A power of attorney is a legal document that grants a person the authority to act on behalf of another person in specific circumstances. The person who grants the power is known as the principal, while the person receiving it is known as the agent or attorney-in-fact. The power of attorney can be revoked or cancelled by the principal for any reason, but the process can be complicated and requires careful consideration. In this blog post, we will discuss how to cancel a power of attorney.
Understanding the Types of Power of Attorney
Before discussing how to cancel a power of attorney, it's essential to understand the different types of powers of attorney. The two most common types are a durable power of attorney and a non-durable power of attorney. A durable power of attorney remains in effect even if the principal becomes incapacitated or unable to make decisions, while a non-durable power of attorney is terminated when the principal becomes incapacitated.
There are also special or limited powers of attorney that are used for specific situations, such as real estate transactions or medical decisions. These powers of attorney are typically not durable and expire once the specific transaction or decision has been made.
Reasons for Cancelling a Power of Attorney
There are many reasons why a person may want to cancel a power of attorney. Perhaps the agent is no longer trustworthy or competent, or the principal no longer requires their services. In some cases, the principal may have regained their ability to make decisions and no longer needs an agent to act on their behalf.
Another common reason for cancelling a power of attorney is the death of the principal or agent. In this case, the power of attorney is automatically terminated.
Also Read - Can A Power Of Attorney Holder Sell Property? And also know Who Is The Testator In A Will?
How to Cancel a Power of Attorney
Cancelling a power of attorney can be a complicated process, and the steps may vary depending on the state or jurisdiction. However, the following steps are generally required to revoke a power of attorney:
Step 1: Draft a Revocation of Power of Attorney
The first step in cancelling a power of attorney is to draft a revocation of power of attorney document. This document should be dated and signed by the principal and include the following information:
- The name and address of the principal
- The name and address of the agent
- The date the power of attorney was executed
- A statement that the power of attorney is being revoked
- The date the revocation is effective
- The signature of the principal
Step 2: Notify the Agent
Once the revocation of the power of attorney document has been drafted, the principal must notify the agent that their authority has been terminated. This can be done in person, by phone, or by certified mail. It's important to keep a record of the notification, including the date, time, and method of communication.
Step 3: Notify Third Parties
The next step is to notify any third parties that may be affected by the cancellation of the power of attorney. This may include banks, financial institutions, and government agencies. It's important to provide them with a copy of the revocation of power of attorney document and any other relevant information.
Step 4: Destroy the Original Power of Attorney Document
The final step in cancelling a power of attorney is to destroy the original power of attorney document. This should be done to prevent any confusion or misunderstandings in the future.
Conclusion
Cancelling a power of attorney can be a complicated process, but it's essential to ensure that the agent no longer has the authority to act on behalf of the principal. The revocation of power of attorney document should be carefully drafted, and all parties should be notified of the cancellation. If you are unsure about how to cancel a power of attorney, it's always best to consult with an attorney to ensure that the process is handled correctly.
Posted by Bunny
No comments yet