How to Avoid Misuse of Power of Attorney in the UAE

A Power of Attorney is a legal document that designates an agent or attorney to act on behalf of the principal. When utilised properly, this is a helpful legal document that can have many benefits. On the other hand, errors on your part or things you failed to consider while drafting your POA may result in its abuse.

You need to be careful while preparing a POA because it provides someone control over your affairs usually without ongoing supervision. This is referred to as “POA Abuse,” and it can be a complex issue that requires legal counsel to safeguard you from possible misuse.

POA abuse can take many different forms, the agent using the principal’s powers for personal gain instead of the principal’s benefit; and the agent acting in ways for which the principal did not give permission.

Factors Contributing to the Misuse of Power of Attorney in the UAE

Lack Of Understanding:

Understanding the various kinds of POAs, the authorities they provide, and when to invoke a POA are all crucial while preparing a POA in the UAE. You can avoid any possible breaches by being aware of the fundamental phrases and ideas of a Power of Attorney in the United Arab Emirates.

Wrong Choice of Agent:

Selecting a dependable and trustworthy agent is crucial. The ideal agent would be someone who is willing to always act in the principal’s best interests and who possesses the knowledge and abilities necessary to handle the principal’s business.

Not Tracking Financial Records:

Financial exploitation is one of the most prevalent ways that power of attorney abuse occurs. If you have concerns about a power of attorney being misused, be sure to keep thorough records of all the money the agent handles. Invoices, receipts, and bank statements can all be examples of this.

Strategies to Avoid Misuse of Power of Attorney in the UAE

Specify the Permissions Granted Clearly in the POA:

The agent’s authority should be precisely defined in the POA form, making sure that it complies with the needs and desires of the principal. This could apply to the obligations, the authorization given, or even the POA’s termination.

Monitor Your Agent’s Activities Regularly:

You or someone you trust should periodically check in on the agent to make sure they are not breaking any agreements, abusing their authority, or displaying any early signs of possible misuse.

Seek Legal Advice:

When drafting a UAE POA, it is advised to get help from a qualified professional or a licensed service provider. Seeking legal advice also helps you draft a legible document without any errors.

Common Misconceptions That Might Lead to Misuse of POAs

A POA Cannot be Revoked:

It is entirely false to say that a POA in the UAE can never be revoked after it has been granted. The person who granted a POA can revoke it at any moment by giving a written notification and then adhering to the legal procedures.

A POA Gives an Agent Full Ownership:

Some who are unaware of the actual intent behind POAs assume that granting someone a POA entitles them to ownership of the assets and money. This is completely untrue, though, as a POA does not transfer ownership to its agent—rather, it merely authorizes action on behalf of the person issuing it. Until a separate formal transfer of ownership is carried out, the principal is still the legitimate owner of the asset or assets.

How to Revoke a POA in Case of Misuse?

Through the process of revocation, you can formally revoke a legal power of attorney in the United Arab Emirates. This process which voids a power of attorney, can be done with the assistance of experts at JustPOA. You can rest assured of complete guidance throughout the process and can have your POA revoked in no time.