Empowering Decision-Making: Understanding the Attorney-in-Fact Role and Its Implications


An attorney-in-fact: Understanding their role, responsibilities, and legal implications

An attorney-in-fact, often referred to as an “agent,” plays a pivotal role in various legal, financial, and personal matters. This comprehensive article explores the nuances of appointing an attorney-in-fact, from understanding their role to the legal implications involved. Whether you’re considering designating one or becoming one yourself, delve into the intricacies of this critical legal designation.

An attorney-in-fact: empowering decision-making

An attorney-in-fact, also known as an “agent,” is a person entrusted with the authority to make decisions and act on behalf of another individual, known as the “principal.” This delegation of power is typically formalized through a legal instrument known as a “power of attorney” (POA). The role of an attorney-in-fact is multifaceted and can encompass a wide range of responsibilities, including handling financial, legal, and personal matters for the principal.

Understanding the power of attorney

The cornerstone of an attorney-in-fact’s authority is the power of attorney document. This legally binding document grants specific powers and responsibilities to the attorney-in-fact, as outlined by the principal. The scope of these powers can vary widely, depending on the specific wishes and needs of the principal.

The power of attorney document may grant general or limited authority:

  • General power of attorney: Under a general POA, the attorney-in-fact is empowered to make a wide range of decisions and take actions on behalf of the principal. This could include managing finances, signing legal documents, and making healthcare decisions.
  • Limited power of attorney: A limited or special POA restricts the attorney-in-fact’s authority to specific transactions or areas of the principal’s life. For example, it may grant the authority to handle a real estate transaction but not make healthcare decisions.

Who can be an attorney-in-fact?

One crucial aspect of designating an attorney-in-fact is that they need not be a legal professional. In fact, attorneys-in-fact often include family members, close friends, or trusted individuals who are willing to take on the responsibility. This democratizes the process and ensures that the person chosen is someone the principal has confidence in.

Roles and responsibilities of an attorney-in-fact

The roles and responsibilities of an attorney-in-fact can be extensive and vary depending on the terms specified in the power of attorney document. Some common tasks that an attorney-in-fact may perform include:

  • Managing financial accounts, including banking and investment accounts.
  • Buying, selling, or managing real estate properties.
  • Signing legal documents, contracts, and agreements on behalf of the principal.
  • Making healthcare decisions, including consenting to medical treatments.
  • Managing day-to-day financial affairs, such as paying bills and taxes.

It’s crucial for the attorney-in-fact to act in the best interests of the principal and adhere to any specific instructions or guidelines outlined in the POA document. Moreover, they are legally obligated to keep the principal’s affairs confidential and maintain accurate records of all actions taken on the principal’s behalf.

Attorney-in-fact vs. attorney-at-law

It’s important to distinguish between an attorney-in-fact and an attorney-at-law (commonly referred to as a lawyer). While both roles involve legal matters, they serve distinct functions:

  • Attorney-in-fact: An attorney-in-fact is an individual who makes decisions and takes actions on behalf of the principal, following the powers granted in the POA. They do not provide legal advice or representation in a court of law.
  • Attorney-at-law: An attorney-at-law is a licensed legal professional who is qualified to practice law. They provide legal counsel, represent clients in legal matters, and offer expert guidance in navigating the legal system.

While an attorney-in-fact does not require legal expertise, their role is crucial in executing the principal’s wishes and managing their affairs.

Types of power of attorney

Power of attorney documents can be further categorized based on their applicability and duration:

1. Durable power of attorney

A durable power of attorney is designed to remain effective even if the principal becomes incapacitated. In typical scenarios, a power of attorney terminates when the principal:

  • Passes away
  • Becomes incapacitated
  • Revokes it through a formal notice

However, a durable power of attorney continues to be valid if the principal becomes unable to make decisions, ensuring that the attorney-in-fact can continue to act on their behalf, especially in matters related to finance and healthcare. This provides an added layer of protection for the principal’s interests.

2. Springing power of attorney

A springing power of attorney is a specific type of durable power of attorney that only becomes effective upon the occurrence of a triggering event, such as the principal’s incapacitation. Until that event occurs, the attorney-in-fact does not have authority.

It is advisable to name one or more successors in a springing power of attorney document in case the originally designated attorney-in-fact is unavailable or unwilling to assume the role due to changed circumstances.

Why designate an attorney-in-fact?

There are various compelling reasons to appoint an attorney-in-fact:

  • Convenience: An attorney-in-fact can handle important matters on behalf of the principal, saving them time and effort, particularly when dealing with legal or financial transactions.
  • Incapacity: In cases where the principal may become incapacitated due to illness or age, having a trusted attorney-in-fact ensures that their affairs are managed effectively and in line with their wishes.
  • Expertise: Attorneys-in-fact can bring expertise and knowledge to complex financial or legal matters, ensuring that the best decisions are made on behalf of the principal.
  • Continuity: Durable powers of attorney provide continuity in decision-making, even in the face of incapacitation, guaranteeing that the principal’s interests are safeguarded.

Appointing an attorney-in-fact is a significant decision that should not be taken lightly. The chosen individual(s) should be someone the principal trusts implicitly. Additionally, it’s crucial to specify whether decisions can be made by majority vote or require unanimous agreement if multiple attorneys-in-fact are appointed.

Pros and cons of appointing an attorney-in-fact


Here is a list of the benefits and drawbacks to consider when appointing an attorney-in-fact.

  • Convenience in managing legal and financial matters.
  • Ensures decisions align with the principal’s wishes, even in their absence.
  • Access to expertise and guidance in complex matters.
  • Continuity in decision-making, particularly with durable powers of attorney.
  • Loss of direct control over certain aspects of one’s life and affairs.
  • Reliance on the attorney-in-fact’s judgment and trustworthiness.
  • Potential for conflicts of interest or misuse of authority.
  • Complexities in managing multiple attorneys-in-fact and decision-making criteria.


Designating an attorney-in-fact is a pivotal decision that can significantly impact one’s life, especially in times of incapacity or when complex legal and financial matters arise. Understanding the roles, responsibilities, and legal implications of appointing an attorney-in-fact is essential for both principals and potential attorneys-in-fact.

By carefully considering the pros and cons, selecting trusted individuals, and creating a clear power of attorney document, individuals can ensure that their interests are safeguarded and that their designated attorney-in-fact can act in their best interests.

Frequently asked questions

Can an attorney-in-fact be changed after designation?

Yes, an attorney-in-fact can typically be changed by revoking the existing power of attorney document and creating a new one. However, the specific process may vary depending on local laws and the terms of the original document.

Is it possible to have multiple attorneys-in-fact?

Yes, it is possible to appoint multiple attorneys-in-fact. The power of attorney document should clearly specify whether decisions require a majority vote or unanimous agreement among the attorneys-in-fact.

What happens if the principal does not specify an attorney-in-fact?

If the principal does not designate an attorney-in-fact through a power of attorney document and becomes incapacitated, a court may appoint a guardian or conservator to manage their affairs.

Can an attorney-in-fact make decisions against the principal’s wishes?

No, an attorney-in-fact is legally obligated to make decisions that align with the principal’s wishes and adhere to the instructions provided in the power of attorney document. Acting against the principal’s wishes could lead to legal consequences.

What legal recourse does the principal have if the attorney-in-fact abuses their authority?

If the attorney-in-fact abuses their authority or acts against the principal’s interests, the principal or their legal representative can take legal action against the attorney-in-fact. This may involve revoking the power of attorney, pursuing civil litigation, or reporting misconduct to relevant authorities.

Key takeaways

  • Appointing an attorney-in-fact empowers individuals to make decisions on their behalf in various legal, financial, and personal matters.
  • An attorney-in-fact is designated through a power of attorney (POA) document, which can grant general or limited authority.
  • Attorneys-in-fact need not be lawyers; they can be trusted family members or friends.
  • The roles and responsibilities of an attorney-in-fact vary based on the terms outlined in the POA.
  • Attorney-in-fact vs. attorney-at-law: These roles serve different functions, with attorneys-in-fact making decisions for the principal and attorneys-at-law providing legal counsel and representation.
  • Durable and springing powers of attorney offer options for continuity of authority, even in cases of incapacitation.
  • Consider appointing an attorney-in-fact for convenience, in cases of incapacity, for expertise, and to ensure continuity in decision-making.
  • Pros of appointing an attorney-in-fact include convenience, alignment with the principal’s wishes, access to expertise, and decision-making continuity.
  • Cons include a loss of direct control, reliance on the attorney-in-fact’s judgment, potential conflicts of interest, and complexities with multiple attorneys-in-fact.
  • If an attorney-in-fact abuses their authority, legal recourse is available, including revoking the POA and pursuing litigation.
View Article Sources
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  6. How to Pay for a Lawyer When You’re Short On Cash – SuperMoney