An Attorney-in-Fact (also known as an Agent) is an individual you appoint to act on your behalf to manage financial matters and carry out specific tasks under a legal document, such as a Power of Attorney. This role does not require the person to be a licensed attorney or legal professional.
Responsibilities of an Attorney-in-Fact
The Attorney-in-Fact is authorized to make financial decisions and perform transactions on your behalf, as outlined in the Power of Attorney document. Their responsibilities may include:
Paying Bills: Writing and signing checks to cover expenses.
Managing Real Estate: Buying, selling, or leasing property.
Handling Investments: Voting stocks, trading securities, or managing investment portfolios.
Banking Transactions: Depositing or withdrawing funds from bank accounts.
Applying for Benefits: Filing applications for government benefits, such as Social Security.
Qualifications for an Attorney-in-Fact
When choosing an Attorney-in-Fact, it’s essential to select someone who is:
Trustworthy: They will have significant authority over your finances.
Financially Responsible: They should have the skills to manage money and transactions effectively.
Available and Willing: They must be willing to take on the responsibility and be available to act when needed.
Important Considerations
Fiduciary Duty: The Attorney-in-Fact is legally obligated to act in your best interest and manage your affairs prudently.
Termination of Authority: The authority of an Attorney-in-Fact ends when the Power of Attorney document specifies, or upon your death. In the case of a Durable Power of Attorney, their authority remains active even if you become incapacitated.
An Attorney-in-Fact plays a critical role in ensuring your financial affairs are managed smoothly, especially in times when you are unable to handle them personally. Make sure to discuss your expectations and their responsibilities before appointing someone to this role.