The Shocking Truth About Your Overseas Kid's Money: Get Ready to Unlock the Secret

Are you a parent of an NRI child? If so, you need to know about a crucial instrument that grants you the power to manage their finances while ensuring compliance with FEMA regulations and ensuring their financial protection and peace of mind for you.

As an NRI (Non-Resident Indian), your child's money matters. A Power of Attorney (PoA) can be your most trusted ally in managing their money while they are away.

A Power of Attorney (PoA) is a written document where an NRI authorizes another individual to perform tasks and make important financial decisions on their behalf.

A valid PoA has several benefits, particularly when it comes to managing financial matters:

• Legal Authority: It allows you to act on your child's behalf, and deal with financial institutions in their capacity as an NRI. You get the authority to conduct their financial matters legally.
• Freedom to Manage Finances: You get complete control over their bank accounts, assets, and other financial deals.
• Ensure FEMA Compliance: With a PoA, you can fulfill specific FEMA requirements, such as annual reporting, tax filing, and repatriation of funds, among others, to avoid any consequences of non-compliance.

As a parent, you want to ensure your child's financial protection in their absence. FEMA requires certain documentation that ensures compliance. Failure to comply with these laws can result in fines and penalties.

With the right power of attorney, however, managing your child's finances becomes quite straightforward. To obtain a valid PoA, you must follow this particular process:

• The NRI child must execute the PoA while they are on foreign soil, signifying their capacity for decision-making by demonstrating their mental capacity.
• The Power of Attorney form needs to be stamped (with an extra small seal made out of leather and copper 'if PoA is general'.
• The grantor must sign (executor of original in front of the notary public consulate) and/or endorse their right-hand thumb mark.
• The seal gets broken, and the signature verified in front of three witnesses, two who verify notary verification before inking or 'then of the both verifying notary witness, including one notary public'.

Executing the PoA might be full of complexities and formalities, but remember, your child's finances depend on your adherence to these requirements. You must strive to complete the execution according to legal terms because every small detail matters.

Be sure to choose the proper means of executing your child's Power of Attorney to secure their hard-earned money and secure your future as well.