When to Use a Power of Attorney in the UAE
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A Power of Attorney (POA) is one of the most useful legal tools in the UAE, but it is often misunderstood. A POA does not replace a Will, and the two documents serve completely different purposes.
A Power of Attorney is valid only during the lifetime of both:
- the grantor (the person giving authority), and
- the attorney/agent (the person receiving authority).
If either party dies, the POA becomes automatically void.
A Will, on the other hand, takes effect only after death, governing the distribution of assets and guardianship arrangements and guiding the probate process.
Key point:
A POA cannot be used to distribute assets or manage affairs after death. Only a Will can do that.
POAs are widely used by residents and non-residents for situations where someone needs to act on their behalf. Common scenarios include:
- Travel: Allowing a representative to manage property, banking, or legal matters while abroad.
- Medical situations: When someone is hospitalized or physically unable to attend appointments or manage affairs.
- Mental incapacity: A POA can authorize a trusted person to act if the grantor becomes temporarily or permanently incapacitated.
- Specific transactions: Real estate sales, company setup, bank dealings, vehicle transfers, and court appearances often rely on a POA.
Once notarized and registered with the relevant UAE court or notary public, the appointed agent can act strictly within the scope of powers granted.
A POA is therefore a living-authority tool, while a Will is a post-death planning tool. Both are essential, but each serves a distinct and non-overlapping role in UAE estate and personal planning.