Power of attorney
Querist :
Anonymous
(Querist) 31 March 2010
This query is : Resolved
Can holder of POA gift the property?
n.k.sarin
(Expert) 31 March 2010
no,holder of POA can not gift the property.
Raj Kumar Makkad
(Expert) 31 March 2010
Generally not until and unless such power is vested in POA.
Deekshitulu.V.S.R
(Expert) 31 March 2010
It depends on the terms of the POA. If the right is given to make any transfer then he can gift the propety.
A V Vishal
(Expert) 31 March 2010
A PoA may be general as well as specific.
A specific PoA is always preferable as against a general PoA that confers sweeping powers to the PoA holder.
In a specific PoA, the PoA holder is authorized only for the particular transaction that has been mentioned in the PoA. For example, the specific PoA could be to do with investing in mutual funds. Such a PoA will not authorize the PoA holder to undertake any other transaction on behalf of the principal apart from making mutual fund investments. For example, such a PoA holder will not be able to enter into real estate transactions on behalf of the principal or buy and sell shares or even sign the tax return form.
Since the PoA is a powerful instrument which can be used as well as abused either intentionally or unintentionally, it is very important that the principal gets it drafted from a competent lawyer. It is a case of being safe now than sorry later.
Banking transactions are another area where a PoA is very useful. In fact, most banks have a pre-specified format. Any resident person can be issued such a mandate to operate the bank account on behalf of the principal.
However, such operations are restricted to withdrawals for local payments or remittance to the account holder(s) himself through normal banking channels. The PoA/Mandate holder cannot, however, make payment by way of gift to a anyone on behalf of the account holder or to transfer funds from the account to another account.
G. ARAVINTHAN
(Expert) 31 March 2010
Gift deed can be executed only by the Donor
Parveen Kr. Aggarwal
(Expert) 31 March 2010
Why not?
If the principal has authorised his agent under the deed of power of attorney to execute and get registered a gift deed qua his property(ies) then why he cannot do so?
Certainly if authorised, any gift made by a power of attorney holder is perfectly legal, valid and binding.
n.k.sarin
(Expert) 02 April 2010
gift only can be made by the donor in the presence of donee. acceptance of gift is a one of the essential factor with other factors.
