Agent for a Power of Attorney

In this document, you have been named as an “Agent” or the“attorney-in-fact”. The person who created the Power of Attorney (“POA”) is often called the “Principal”. But what is a Power of Attorney? A Power of Attorney is a document that gives another person full or sometimes limited legal authority to sign on behalf of another person regarding asset management. 

More specifically, the purpose of this document is to give the person designated (the “Agent”) broad powers, which may include, the power to handle property, sell, dispose of, or encumber any real estate or tangible personal property without advance notice or approval by the Principal. As Agent, you may also be authorized to transfer property to the Principal’s Revocable Living Trust (if applicable), to make withdrawals from retirement assets, deposit checks, file taxes, or to do anything else that an incapacitated Principal might need handled for them regarding financial or buisness matters.  

The Power of Attorney also directs when an Agent may act (e.g., immediately or upon incapacity). Without a Power of Attorney, a costly Guardianship or Conservatorship would be needed in the event of incapacity. 

The Power of Attorney does not authorize you as Agent to make health-care decisions for the Principal. 

Important Information for Agents: First, be sure to sign the Agent’s Certification page, accepting your role as Agent (towards the back of the document).  

If you have not signed the Agent’s Certification page you are not authorized to act as Agent for the Principal.  

Second, be sure you have the original or a copy of this document to prove your authority to act. 

Unless specified otherwise, your authority as Agent will continue even if the Principal becomes incapacitated until he or she dies or revokes the Power of Attorney, or until you, as Agent, resign or are unable to act.  

You must keep the Principal’s funds and other property separate from your funds and other property. A court can take away the powers of an Agent if it finds an Agent is not serving properly.  

When signing to accept your role as Agent for the Principal, you are stating that you understand that if you act outside the authority granted under the POA or violate applicable law, you may be held liable for any damages caused by your violation. 

As such, we do not recommend that you sign accepting your appointment until it becomes necessary for you to act on the Principal’s behalf. This is so you cannot be deemed to have accepted responsibility (and incur liability) as Agent until it is necessary for you to do so.  

As Agent, you have a fiduciary duty to act in the best interests of the Principal.  

Agent’s Duties: When you accept the authority granted under a Power of Attorney, you become a fiduciary and have the same general obligations as the fiduciary duties as Trustee or Personal Representative, as the case may be, and the Principal. This relationship imposes legal duties that continue until you resign, or the Power of Attorney is terminated or revoked.  

You must: do what you know the Principal reasonably expects you to do with the Principal’s property or, if you do not know the Principal’s expectations, the Agent should act in the Principal’s best interests, act in good faith, and do nothing beyond the authority granted in the Power of Attorney.  

Whenever you act for the Principal, disclose your identity in writing or printing the name of the Principal and sign your own name as “Agent” in the following manner: 

(PRINCIPAL’S FIRST AND LAST NAME)  BY (AGENT’S SIGNATURE), AS AGENT 

Except as otherwise provided in the Power of Attorney, you must also: 

  1. Not act for your own benefit;

  2. Avoid conflicts that would impair your ability to act in the Principal’s best interests;

  3. Act with care, competence, and diligence;

  4. Keep a record of all receipts, disbursements, and transactions made on behalf of the Principal;

  5. Cooperate with any person who has authority to make health care decisions for the Principal; and

  6. Not act in a manner inconsistent with the Principal’s testamentary plan. 

Termination of an Agent’s Authority: You must stop acting on behalf of the Principal if you learn of any event that terminates the Power of Attorney or your authority under the Power of Attorney. Events that terminate the Power of Attorney or your authority to act under it include: the death of the Principal, the Principal’s revocation of the Power of Attorney, the occurrence of a termination event stated in the Power of Attorney, or if the purpose of the Power of Attorney is fully accomplished. If you are or were a spouse of the Principal, termination may occur if an action is filed with the court for your separation, annulment, or divorce from the Principal, unless the Principal otherwise provided in the Power of Attorney that such action will not terminate your authority.

To make an appointment, please contact Elle Van Dahlgren Law, LLC by calling 302-407-5009 today.