An “attorney-in-fact” is a person who is authorised to act on behalf of another person, known as the principal, under a power of attorney (POA) document. This role involves making decisions and taking actions as specified in the POA, which can cover a wide range of matters including financial, legal, and healthcare decisions. Here are some key points about an attorney-in-fact:
- Authorisation: The authority of an attorney-in-fact comes from the power of attorney document, which specifies what actions the attorney-in-fact is allowed to take on behalf of the principal.
- Scope of Power: The power of attorney can be broad or limited. A general power of attorney grants broad powers to handle a wide range of activities, while a specific or limited power of attorney grants authority only for certain tasks or decisions.
- Durable vs. Non-Durable: A durable power of attorney remains in effect even if the principal becomes incapacitated, while a non-durable power of attorney ends if the principal becomes incapacitated.
- Health Care Decisions: A medical or healthcare power of attorney authorises the attorney-in-fact to make healthcare decisions on behalf of the principal, including decisions about medical treatments and end-of-life care.
- Fiduciary Duty: The attorney-in-fact has a fiduciary duty to act in the best interests of the principal, meaning they must act with care, honesty, and loyalty when making decisions on the principal’s behalf.
- Termination: The authority of an attorney-in-fact can be terminated by the principal at any time as long as the principal is competent, or it can terminate upon the principal’s death, the expiration date set in the POA, or by court order.
- Legal Authority: An attorney-in-fact does not have to be an attorney (lawyer). The term simply means someone who has been granted the power to act for another.
e principal’s interests are protected and the actions taken are within the scope of the authority granted.
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