who is the agent in power of attorney

The attorney-in-fact, also known as the agent, is the person you choose to make decisions with a POA. The POA loses its power when you die. At that point, whoever is appointed as your executor or personal representative in your will takes over managing the estate and handling affairs.

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What are the duties of an agent under a power of attorney?

Agent The person designated to be the agent assumes certain responsibilities. First and foremost, the agent is obligated to act in the principal’s best interest. The agent must always follow the principal’s directions. Agents are “fiduciaries,” which means that the agent must act with the highest degree of good faith in behalf of their principals.

How does an agent use a power of attorney?

Nov 25, 2003 · 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...

What can a power of attorney agent do?

Mar 06, 2015 · The “agent” is the person who is given the power to act on behalf of the principal. The principal should select an agent who they trust to handle their financial affairs. An agent has a responsibility to follow the provisions of the POA, act …

Who is the agent in a power of attorney?

Jul 28, 2021 · The agent under your Power of Attorney is a Very Important Person. Their job is to make your financial decisions in the event you are unable to make your own financial decisions because of an incapacity or otherwise. Your agent may be the person who has to pay your bills in the event of your absence or your incapacity, make financial decisions and/or transactions, …

When should a power of attorney be considered?

A power of attorney should be considered when planning for long-term care. There are different types of POAs that fall under either a general power of attorney or limited power of attorney . A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state.

How to start a power of attorney?

A better way to start the process of establishing a power of attorney is by locating an attorney who specializes in family law in your state. If attorney's fees are more than you can afford, legal services offices staffed with credentialed attorneys exist in virtually every part of the United States.

Why do parents need POAs?

Ask parents to create POAs for the sake of everyone in the family—including the children and grandchildren— who may be harmed by the complications and costs that result if a parent is incapacitated without a durable POA in place to manage the parent’s affairs.

Why does a power of attorney end?

A power of attorney can end for a number of reasons, such as when the principal dies, the principal revokes it, a court invalidates it, the principal divorces their spouse, who happens to be the agent, or the agent can no longer carry out the outlined responsibilities. Conventional POAs lapse when the creator becomes incapacitated.

What is the name of the person who gives the POA?

The term for the person granting the POA is the "principal." The individual who receives the power of attorney is called either the "agent" or the "attorney-in-fact." Check whether your state requires that you use specific terminology.

What is a limited power of attorney?

A limited power of attorney gives the agent the power to act on behalf of the principal in specific matters or events. For example, the limited POA may explicitly state that the agent is only allowed to manage the principal's retirement accounts.

How long is a limited power of attorney good for?

A limited power of attorney may be in effect for a specific period. For example, if the principal will be out of the country for two years, the authorization might be effective only for that period.

How to choose an agent for a power of attorney?

When choosing an agent under your Power of Attorney, do not be limited by geographic location, age, or relationship. An agent can be anyone, of any age, anywhere. With today’s technology, many financial decisions/transactions can be performed via email, telephone, fax, or by the mail/overnight delivery, so where a person lives has little to do with whether or not they can do a good job. And, age should never be a factor in ruling someone out as a possible agent. The question is whether that person can do the job. But, if you are concerned about the age of the potential agent (assuming the person is older), then make sure you appoint successor (s) to act if necessary.

Can you appoint an additional agent under a power of attorney?

No matter who you appoint, in addition to the appointment of your agent under your Power of Attorney, you should consider naming additional agents (as successor (s)) in the event the initial agent is unable or unwilling to do the job.

Who can you grant power of attorney to?

Only grant power of attorney to someone you trust to take the responsibility seriously.

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.

Why is a power of attorney important?

Power of attorney is essential in the event that you're incapacitated or not physically present to make decisions on your own behalf. Learn more in our in-depth guide.

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 ...

When do POAs take effect?

Some POAs take effect immediately after they're signed, and others only kick in after you're incapacitated.

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 ...

Is a power of attorney binding?

No power of attorney document is legally binding before it's signed and executed according to the laws of your state. This means that no agent can make decisions on your behalf before the POA document goes into effect. You must also be of sound mind when you appoint an agent. You can view more about the creation of a power of attorney in the infographic below.

Why do people name their kids as power of attorney?

Oftentimes people want to name two of their children as power of attorney co-agents solely due to the fact that they do not want to hurt one of their children’s feelings. They are afraid that if they name one of their kids as the sole first choice as their agent and make their other kid ‘only’ their backup, then the one named as a backup is going ...

What happens if you force co-agents to work together?

If you choose to force the co-agents to work together on every decision, then that can prevent one co-agent from doing something the other co-agent disagrees with. That of course can be a good thing, but it also can lead to important matters not getting taken care of.

Can you name co-agents in a power of attorney?

In 2017 the Texas legislature passed the Texas Durable Power of Attorney Act which specifically addressed the ability to name co-agents in a power of attorney document. The form even gives you the ability to say whether the agents can act independently or if they must act together. But just because the law lets you create co-agents doesn’t mean ...

Can a co-agent get along?

But when you are considering creating co-agents, you also need to be very confident that your co-agents can get along and stay on the same page as they perform their duties. This is where major problems can potentially arise, even if, or perhaps especially if, the co-agents are siblings. If they don’t get along and/ or they have very different opinions about how your financial affairs should be handled, then it could become a big fight which eventually must be settled in court. If this were to happen, then the power of attorney could possibly end up causing more problems than it solved. That only happens in extreme situations, but it is definitely something to keep in mind when choosing co-agents.

Can a person make their kids co-agents?

Well, that may actually be the case, especially if they don’t have open conversations with their children about their estate planning goals. But that should not be the only reason a person makes their kids co-agents. In 2017 the Texas legislature passed the Texas Durable Power of Attorney Act which specifically addressed ...

Can co-agents act independently?

And choosing whether the co-agents can act independently or whether they must act together is also a big decision. There can be positives and negatives to each of those choices. It certainly makes it easier to act and get stuff done if they can act independently.