Attorney-in-Fact: Meaning, Types and FAQs

In U.S. law, an attorney-in-fact is someone chosen to help with legal or financial matters by another person who might need assistance. The attorney-in-fact is given special powers through a document called a power of attorney.

This article will help you understand what an attorney-in-fact and power of attorney is. We’ll explain what they do, the different types you might encounter, and answer some common questions people have about them.

What is Attorney-in-Fact?

An attorney-in-fact is a person chosen to manage someone else’s legal or financial matters. This role is given through a legal paper called a Power of Attorney (POA). The person who gives this power is called the principal, while the one who gets it is the attorney-in-fact. Essentially, the attorney-in-fact acts as a representative for the principal, making decisions and taking actions for them.

This might include handling money, signing papers, or making healthcare choices, depending on what the POA says. The attorney-in-fact has to do what’s best for the principal and follow any instructions in the POA. Understanding what an attorney-in-fact does is important to make sure people who need help with their affairs have someone reliable to help them out.

Key Takeaways:

• In law, an attorney-in-fact is someone who represents another person’s interests.
• This is important when someone needs help with legal or financial matters but can’t do it alone.
• To give this authority, a person makes a legal document called a Power of Attorney (POA).
• The person giving authority is the “principal,” and the person receiving it is the attorney-in-fact, also known as the agent.

What is Power of Attorney?

A Power of Attorney (POA) is a legal paper that lets someone else make choices and do things for you. Here is a brief understanding of the term ‘Power of Attorney’:

1. Giving Permission: When you make a power of attorney, you’re giving someone else (called the “agent”) the right to make decisions and take actions for you on your behalf. This could be about money, property, medical stuff, or legal matters. How much power the agent gets depends on what kind of power of attorney you make and what you say in the paper.

2. Different Types: There are different types of power of attorney for different needs:

• General Power of Attorney: Gives the agent a lot of power to handle your stuff. This is handy for short-term situations, like when you’re traveling and need someone to pay your bills.
• Durable Power of Attorney: Stays in effect even if you can’t make decisions anymore. This is important for planning ahead and making sure someone can look after your affairs if you can’t.
• Medical Power of Attorney: Lets someone make healthcare decisions for you if you can’t. This includes choices related to medical treatment and care.
• Limited Power of Attorney: Gives the agent specific powers for a certain purpose, like selling your house while you’re away.

3. Ending the Power of Attorney: You can cancel a power of attorney whenever you want, as long as you’re mentally able to. You can do this by telling the agent in writing or making a new power of attorney that says the old one is over. It’s important to keep your power of attorney papers up to date and cancel them if your situation changes.

Types of Power of Attorney

Knowing the different types of power of attorney (POA) is important for ensuring that your legal and financial matters are handled correctly.

1. General Power of Attorney

• A general power of attorney gives broad authority to the person you choose (called the “agent”) to manage various aspects of your life on your behalf. This includes handling your finances, signing legal documents, and making decisions for you.
• It’s usually used for short-term situations when you need someone to act for you temporarily, like when you’re traveling or unable to handle your affairs for a brief period.
• However, it’s crucial to know that a general POA becomes invalid if you are unable to make decisions for yourself, so it’s not suitable for long-term planning.

2. Durable Power of Attorney

• A durable power of attorney remains effective even if you become incapacitated and can’t make decisions anymore. This makes it valuable for long-term planning and ensures that someone can continue to manage your affairs if needed.
• Unlike a general POA, a durable one specifically states that it remains valid if you’re unable to make decisions.
• With a durable POA, the person you choose has the authority to act on your behalf for an extended period, providing peace of mind knowing your affairs are in good hands.

3. Medical Power of Attorney

• A medical power of attorney, also known as a healthcare proxy, allows you to appoint someone to make healthcare decisions for you if you’re unable to do so. This includes decisions about treatment, surgery, and end-of-life care.
• It’s crucial to choose someone you trust as your medical agent, someone who understands your wishes and will advocate for you in medical situations.
• Discussing your healthcare preferences with your medical agent ensures they know what decisions to make on your behalf.

4. Limited Power of Attorney

• A limited power of attorney gives specific powers to the agent for a particular purpose or transaction, rather than broad authority.
• It’s used for specific tasks, like selling property, managing investments, or handling a single financial transaction.
• Once the task is complete, the limited POA ends automatically, and the agent’s authority is no longer valid.

Understanding these different types of power of attorney helps you choose the right one for your needs. Whether you need someone to handle your affairs temporarily, make healthcare decisions for you, or manage your finances in the long term, selecting the appropriate type ensures your interests are protected and your wishes are respected.

Conclusion

An attorney-in-fact is a person designated to make decisions on behalf of someone else in legal or financial matters. There are two main types: general and limited. A general attorney-in-fact can handle a broad range of decisions, while a limited one is appointed for specific tasks or periods. They act based on a power of attorney document signed by the person granting them authority.

Attorney-in-Fact – FAQs

Can I choose more than one person as my attorney-in-fact?

Yes, you can pick more than one person. They can act together (jointly) or separately (severally).

Can I cancel a power of attorney if I change my mind?

Yes, you can. You just need to sign a paper saying you don’t want it anymore and give copies to your agent and others involved.

What if I can’t make decisions and don’t have a power of attorney?

In that case, a court might choose someone to make decisions for you. This can be costly and may not match what you want.

Can my attorney-in-fact do things I don’t want?

No, they’re supposed to act in your best interest and follow your wishes. If they don’t, they could get in trouble.

Is a lawyer needed to make a power of attorney?

You don’t have to, but it can help make sure everything’s done right. A lawyer can also give advice on what type of power of attorney you need and who to choose as your attorney-in-fact.

Reference:

• Utah State Courts
• HG.org Legal Resources
• New York State Unified Court System

Note: The information provided is sourced from various websites and collected data; if discrepancies are identified, kindly reach out to us through comments for prompt correction.