“Knock-Knock, Who's there...? Power of Attorney!!

A common mistake people unknowingly make has always been considering a Power of Attorney as an individual, and not a document, legal instrument or verbal agreement.  Today, I will play the role of a White Knight and save thy self from further mortification and warn you of the repeated error a great few of people, whether lay-men or professional.  

A Power of Attorney is a document containing an authorization for one to act as an Agent of the Principal which terminates upon death and/or terms set and agreed to by both Agent and Principal. 

For instance, you may own a business, or due to your schedule or are unable to attend industry functions, meetings and/or fulfill fiduciary obligations, whether to make decisions, sign documents or purchases.  In this case in point, you may choose to grant an Agent or Agency, Power of Attorney.  The Agent and/or Agency will implement the duties you would perform if you were present, of course, within the boundaries of the established legally binding terms of the Power of Attorney, if applicable.

 

Regarding an Agent/Agency, the most common terminology in referring to a person in said capacity would be Attorney-in-Fact, not to be confused with Attorney-at-Law. As stated above, an Attorney-in-Fact is authorized by Power of Attorney to act on the authorizer's behalf, in this case the Principal, for all matters outside a court of law.   Attorney-in-Fact functions under the terms of the Power of Attorney and are not restricted, can represent the Principal in any transaction unless otherwise stated and expressed verbally or in a written agreement known as a Special/Limited Power of Attorney, again the Attorney-in-Fact is limited to matters outside a court of law.  A Special/Limited Power of Attorney is when an Agent/Agency is acting in a restricted capacity.  This document will specify the manner and situation in which an Attorney-in-Fact can represent the Principal. 

An Attorney-at-Law should never be confused with an Attorney-in-Fact.  An Attorney-at-Law is a person admitted to practice law in at least one jurisdiction and sanctioned to fulfill criminal and civil legal functions on behalf of clients. Wherein an Attorney-in-Fact is not authorized to practice law or provide legal advice and in many jurisdictions may and will be punished for carrying out such acts. 

In closing, a Power of Attorney is a valuable instrument for persons with extremely eventful lives or in ailing health.  Albeit, when used properly can place ease of multi-tasking abilities for the Principal, but in the same breath can be financial, emotionally and physically detrimental.  For a quick information sessionl, see the video below.