what is the person with a power of attorney called?

Power of attorney (POA

) is a legal authorization that gives a designated person, termed the agent or attorney-in-fact, the power to act for another person, known as the principal. The agent may be given broad or limited authority to make decisions about the principal's property, finances, investments, or medical care. Key Takeaways

Full Answer

What do you call someone who is your power of attorney?

You can give someone the legal authority to act for you with a document called a Power of Attorney. If you give a Power of Attorney, you are called the principal and the person you give it to is called the agent or the attorney-in-fact.

What are Poas?

A power of attorney (POA) is a legal document that gives an individual, called the agent or attorney-in-fact, the authority to take action on behalf of someone else, called the principal.

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.

Can two siblings have power of attorney?

Generally speaking, while it is good to include your spouse or siblings, consider the fact that they may not be around or have the inclination to sort out your wishes when the time comes. If possible, include two attorneys as standard and a third as a back-up should one of the attorneys not be able to act.

What is an attorney in fact?

What is an Attorney-in-Fact. In some jurisdictions, the individual given authority to act on behalf of the principal is called an “attorney-in-fact.”. An attorney-in-fact is not an attorney in a legal sense, but acts as the principal’s agent. When an attorney-in-fact is appointed, he has a fiduciary duty to be completely honest in his dealings ...

What powers does Enid have?

Enid, with the help of her attorney, created a spring power of attorney, giving authority to her sister to handle all of her personal and financial affairs in the event she becomes incapacitated. Enid’s sister has no authority to act until her sister is unable to handle her affairs herself. Three years later, Enid is involved in a car accident that leaves her with a serious head injury, rendering her incapable of making decisions and acting on her own behalf. At this time, Enid’s power of attorney “springs” into effect, enabling her sister to act on her behalf.

What does "authority" mean in legal terms?

Noun. The authority given to a person or entity to act on behalf of another person or entity in legal or financial matters. A legal document giving one person or entity to act on behalf of another person or entity in legal, financial, or personal matters.

What happened to Terri Schiavo?

In 1990, a woman named Terri Schiavo had a heart attack, which deprived her brain of needed oxygen. This left her in a waking coma, unable to care for herself in any way. In fact, Terri received nutrition and water through a feeding tube inserted into her stomach.

What happens to John's power of attorney?

John suffers a stroke, leaving him unable to deal with his own financial affairs, at which time Edward begins serving as his agent. Four years later, Edward passes away, and there is no successor attorney-in-fact named in John’s power of attorney document. Because John is now unable to alter or amend this legal document, the power of attorney is simply terminated.

What is a legal entity?

A legal entity is able to enter into contracts, take on obligations, pay debts, be sued, and be held responsible for its actions. Grantor – A person that creates a will, trust, or power of attorney. Incapacitated – To be unable to act or respond.

What is a power of attorney?

Power of attorney refers to the granting of authority to one individual to make decisions for, and to act on behalf of, another individual. Power of attorney maybe granted for a wide variety of situations, and may be assigned for one specific purpose, or to allow the individual given power of attorney to handle all of the principle’s personal and financial affairs. The laws governing power of attorney vary by jurisdiction. To explore this concept, consider the following power of attorney definition.

What is a power of attorney?

A power of attorney is a document that lets you name someone to make decisions on your behalf. This appointment can take effect immediately if you become unable to make those decisions on your own.

What is a POA?

A power of attorney (POA) is a document that allows you to appoint a person or organization to manage your property, financial, or medical affairs if you become unable to do so.

What is a power of attorney for health care?

A health care power of attorney grants your agent authority to make medical decisions for you if you are unconscious, mentally incompetent, or otherwise unable to make decisions on your own. While not the same thing as a living will, many states allow you to include your preference about being kept on life support.

What to do if your power of attorney is not able to determine mental competency?

If you think your mental capability may be questioned, have a doctor verify it in writing. If your power of attorney doesn't specify requirements for determining mental competency, your agent will still need a written doctor's confirmation of your incompetence in order to do business on your behalf. A court may even be required to decide the ...

What happens if you can't review updates?

If you are unable to review updates yourself, direct your agent to give an account to a third party. As for legal liability, an agent is held responsible only for intentional misconduct, not for unknowingly doing something wrong. This protection is included in power of attorney documents to encourage people to accept agent responsibilities.

Why do you need multiple agents?

Multiple agents can ensure more sound decisions, acting as checks and balances against one another. The downside is that multiple agents can disagree and one person's schedule can potentially delay important transactions or signings of legal documents. If you appoint only one agent, have a backup.

What is the best way to choose a power of attorney?

Trust is a key factor when choosing an agent for your power of attorney. Whether the agent selected is a friend, relative, organization, or attorney, you need someone who will look out for your best interests, respect your wishes, and won't abuse the powers granted to him or her. It is important for an agent to keep accurate records ...

What happens to a power of attorney when the grantor dies?

Under the common law, a power of attorney becomes ineffective if its grantor dies or becomes "incapacitated," meaning unable to grant such a power, because of physical injury or mental illness, for example, unless the grantor (or principal) specifies that the power of attorney will continue to be effective even if the grantor becomes incapacitated. This type of power of attorney is called "power of attorney with durable provisions" in the United States or " enduring power of attorney ", "lasting" or "continuing" power of attorney elsewhere. In effect, under a durable power of attorney, the authority of the attorney-in-fact to act and/or make decisions on behalf of the grantor continues until the grantor's death.

What is a health care proxy?

The grantor can typically modify or restrict the powers of the agent to make end-of-life decisions. In many jurisdictions a health care power of attorney is also referred to as a " health care proxy " and, as such, the two terms are sometimes used interchangeably.

What happens if you don't have a power of attorney?

If a person does not have the capacity to execute a power of attorney (and does not already have a durable power in place), often the only way for another party to act on their behalf is to have a court impose a conservatorship or a guardianship .

What is a special power of attorney?

A special power of attorney is one that is limited to a specified act or type of act. A general power of attorney is one that allows the agent to make all personal and business decisions A temporary power of attorney is one with a limited time frame.

What is equal dignity?

The equal dignity rule is a principle of law that requires an authorization for someone performing certain acts for another person to have been appointed with the same formality as required for the act the representative is going to perform. This means, for example, that if a principal authorizes someone to sell the principal's house or other real property, and the law requires a contract for the sale of real property to be in writing (which is required under the Statute of Frauds in most U.S. jurisdictions), then the authorization for the other person to sign the sales contract and deed must be in writing too. Likewise, in common-law jurisdictions other than the U.S., a power of an attorney to execute a deed (i.e. instrument under seal or executed in presence of two witnesses) must be itself executed as a deed.

What is an attorney in fact?

Attorney-in-fact. The term attorney-in-fact is used in many jurisdictions instead of the term agent. That term should be distinguished from the term attorney-at-law. In the United States, an attorney-at-law is a solicitor who is also licensed to be an advocate in a particular jurisdiction.

What is a POA?

Power of attorney. A power of attorney ( POA) or letter of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter. The person authorizing the other to act is the principal, grantor, or donor (of the power). The one authorized to act is the agent, attorney, ...

What is a POA in real estate?

This type of POA is often called a financial power of attorney because it’s commonly used for day-to-day financial matters.

How does a power of attorney work?

Here’s how power of attorney works: First, the principal chooses one or more people they trust to manage their affairs. All parties sign and date a power of attorney form, which describes the duration of the power of attorney, and the type of authority granted. The form can be edited to:

What is a POA?

Often abbreviated as a “POA”, a power of attorney is used to appoint someone to manage your financial or business affairs when you’re unable to. To have someone to make health care decisions for you, you can use a variation of this form called a medical power of attorney. Before you create a power of attorney, it’s crucial to understand ...

Why is it important to give someone a power of attorney?

Giving someone power of attorney is one of the most important legal decisions you can make, because it grants the other person significant authority over your life. An agent has a “fiduciary duty” to the principal to act in their best interests — which means they have a legal obligation to do what’s best for them.

What can an elderly person do with a power of attorney?

Here are some uses of a power of attorney, and what it allows you do: Estate planning: an elderly person may choose an adult child or loved one to make important decisions about their money or health, in order to plan for a time when they cannot make these choices themselves.

What is the principal of a power of attorney?

The principal is the person who needs to have decisions made for them. They typically create the power of attorney, and choose which person will represent them. The principal is sometimes called the “grantor.”

How to avoid risk with power of attorney?

The best way to avoid risk with a power of attorney is to choose the right agent. Remember that you can choose multiple agents for different tasks, and assign responsibilities based on the agents’ strengths and character.

Learn the ins and outs of creating a POA and choosing an agent

A power of attorney (POA) is a simple document that gives someone you trust the power to act on your behalf. The person you allow to step into your shoes is called an "attorney-in-fact"—or "agent," in some states.

What Type of POA Should I Make?

Power of attorneys can address a variety of situations. You can create a POA for a single transaction (for example, authorizing your brother to sell your car for you while you're out of town) or a long-term, "durable" one that will allow someone to handle your financial or health matters if you ever become incapacitated.

How Do I Choose an Agent or Attorney-in-Fact?

For a financial power of attorney, usually any competent adult can serve as your agent. This person need not be a financial expert, but certainly you'll want to choose someone who has a good dose of common sense, and whom you trust completely. In addition, consider these factors:

How Do I Create a POA?

You can make your own power of attorney, but your document needs to be valid in your particular state because each state has its own set of requirements. The good news is that state-specific power of attorney forms are readily available, either from your state government or through guided software programs such as Nolo's Willmaker.

When Does a Power of Attorney Begin and End?

If you made a durable financial power of attorney (the most common POAs made as part of an estate plan), the document usually goes into effect immediately after you've signed it and had it witnessed or notarized. In practice, of course, you can instruct your agent not to use the POA until you are incapacitated.

Can You Help a Loved One Make a POA?

You can nudge or help your loved ones to create their own POA; people often find themselves helping their elderly parents with these documents. Be aware that the person you're helping must have the mental capacity to understand generally what the POA is and what it does. See Helping an Elder Make a Power of Attorney for a more in-depth discussion.

How many witnesses do you need to sign a power of attorney in Florida?

In order to be properly executed, the Power of Attorney needs to be signed by the principal and two witnesses to the principal’s signature. A notary also has to acknowledge the principal’s signature for the Power of Attorney to be valid under Florida law.

What is a third party witness?

They do not have any power conferred upon them. Third party. A third party is often referred to as the person or institution the agent deals with on behalf ...

Why is a power of attorney important?

A Power of Attorney can be an incredibly powerful instrument, so it’s essential you fully understand the legal rights you’re giving to someone else.

What is an agent in fact?

The agent or attorney-in-fact. The agent – also called the attorney-in-fact – is the entity given the power to act on the principal’s behalf. Anyone who is at least 18 years old and deemed legally competent can be an agent. Certain financial institutions with trust powers can also be agents.

Who can be a third party?

A third party could be a bank, broker, property buyer, insurance agent, or anyone the principal grants the agent power to deal with. As long as the Power of Attorney is valid, a third party generally must honor the document. Attorney. Since a Power of Attorney grants another person so much power, an experienced attorney should be ...

Can a trust be an agent?

Certain financial institutions with trust powers can also be agents. When deciding on an agent for a Power of Attorney, you want to choose the best possible entity for your needs. Some agents are better at handling certain tasks than others.

What is a POA in healthcare?

A medical POA, or durable power of attorney for healthcare decisions, or health care proxy, is both a durable and a springing POA . The springing aspect means that the POA takes effect only if specific conditions take place.

How long does a durable POA last?

A durable POA begins when it is signed but stays in effect for a lifetime unless you initiate the cancellation. Words in the document should specify that your agent's power should stay in effect even if you become incapacitated. Durable POAs are popular because the agent can manage affairs easily and inexpensively.

How does a POA work?

How a Power of Attorney (POA) Works. Certain circumstances may trigger the desire for a power of attorney (POA) for someone over the age of 18. For example, someone in the military might create a POA before deploying overseas so that another person can act on their behalf should they become incapacitated.

What is a POA in 2021?

A power of attorney (POA) is a legal document in which the principal (you) designates another person (called the agent or attorney-in-fact) to act on your behalf. The document authorizes the agent to make either a limited or broader set of decisions. The term "power of attorney" can also refer to the individual designated ...

How to get a POA?

How to Get a Power of Attorney (POA) The first thing to do if you want a power of attorney is to select someone you trust to handle your affairs if and when you cannot. Then you must decide what the agent can do on your behalf, and in what circumstances. For example, you could establish a POA that only happens when you are no longer capable ...

What happens if you have a POA?

If you have a POA and become unable to act on your own behalf due to mental or physical incapacity, your agent or attorney-in-fact may be called upon to make financial decisions to ensure your well-being and care.

What is a limited power of attorney?

It could be something very specific, like giving your attorney the power to sign a deed of sale for your house while you're on a trip around the world. This is called a "limited power of attorney" and it can be quite common in everyday life.

Estate Planning Documents

When a person creates an estate plan, their attorney will usually recommend that they execute several documents at the same time, so that they have complete protection. These usually include a will, a health care advance directive, and a power of attorney. A living trust might also be included.

The Role of an Executor

A last will and testament is a document that directs how a person’s (called the testator) belongings and assets will be distributed after their death. The will names beneficiaries, the people who will receive those bequests. Someone has to actually carry out the testator’s directions and ensure that the beneficiaries receive their bequests.

The Role of an Attorney-in-Fact

A power of attorney is a document that is valid only during the life of the principal (the person creating it). It gives authority to another person, called the attorney-in-fact (some states call this an agent), to make financial or business decisions for the principal.

About Author

Brette Sember is a former attorney and author of books including The Complete Divorce Guide, The Complete Divorce Organizer & Planner, and The Empty Nest Financial Guide. Her website is BretteSember.com.

Overview

Types

A power of attorney may be: special (also called limited), general, or temporary. A special power of attorney is one that is limited to a specified act or type of act. A general power of attorney is one that allows the agent to make all personal and business decisions A temporary power of attorney is one with a limited time frame. If ever required, a durable power of attorney can be revoked or changed as long as the principal is still mentally competent to act.

Attorney-in-fact

Structure and requirements

Implied limitations on agent's power

Specialized uses

Legal status by country

See also