Document Type

Book Chapter

Publication Date

4-25-2025

Keywords

power of attorney, law, legal

Disciplines

Developmental Psychology | Law

Abstract

A power of attorney is a written document that authorizes an individual (an “agent” or “attorney-in-fact”) to act on behalf of another individual (the “principal”) in a fiduciary capacity related to matters specified within the power of attorney document. The agent does not have to be a licensed attorney in order to assume the role as agent, but must act with care and in good faith when dealing with the principal’s affairs. An agent’s power can be limited to a specific transaction, such as purchasing a specified piece of real estate, or the agent can be authorized to complete various tasks (“general powers”) such as entering into contracts, signing tax returns, or managing bank accounts. However, certain acts are prohibited by statute from being delegated to an agent, such as making or revoking a will. Statutes in some states require that certain acts of an agent be specifically stated—for example, changing beneficiary designations or consenting to an autopsy. Further, the agent is limited to acting only within the scope designated in the document. In addition, the agent’s power ends when the acts specified in the document have been fulfilled. For example, if the power of attorney document identifies the sale of a piece of real estate as the act the agent is authorized to conduct, once that occurs, the power granted to the agent terminates. The power granted to the agent can be revoked by the principal at any time. Further, even when an agent is assigned, the principal is still able to transact business on his or her own behalf.

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