A power of attorney (POA) is legally founded on trust and personal consideration, making the life and legal capacity of its parties essential for its continuation. Upon the death of either the principal or the agent, the relationship shifts from contractual will to the rules governing estates and inheritance. This creates a new legal reality requiring clarity on when the POA terminates entirely and when its effects may exceptionally continue to protect established rights.
The General Rule: Effect of Death on the Validity of a POA
Under Article (954) of the UAE Civil Transactions Law, a power of attorney terminates by operation of law in specific cases, most notably:
- Death of the principal
- Death of the agent
- Loss of legal capacity of either party (due to insanity or incapacity)
Effect of the Principal’s Death on the Agent’s Authority
Under UAE law, the agent derives authority from the will of the principal. Once the principal passes away, that authority ceases immediately. This results in:
- Freezing of powers: The agent may no longer use the POA for sales, purchases, or signing before government authorities.
- Criminal liability for unlawful use: Using a POA after knowledge of the principal’s death in the UAE may constitute a criminal offense, potentially classified as forgery of an official document or breach of trust.
Effect of the Agent’s Death on the Continuation of the POA
If the agent dies, the agency relationship does not pass to the agent’s heirs. Article (954)(d) of the UAE law imposes specific obligations on the agent’s heirs:
- Immediate notification: Heirs must promptly notify the principal of the agent’s death.
- Protective measures: They must take necessary steps to safeguard the principal’s interests until documents and entrusted items are delivered.
Exceptions: When Does a POA Continue After Death?
Despite the general rule of termination, UAE law and judicial practice recognize limited exceptions to protect rights:
- POA involving a right for the agent or a third party: If the POA was issued in favor of the agent or a third party, UAE courts tend to protect such vested rights.
- Acts performed before knowledge of death: Article (960) provides that transactions concluded by the agent before learning of the principal’s death remain valid and enforceable.
- Urgent acts: The agent may continue actions whose interruption would cause serious harm to the estate.
Ordinary vs. Irrevocable POA Upon Death
UAE practice distinguishes clearly between administrative POAs and those issued to secure rights:
| Comparison Aspect | Ordinary POA | Irrevocable POA |
| Effect upon death | Terminates immediately by law | Continues if expressly stated to survive death |
| Revocation | The principal may revoke at any time | Cannot be revoked without the agent’s consent or a court judgment |
| Digital systems | Automatically canceled in government systems | Remains valid for completing the agreed transaction |
| Common use | Administrative matters | Sale of real estate or vehicles to secure buyer’s rights |
Transactions Conducted Before Knowledge of Death
The law protects good-faith agents and third parties.
If an agent conducts a legal transaction (e.g., selling property) without knowledge of the principal’s death, the transaction remains valid and binding against the heirs—provided the third party was also unaware of the death.
The objective is to preserve the stability of financial and legal transactions.
Position of Official Authorities in the UAE
Authorities in the UAE apply strict procedures upon death:
- Banks: Once the Emirates ID records are updated to reflect death, access to bank accounts is blocked and all related POAs become ineffective.
- Dubai Land Department: Requires verification that the principal is alive or submission of an inheritance certificate if the transaction occurs after death, unless the POA is legally structured to survive death.
Practical Legal Advice to Avoid Disputes
To prevent legal complications and safeguard rights in the UAE:
- Drafting carefully: Include a clause such as “This POA shall not terminate upon the death of the principal due to the attachment of third-party rights” in real estate and financial POAs when applicable.
- Verify validity: Request a recent certificate confirming the continued validity of the POA before dealing with any agent.
- Financial settlement: The agent must submit a detailed financial report to the heirs immediately upon death to discharge liability.
Frequently Asked Questions
Can heirs cancel a POA after the principal’s death?
An ordinary POA terminates automatically and requires no cancellation. An irrevocable POA generally cannot be revoked by the heirs and remains binding upon them.
May an agent continue acting before learning of the death?
Yes. Transactions concluded before knowledge of death are legally valid in protection of good faith. Authority must cease immediately once the agent becomes aware of the death.
Is the agent automatically discharged upon death?
No. The agent must provide a full account to the heirs and deliver all entrusted documents and assets. Liability remains for any negligence or delay causing damage to the estate.
The death of the principal or agent marks a shift in legal responsibilities. While the law terminates personal authority to protect heirs’ rights, it also preserves safeguards to protect established third-party interests. Achieving balance between these principles requires a clear understanding of the nature of the POA and careful drafting to ensure legal and financial stability for all parties.
Contact us now to protect your legal rights and draft your power of attorney professionally.
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