I’ve been asked to do a power of attorney. What does this involve, and what should I watch out for?

A power of attorney is a legal document giving someone the authority to act and sign on your behalf. Depending on what type of power of attorney is given, this legal document can be used for a multitude of purposes and can be used by another person to appear on your behalf to sign contracts, at banks, in court or even to create or terminate a service.  

There are two types of powers of attorney: a general one and a special one. A general one authorises an attorney to use it for anything under the sun, while a special one is more limited and is usually created for a particular transaction. The special one will have no legal validity once this transaction is completed.

Are powers of attorney safe?

When giving a power of attorney, especially a general one, you are trusting the attorney blindly. You cannot give a general power of attorney and then try to revoke something that was done and signed on your behalf. Once it is signed and attested according to law, then it can be used freely.

I am a company director. Can I give someone a power of attorney?

There is the misconception that powers of attorney can be used for companies too. Appointments that can be used to represent a company can only be done by a board resolution and not powers of attorney.

I signed a power of attorney 10 years ago. Is it still valid?

Strictly speaking, a power of attorney remains valid until it is revoked in the proper manner according to law. However, it depends on the person receiving the power of attorney: for example, a notary who is publishing a contract or a bank manager who is asked to make a transaction may very well refuse to accept it unless it is renewed. This gives peace of mind to all involved, including the attorney himself/herself who should feel safer once the document is updated.

I am 75 years old and I want to give my daughter a power of attorney. Why is the notary asking for a doctor’s certificate?

Powers of attorney are risky and all parties prefer to have peace of mind when using them, as well as to be reassured that the person granting the power of attorney is of sound mind. There have been instances when a person was not aware of the implications of signing a power of attorney and found his bank account emptied with no funds to live on, or his house sold to third parties. So, when a notary or a bank asks for a doctor’s certificate, it is safer for all concerned.

The information presented in this article is provided by the Notarial Council for general informational purposes only. For legal or professional advice contact your notary. If you have any questions you wish to ask the Notarial Council of Malta, send an e-mail to notariesofmalta@gmail.com.