A power of attorney gives someone, called the agent or attorney-in-fact, the authority to act on your behalf. This type of document is just one important facet of estate planning. With a power of attorney for a child, parents give someone else the legal authority to act on their behalf regarding their child's care.May 26, 2021
What is meaning of attorney-in-fact?
An attorney in fact is an agent authorized to act on behalf of another person, but not necessarily authorized to practice law, e.g. a person authorized to act by a power of attorney.
Why do you need an attorney-in-fact?
In finance, the attorney-in-fact is given the power to make payments, cash checks, manage bank accounts, and close accounts if necessary. If you require long-term hospital care, your cable, internet, or phone services may need to be suspended or closed.
What is the difference between attorney and attorney-in-fact?
An attorney in fact is an agent who is authorized to act on behalf of another person but isn't necessarily authorized to practice law. An attorney at law is a lawyer who has been legally qualified to prosecute and defend actions before a court of law.
How does one create an attorney-in-fact?
An attorney-in-fact is designated through the granting of power of attorney, usually by the person who will be represented. Sometimes the courts can assign an individual power of attorney for another person if the latter has become incapacitated.
What's the difference between attorney and lawyer?
Attorney vs Lawyer: Comparing Definitions Lawyers are people who have gone to law school and often may have taken and passed the bar exam. Attorney has French origins, and stems from a word meaning to act on the behalf of others. The term attorney is an abbreviated form of the formal title 'attorney at law'.
What consideration must be given concerning the individual named as attorney-in-fact?
Perhaps the most important considerations, other than how trustworthy the individual is, are how much experience they have and how good they are at managing financial affairs. An attorney-in-fact needs to be able to effectively organize and conduct financial and legal transactions in an orderly and proficient manner.
Who can override a power of attorney?
principalA power of attorney (POA) is a legal contract that gives a person (agent) the ability to act on behalf of someone (principal) and make decisions for them. Short answer: The principal who is still of sound mind can always override a power of attorney.
What is an attorney in fact UK?
A Power of Attorney is a legal document giving one person (called the Agent or Attorney-in-Fact) the power to act for another person (the Principal). The Agent can have either broad legal authority or limited authority to make legal decisions about the principal's property, finances or medical care.
What is the plural of attorney in fact?
noun, plural at·tor·neys-in-fact. Law.
What does AIF mean after a name?
attorney-in-fact.
Who is the principal in a power of attorney?
Introduction. The power of attorney (POA) or letter of attorney is a document that enables one person to represent another in private matters, business contracts, or some other matter on another's behalf. The individual who authorizes the action is referred to as the principal.
What is the meaning of Attorney at Law?
Definition of attorney-at-law : a practitioner in a court of law who is legally qualified to prosecute and defend actions in such court on the retainer of clients.
Understanding The Attorney-In-Fact
There are three types of powers of attorney granted to attorneys-in-fact: general, limited, and special. The general power of attorney grants the attorney-in-fact not only the right to conduct any business and sign any documents on behalf of the principal, but to make decisions, including fin…
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The Powers and Duties of An Attorney-In-Fact
If the attorney-in-fact is designated as a general power of attorney, they are allowed to conduct any actions that the principal would reasonably take. This means an attorney-in-fact would be able to open and close bank accounts, withdraw funds, trade stocks, pay bills, or cash checks—all on behalf of the principal. Under a limited power of attorney, the attorney-in-fact is granted broad powers in one area but not in others. For example, the att…
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Durable Power of Attorney
A power of attorney ends when a person becomes incapacitated unless the power of attorney is designated as a durable power of attorney. In the latter case, the attorney-in-fact can retains the power of attorney and can make decisions for the principal, including matters of finance and health care. Durable power of attorney can also be granted ahead of time, on condition that it takes effect only when the principal becomes incapacitated.
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Definition of Attorney-In-Fact
What Is An Attorney-In-Fact
An attorney-in-fact is a person authorized to conduct transactions, or to handle other matters, on behalf of another person. The person naming someone else to act as an agent on his behalf, referred to as the “principal,” not only names his attorney-in-fact in a power of attorney document, but also specifies the scope of authority the agent has. An...
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Duties of An Attorney-In-Fact
The duties of an attorney-in-fact vary, depending on the specifics of the power of attorney document. Most commonly, duties of an attorney-in-fact entail taking care of the principal’s financial affairs. In the case of a broad power of attorney document, such duties may allow the attorney-in-fact to step into the role of the principal to undertake whatever banking, investment, or other matters may be needed. These activities may include opening …
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Liability of Attorney-In-Fact
An attorney-in-fact can be held liable if he willfully acts in a manner that is not in the best interest of the principal. He may also be held liable if he acts with gross negligence, causing damages to the principal. In either case, the principal may seek payment by filing a civil lawsuitagainst the attorney-in-fact. In a case where the attorney-in-fact acts deliberately to defraud or otherwise harm the principal, he may face criminal charges as well.
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Qualifications of An Attorney-In-Fact
In most jurisdictions, there are no required qualifications of an attorney-in-fact. The designated individual must be of legal age, and be capable of performing the duties specified in the power of attorney. While it is common for people to name an attorney as their attorney-in-fact, it is by no means required. In fact, as an estate planning tool, many people name relatives or close friends to fill the role of attorney-in-fact in the event they become incapacit…
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Reasons For Designating An Attorney-In-Fact
What Is A Healthcare Attorney-In-Fact
While a general power of attorney gives a named attorney-in-fact authority to transact business on the principal’s behalf, a healthcare power of attorney gives an attorney-in-fact authority to make medical decisions. It is possible to include such a section in a general power of attorney, but it is highly recommended that a healthcare power of attorney be created as a separate document altogether. In a healthcare power of attorney, the principal can spec…
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Real Life Attorney-In-Fact Abuse of Powers
In 1997, Viola and Clyde Copas signed a power of attorney appointing their son, “RC,” as attorney-in-fact, and giving him unrestricted authority to act on their behalf. Clyde passed away in 1998, Viola passed away in 2005. Immediately following his mother’s death, RC was appointed the Personal Representative of the estate. RC’s two siblings found that, as attorney-in-fact and executor of the estate, he had mishandled their parents’ affairs, sipho…
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Related Legal Terms and Issues
- Authority– The right or power to make decisions, to give orders, or to control something or someone.
- Civil Lawsuit– A lawsuit brought about in court when one person claims to have suffered a loss due to the actions of another person.
- Fiduciary– A person to whom power, property, or assets have been entrusted for the benefit of another.
- Incapacitated– To be unable to act or respond.
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