To revoke a letter of authority, you generally need to issue a formal Revocation Letter and ensure all relevant parties are notified. This process formally terminates the powers granted to an individual or entity.
Understanding a Letter of Authority
A letter of authority (also known as a Power of Attorney or Letter of Authorization) is a legal document that grants one person (the agent or attorney-in-fact) the power to act on behalf of another person (the principal or authorizer) in specific matters. These matters can range from financial transactions and legal decisions to healthcare directives.
Why Revoke a Letter of Authority?
There are various reasons why an authorizer might choose to revoke a letter of authority:
- Change of Circumstances: The original purpose for the authority may no longer exist.
- Loss of Trust: The authorizer may no longer trust the agent to act in their best interest.
- Agent's Inability: The agent may become incapacitated or unwilling to perform their duties.
- Completion of Task: The specific task for which the authority was granted has been completed.
- Legal Requirements: Certain events, like divorce or death, might automatically revoke some types of authority, but formal revocation ensures clarity.
Steps to Revoke a Letter of Authority
Revoking a letter of authority requires a clear and unequivocal statement of intent. Here are the key steps involved:
1. Draft a Formal Revocation Letter
The core of the revocation process is a written document clearly stating your intention to revoke the previous letter of authority. This letter should include:
- Clear Identification: State the full names and addresses of both the authorizer (you) and the agent whose authority is being revoked.
- Reference to Original Document: Clearly identify the original letter of authority being revoked, including its date of execution and any unique identifiers.
- Statement of Revocation: Explicitly state that the previous authority is revoked, canceled, and declared null and void from the date of the revocation letter.
- Scope of Revocation: Specify if all powers are revoked or only certain ones (though a complete revocation is usually simpler and clearer).
- Effective Date: Clearly state the date from which the revocation is effective.
2. Ensure Proper Signing
The Revocation Letter must be signed by the person authorized to act on behalf of the Authorizing Person. This could be, for example, a corporate agent, proctor, empowered person, or a member of the board of directors if the original letter was issued by an organization. The signature should be original and legible.
3. Notarization
If the original Letter of Authorisation was certified by a notary, it is crucial that the signature on the Revocation Letter is also notarized. This adds a layer of legal validity and authenticity, ensuring the revocation is recognized in the same legal context as the original grant of authority.
4. Deliver and Notify All Relevant Parties
For the revocation to be effective, all parties who might rely on the original letter of authority must be formally notified. This includes, but is not limited to:
- The Agent: Send a copy to the individual whose authority is being revoked.
- Financial Institutions: Banks, credit unions, investment firms.
- Healthcare Providers: Doctors, hospitals, pharmacies (for healthcare-related authority).
- Government Agencies: Any government body where the authority was registered or might be used (e.g., property registries, tax authorities).
- Third Parties: Anyone with whom the agent has interacted or might interact using the authority.
Methods of Delivery:
- Certified Mail/Registered Post: Provides proof of delivery.
- Personal Delivery: With a signed acknowledgment of receipt.
- Email: Follow up with a formal written notice.
5. Retrieve Original Documents
If possible, retrieve all original copies of the Letter of Authority from the agent and any third parties. Destroying or marking the original documents as "REVOKED" can prevent future misuse.
Important Considerations
- Legal Advice: It is highly recommended to consult with a legal professional when drafting or revoking a letter of authority. They can ensure the document meets all legal requirements in your jurisdiction and adequately protects your interests.
- Record Keeping: Keep detailed records of the revocation, including copies of the Revocation Letter, proof of delivery, and any acknowledgments of receipt.
- Immediate Action: Act promptly once you decide to revoke an authority to minimize any potential for misuse of the granted powers.
By following these steps, you can effectively revoke a letter of authority, ensuring that the powers granted are formally terminated and all relevant parties are aware of the change.
