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Business News/ Money / Personal Finance/  Will POA prepared in the US be acceptable in India?
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Will POA prepared in the US be acceptable in India?

Yes, such a Power of Attorney will be acceptable in India

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My son, who is now an American citizen, desires to sell his residential property here in India. He is unable to come to India to sell it. So, he wants to prepare a specific Power of Attorney over there (in the US) in my name. Would such a Power of Attorney be acceptable here? To ensure its complete acceptability here, what all actions should he undertake?

Name withheld on request

 

Yes, such a Power of Attorney will be acceptable in India. However, it will depend on the state-to-state basis as each of the Indian states have a separate and distinct procedure.

The general process is a specific Power of Attorney that will first have to be executed and attested by the Indian consulate in the USA. Thereafter, the Power of Attorney will have to be sent to India and adjudicated by the collector under the Indian Stamp Act, 1899 and proper stamp duty (as adjudicated) will have to be paid within three months from the date of receipt of the Power of Attorney in India. The Power of Attorney will thereafter have to be registered by the Power of Attorney holder and only upon the registration of the Power of Attorney, the holder can act on the powers conferred by the Power of Attorney and enter into a transaction for selling the immovable property.

 

If the nominee dies before the death of a Fixed Deposit (FD) holder and then the FD holder dies before changing the nominee, then can the legal heir of the nominee claim the amount, or would it be that all legal heirs of the FD holder can claim the amount?

— Name withheld on request

 

Nomination is a stop gap arrangement and ultimately the legal heirs of a deceased are entitled to the properties in absence of a Will.

In the present case, the legal heirs of the FD holder will be entitled to claim the FD and not the legal heirs of the nominee as the nominee is only a trustee and acts in a fiduciary capacity for the ultimate beneficiary.

Aradhana Bhansali is partner at Rajani Associates.

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Updated: 23 Feb 2022, 06:37 AM IST
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