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Working as a freelancer sometimes requires extra hands. If your business is expanding, there may come a time when you need to delegate certain responsibilities or decisions to a trusted person. However, this must be done legally, and that's why today we're teaching you how to fill out a power of attorney form, along with other details and some examples.
A power of attorney is a legal document where you can grant authority to another person to act on your behalf or make decisions on specific matters. It is usually a power of attorney PDF that is used for various procedures, whether personal, legal, or financial.
As a freelancer, you can use it to delegate the management of finances or administrative tasks where you cannot be physically present.
For example, if you want to manage your finances as a freelancer, you can authorize a legal representative to handle it through a power of attorney.
Thanks to this tool, you will be able to efficiently manage issues related to your business, as well as maintain the continuity of your commercial operations, even in your absence.
The structure of a power of attorney can vary depending on each person's needs. Generally, it includes the following elements:
Heading. This is where the information of the principal and the agent, i.e., the person granting the power and the one receiving it, goes. The date and place of issuance of the letter are also written here.
Greeting. This is a polite expression that introduces the purpose of the letter in a formal tone. For example, Dear [Name of the Agent].
Granting Declaration. The principal declares that they grant permissions to the agent to act on their behalf on specific matters.
Details of the Powers. The specific types of activities or tasks being granted to the agent are specified. For example, managing and paying Value Added Tax (VAT) to the corresponding tax authorities.
Conditions and Limitations. It's possible to add a clause with conditions or limitations for the exercise of the power. This includes the duration, whether it is temporary or permanent, and any applicable restrictions.
Date and Signature. The date is placed on the power of attorney to formalize it, as well as the handwritten signatures of both parties, plus those of 2 witnesses.
It's ideal to consult with a legal professional to ensure that the power of attorney PDF complies with the requirements and is valid.
Now, how do you fill out the power of attorney?
The preparation requires attention to detail, just like a series of steps. We show you a detailed guide to do it:
The heading is completed with full names, addresses, contact details, and the place of issuance for both the grantor and the recipient.
The letter begins with a formal greeting.
What is being granted to the agent is clearly described.
The specific permissions that the agent will have are listed. These can be administrative, legal, financial aspects, etc.
If there are conditions or limitations, they are also detailed in the letter.
When placing the date, the date from when the document will be valid is added, not the date of drafting.
If necessary, additional clauses are added, such as special conditions or provisions for revoking the power in the future.
It is important to write “I cede” or “I grant” at the moment of conferring the authorization, this followed by the name of the attorney-in-fact.
Preparing a power of attorney involves clearly establishing the powers to delegate and obtaining approval from the designated agents.
Let's look in more detail at each one:
Description of the Authorizations Granted. This section specifies the granted capacities or the reasons justifying their concession. This may include simple administrative procedures, collection management, among others.
Acceptance of the Power. Here, the name and signature of the person to whom the power is assigned are indicated. If there are multiple agents, the phrase "We accept the power" can be included on the back of the letter, along with the names of the people and their respective signatures.
Apart from the involvement of the grantor and the agent, the presence of at least one witness for each is recommended.
Witnesses are fundamental in the validity and authenticity of the document, as stated by the Mexican government.
Their function is to certify that:
The identification of the signatories is correct.
The signatures on the power of attorney are genuine.
The grantor and the agent signed voluntarily and consciously.
The presence of witnesses offers an additional layer of legal protection to the document, as they have the ability to testify to the veracity of the signatures in case of future legal disputes.
Generally, you can choose between two types of power of attorney:
1. Special Power of Attorney. These documents are used for specific situations. In short, they grant the agent the power to limit to what is detailed in the letter. For example, to represent the grantor in a particular judicial process.
2. General Power of Attorney. This type of power grants the agent broad authority over the grantor's affairs. In this case, it can cover the management of financial matters, signing contracts, banking transactions, among other aspects related to the grantor's assets and activities.
As you can see, each has different purposes, so it depends on what you need.
A clear and well-drafted power of attorney is essential for your instructions to be executed correctly. Therefore, we offer you some useful tips that will help you avoid mistakes when filling it out:
Identify the tasks or decisions you need to delegate clearly to ensure the document reflects your specific needs.
Look for a standard power of attorney model that meets legal requirements and adequately reflects your intentions.
Opt for fonts that give coherence and professionalism to the document, such as those used in APA norm covers.
Thoroughly review the power of attorney before signing to ensure it is correct, complete, and error-free.
If you have doubts about the wording or content of the power of attorney, consult a professional.
There are many power of attorney PDF templates, as not everyone has the same needs.
Below, take a look at these filled-out power of attorney examples:
2. Simple power of attorney for procedures.
3. Simple power of attorney for vehicular procedures.
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