In India, conversations about estate planning often revolve around Wills, property, and inheritance. However, an equally important legal tool that is often overlooked is the Lasting Power of Attorney (LPA).

If you or a loved one were to lose mental capacity due to age, illness, or accident, who would legally manage your financial affairs, access your bank account, or make decisions about your medical care?

This is where a Lasting Power of Attorney comes in. In this blog, we’ll explain everything you need to know about LPAs in the Indian estate planning context—what it is, why it matters, how to create one, and how it protects your family when life takes an unexpected turn.

What Is A Lasting Power Of Attorney?

A Lasting Power of Attorney is a legal document that allows a person (known as the donor) to appoint one or more trusted individuals (attorneys) to make decisions on their behalf, should they become unable to do so due to loss of mental capacity.

Unlike a General POA or Ordinary Power of Attorney, which is often valid only for a particular time or purpose, a Lasting Power remains in force even after the donor loses capacity—hence the term “lasting.”

In the Indian context, while the term “Lasting Power of Attorney” is not codified in a specific statute like it is in some other countries, you can still create a durable, specific, or enduring power of attorney with similar legal strength, provided it is properly documented, witnessed, and registered where applicable.

Types Of Power Of Attorney: Know The Difference

Why Every Family Should Consider A Lasting Power Of Attorney

Here’s why an LPA is essential for modern Indian families:

• Uninterrupted access to finances: Without a POA, even your spouse may not be able to manage your bank account or investment accounts.
• Avoid family disputes: Clearly appointing who will act avoids misunderstandings and fights between family members or other family members.
• Protect property and money: Ensures your financial affairs are handled by someone you trust if you become incapacitated.
• Medical care and best interests: Your LPA can include decisions about medical care, daily routine, and even life sustaining treatment.
• Support during illness or old age: Whether it’s dementia, stroke, or coma, your chosen person can act without legal roadblocks.
• Plan ahead with peace of mind: You maintain control by choosing your attorney while you still have mental capacity.

What Can An Attorney Do Under A Lasting Power?

The powers granted under a Lasting Power of Attorney can cover:

a) Property and Financial Affairs

• Accessing bank accounts
• Managing investment accounts
• Selling or buying property
• Paying bills and managing debts
• Making tax and insurance-related decisions
• Handling internet banking

b) Health and Welfare

• Deciding on medical matters
• Choosing hospitals or treatments
• Deciding if the donor should move into a care home
• Managing day-to-day routines (meals, hygiene, etc.)
• Making an advance decision about treatments in serious illness

You can choose to grant broad powers or restrict your attorney to certain decisions only.

Who Can Be Appointed As An Attorney?

You can appoint:

• Your spouse or civil partner
• Your adult children
• A close friend or trusted relative
• A legal or financial professional

They must:

• Be 18 years or older
• Be mentally capable
• Not be declared insolvent (for financial affairs)
• Act in your best interests

You can appoint:

• One attorney (sole authority)
• More than one (to act jointly, or jointly and severally)
• A replacement attorney in case your primary choice is unavailable

When Does A Lasting Power Of Attorney Take Effect?

• It can take effect immediately after signing, even if the donor still has capacity (useful in old age).
• Or, you can specify that it should take effect only if you lose capacity, as certified by a medical professional or certificate provider.

What Happens If You Don't Create A Power Of Attorney?

If you lose mental capacity and haven’t appointed a POA:

• Your family members will need to approach a competent court to be appointed as a guardian or representative.
• The process is lengthy, expensive, and emotionally draining.
• Courts or state authorities may end up choosing someone you wouldn’t have picked.
• Your property or financial matters may remain frozen until legal authority is granted.

In short, without a POA, your family loses time, money, and sometimes, control.

Key Documents & Process For Creating A Lasting POA

While India doesn’t have a centralised LPA form, you can draft a robust legal document that covers your intent.

a. Drafting the POA

• Include full details of the donor, attorney(s), and powers granted
• Specify when it comes into effect
• Mention revocation conditions

b. Execution

• Signed by the donor while mentally capable
• Attested by two independent Witnesses
• Ideally notarised or registered (especially for immovable property or long-term use)

c. Registration (Optional but Recommended)

• Register at the Sub-Registrar’s Office (under Registration Act, 1908)
• Mandatory for transferring real estate
• Provide identity proof, address proof, LPA form, and photographs

Can You Cancel Or Amend A Lasting Power Of Attorney?

Yes, as long as the donor has mental capacity, they can:

• Revoke the POA
• Replace attorneys
• Add new powers

On the principal’s death, all powers automatically cease. The estate is then governed by the Will or succession law.

Common Scenarios Where An LPA Helps

LPA vs Will: Do You Need Both?

Absolutely. A Will comes into effect only after death. A Lasting Power of Attorney is relevant during your lifetime, when you're alive but incapacitated.

Both serve different purposes in a comprehensive estate plan.

Myths About Power Of Attorney

Myth 1: "I’m young. I don’t need a POA."

Accidents and illnesses don’t wait for retirement.

Myth 2: "Only rich people need this."

If you have a bank account, investments, or health issues—you qualify.

Myth 3: "My family can automatically step in."

Not legally. Even your spouse or adult children need documented authority.

Tips For A Strong LPA

• Choose wisely: Your attorney must be reliable and financially savvy.
• Be specific: Define the powers granted and include instructions.
• Inform your bank: Some banks require additional documentation to activate the POA.
• Review regularly: Update if your life circumstances change.
• Store safely: Keep original and copies in accessible but secure places.

The Bottom Line: How Yellow Can Help

Creating a Lasting Power of Attorney isn’t just a legal step—it’s an act of love and responsibility. It means protecting your family members from unnecessary stress and ensuring that your financial affairs and health decisions are managed with dignity.

At Yellow, we simplify estate planning so that you can:

• Create a durable power of attorney with legal support
• Customise it to your life, family, and financial situation
• Register it for better enforceability
• Get advice from estate experts and lawyers

At Yellow, we can help you with all aspects of estate planning, including Wills, Trusts, Powers of Attorney, Gift Deeds, Legal Heir and Succession Certificates, and Living Wills. We also offer post-demise and asset transfer services. Our team of legal experts has more than 50 years of combined experience.