Powers and Duties of an Attorney-in-Fact
Your attorney-in-fact only has the financial authority you grant him in the document creating a durable power of attorney for finances. Generally, an attorney-in-fact has broad authority to:
- use your assets to pay your everyday expenses and those of your family
- handle transactions with financial institutions
- buy, sell, maintain, and mortgage property
- file and pay your taxes
- manage your retirement accounts
- collect benefits from government programs or civil or military service
Beyond routine financial matters, you may want to authorize your attorney-in-fact to:
- invest your money in securities
- buy and sell insurance policies and annuities for you
- operate your small business
- claim or disclaim property you get from others
- represent you in court
An attorney-in-fact cannot:
- make healthcare decisions for you
- marry on your behalf
- adopt for you
- vote in public elections on your behalf
- make a will for you
The attorney-in-fact you appoint in your durable power of attorney is known as a "fiduciary," which is someone who holds a position of trust and must act in your best interests. Thus, your attorney-in-fact is required to:
- be careful with your property by handling it honestly and prudently
- avoid conflicts of interest
- keep your property completely separate from her own
- keep adequate records for all transactions made on your behalf
An attorney-in-fact is not directly supervised by a court and, as such, is not required to file reports with any government agencies. However, a loved one who has doubts about the attorney-in-fact may ask a court to order the attorney-in-fact to take certain actions or ask a court to terminate the power of attorney-in-fact and appoint a conservator to supervise your affairs. If a conservator is appointed for you, the attorney-in-fact has to account to the conservator. Some states have statutes that set out specific procedures for such court actions.
Copyright 2012 LexisNexis, a division of Reed Elsevier Inc.
