an agent to execute particular acts or deeds on his behalf. E.g., if one is out of the country or is disabled due to a medical condition.

A power of attorney is of two types, General Power of Attorney (GPOA) and Specific Power of Attorney (SPOA).

The test to determine under which category a given document falls depends upon the subject matter on which the power is given. If it is restricted to some specific matter, it is specific, or else it is general.

A GPOA is a legal document that accords an individual (referred to as an agent) to act on behalf of another (referred to as the principal). The principal accords the agent this power because of specific situations preventing him/her to make the decisions. Under GPOA the agent would have the power to make legal, medical, financial, and business decisions but not real estate. It is irrevocable, and the principal must agree to confirm what is done by the GPOA. 

An SPOA is a legal document that authorizes an individual, called an agent or an attorney, to act on behalf of another individual, called the principal, under particular circumstances. The principal may execute more than one SPOA, naming a different person in each one.

Difference between GPOA and SPOA

SPOA accords an agent the power for a limited action under a restricted situation such as buying or selling a home, withdrawing money from an account, or running a business. On the other hand, a general power of attorney scope is broader.

A general power of attorney grants the legal right to an agent to make all financial and legal decisions on behalf of the principal. A person may give an agent substantial powers to carry out personal and business financial transactions, bill payments, life insurance purchases, charitable donations, real estate management, and the filing of tax returns.

SPOA may require notarization for legal status.

A power of attorney becomes void if its principal dies or becomes disabled. However, an SPOA can be made long-lasting.

A durable or long-lasting power of attorney will enable an agent to continue acting on behalf of the principal even after the principal becomes disabled, e.g., due to a head injury. If a person does not already have a durable power of attorney in place and cannot execute an SPOA, the court will impose a guardianship to act on their behalf.

Once a person dies, the SPOA becomes void, and the last will take precedence.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.