POAs Involving Minors and Dependents: Guardianship, Not Standard POA Work

Welcome back to the POA's desk.

In the last episode we covered substitution clauses. In this episode we cover POAs involving minors and dependents — situations where a child or other dependent is part of the POA arrangement, and the specific requirements that apply.

This is one of the more sensitive areas of POA work. The UAE has clear rules protecting minors and dependents, and POAs that involve them are subject to additional scrutiny. The basic principle is that minors cannot grant POAs themselves, and POAs that affect a minor's interests typically require court involvement or specific guardianship documentation.

The basic rules

A minor — defined under UAE law as a person under 21 years of age — cannot grant a POA in their own name. They lack the legal capacity to authorise someone to act on their behalf. So a POA cannot be issued by a 17-year-old, even with parental consent. The legal relationship is different.

A minor's affairs are handled by their guardian. For most children, this is one or both parents. For children whose parents have passed away, this is whoever has been appointed as guardian by the court or designated in a recognised will. The guardian acts on behalf of the minor and can issue POAs in the minor's interest, but those POAs are typically subject to additional restrictions.

Common scenarios

A common scenario. A parent owns a property jointly with their minor child — perhaps inherited from the other parent. The parent wants to sell the property. The parent's signature alone is not enough; the minor's share must also be properly handled. Depending on the situation, this may require court authorisation for the sale, or a specific guardianship document allowing the parent to act on behalf of the minor.

Another scenario. A family wants to gift property to a minor child. The gift is being made by an adult relative. The minor cannot accept the gift directly because they lack legal capacity. The gift must be received by the minor's guardian on their behalf, with documentation showing the guardian's authority and confirming the minor as the ultimate owner.

A third scenario. A guardian needs to authorise someone in Dubai to handle matters relating to a minor's UAE asset. This is not a standard POA. It is a guardianship-based authorisation, and it requires the guardianship documentation to be presented alongside any POA-like document.

Why the authorities are protective

The Dubai Land Department and other authorities take protective approaches in these scenarios. They will not transfer property out of a minor's name without confirming that the transaction is in the minor's interest. They will not allow funds to be paid to anyone other than for the minor's benefit. Court oversight is sometimes required.

Specific situations we handle

Inheritance involving minor heirs. When children inherit a share of an estate, their share must be handled separately. A guardian acts on the minor's behalf, but typically with court oversight. The POA equivalent is a guardianship authorisation, which has its own format and requirements.

Cross-border situations involving minors. A minor child holding a UAE asset from another country requires careful handling. The home country's guardianship rules and the UAE's rules must both be respected. We coordinate with family lawyers in the home country where needed.

Adult dependents with reduced capacity. A POA can be issued by an adult who has legal capacity, even if they are dependent on others for daily care. But if the adult has lost legal capacity — for example through dementia or other incapacity — they cannot issue a POA. A guardianship arrangement is needed instead, which is a court-supervised process, not a POA.

Common mistakes

A common mistake we see. Families try to use a parent's general POA to handle a minor child's specific assets. This often fails. The general POA authorises the parent to act on their own behalf. It does not authorise them to act on behalf of the child. A separate document, with proper guardianship references, is needed.

Another common mistake. Families wait until a minor is involved in a transaction before addressing the documentation. By then the transaction is under time pressure. We recommend handling guardianship documentation in advance for any family that owns assets jointly with minor children.

A more serious concern

Some families try to circumvent minor protections by drafting POAs that effectively transfer the minor's assets without proper court oversight. These attempts are often detected by the receiving authority and result in the transaction being blocked. They can also create legal exposure for the adults involved. We do not draft documents that attempt to circumvent these protections.

At POAS we approach minor-related POAs as guardianship work, not standard POA work. The fee structure is different because the documentation is more complex. The process involves verifying guardianship status, confirming the relevant court orders, drafting documents that respect the minor's protections, and coordinating with family lawyers where needed.

In Episode 23 we cover specific powers versus general powers — the trade-off between detailed authorisation and broad authorisation.

I'm Patrick. Thanks for joining me at the POA's desk.