Power of Attorney is a legal concept that empowers individuals to delegate authority to act on their behalf. This comprehensive guide explores the significance, types and procedures surrounding Power of Attorney in Thailand.
In order for a POA to be valid and enforceable, both the Principal and the Agent must be legally capacitated and able to give or execute the powers enumerated. Moreover, the document should be notarized for official use.
What is a Power of Attorney?
A Power of Attorney is a legal document in which a Principal delegates legal authority to an Attorney-in-fact. Powers of attorneys can be general, conferring broad legal authority, or specific, limited to particular deeds. They can also be revocable at any time. A Power of Attorney is a useful tool for individuals engaged in international engagements and transactions, including property transactions and business operations.
A Power of Attorney must be in writing, signed by the Principal and notarized. It must also be witnessed by at least two people. If it will be used for official purposes, it must be accompanied by duty stamps in the required amount. The document can be made enduring by adding clauses making it durable even after the Principal’s death or incapacity. There are different types of Powers of Attorney available under Thai law, the most common being the Special Power of Attorney and the Durable Power of Attorney. The latter is closest to the equivalent of a “durable” Power of Attorney under Western law.
What are the legal requirements for a Power of Attorney?
Powers of Attorney are instruments enabling individuals to delegate their decision-making powers in diverse situations. It is important to understand the legalities and requirements involved when preparing and using such documents.
The applicable law in Thailand stipulates that both the Grantor and Agent must be legally capacitated to grant or execute the powers enumerated in the POA document. Further, the document must conform to formal and substantial requisites such as being notarized after signature by both parties.
The POA can be general in scope or limited to specific actions, and it may be revocable (short-term) or continue (durable) in the event of the Grantor’s incapacity. Furthermore, some government departments require the use of their own standard POA format for particular transactions such as a property sale or business registration. Thus, it is highly recommended that you seek professional assistance from a qualified and reputable Thai law firm when drafting or using a POA.
What are the advantages of a Power of Attorney?
Power of Attorneys offer a great deal of peace of mind and convenience for businessmen who need to conduct business in Thailand. However, it is important to note that signing a Power of Attorney does not automatically give someone authority over your affairs in case something goes wrong. It is therefore wise to consult legal counsel or contact the relevant institutions beforehand in order to know what requirements they have for accepting the POA. For example, the requirement for selling property may differ from that of opening a bank account or receiving your title deed (chanote).
A Power of Attorney can be either short-term for specific transactions or continue in the event of incapacity. It can also be drafted as a durable or living will, which is regulated by the National Health Act of 2007. At Umpire Legal, we can provide consultation and draft your Power of Attorney for you. Our service includes notarization of the instrument after it is signed by both the Principal and Agent.
What are the disadvantages of a Power of Attorney?
A Power of Attorney allows you to empower another person to act on your behalf. The person giving the authority is called the Principal or Grantor and the person receiving the authority is known as the Agent or Attorney-in-Fact. Power of Attorneys can be revoked at any time.
It is important to have the proper documentation in place before you become incapacitated. This can save the expense and stress of expensive legal proceedings.
It is also helpful to have the right type of POA for the particular transaction or situation at hand. For example, if you want to sell or register your property in Thailand, the government departments have specific forms that they require. The POA has to be in those formats in order for them to accept it. If not, they will reject it even though it may be legally valid. Umpire Legal can help you draft the correct type of POA for your circumstances.