An attorney-in-fact is a person you legally authorize to act on your behalf through a written power of attorney document. Despite the confusing name, this individual does not need to be a lawyer—they're simply someone you trust enough to handle financial transactions, manage property, pay bills, or make other important decisions when you cannot do so yourself.
The term "attorney" here comes from old agency law, meaning "one appointed to act for another," rather than from bar admission or legal practice. This distinction is crucial for understanding who you can appoint to this vital role.
Understanding State-Specific Rules
Power of attorney rules vary significantly by U.S. state. New York's General Obligations Law, California's Probate Code, and statutes in other jurisdictions each impose different requirements for creating valid POA documents.
Important Legal Note
You should always seek legal guidance from a licensed attorney in your area before signing anything. This matters because an improperly executed document might be rejected by banks, title companies, or courts when you need it most.
Why This Matters to You
Why should everyday people care about this topic? Whether you're helping aging parents plan for the future, preparing for an extended trip abroad, facing a sudden illness, or simply thinking ahead for emergencies, understanding what an attorney-in-fact can and cannot do is essential.
At Notary On Demand, many families ask similar planning questions when they're arranging for someone to manage their finances and their loved ones' care—including ongoing medical decisions, property management, and day-to-day routines for their family members.
Key Powers of an Attorney-in-Fact
Depending on the type of Power of Attorney (General, Limited, or Durable), an attorney-in-fact may have authority to:
- Manage Finances: Access bank accounts, pay bills, and manage investments.
- Handle Real Estate: Buy, sell, or lease property on your behalf.
- Make Business Decisions: Operate your small business or sign contracts.
- File Taxes: Sign and submit tax returns with the IRS.
How to Choose the Right Person
Selecting an attorney-in-fact is a decision of immense trust. This person will essentially "step into your shoes" legally. Look for someone who is:
- Responsible: Has a track record of managing their own affairs well.
- Trustworthy: Will act in your best interest (fiduciary duty), not their own.
- Available: Lives nearby or is responsive enough to handle urgent matters.
- Organized: Can keep detailed records of all transactions made on your behalf.