Myths About Attorney-in-Fact Roles Debunked

Understanding the Role of Attorney-in-Fact

The term "attorney-in-fact" often causes confusion and misunderstanding. Many people assume it is synonymous with a lawyer, but this is not the case. An attorney-in-fact is an individual appointed to act on behalf of another via a power of attorney document. Unlike attorneys-at-law, attorneys-in-fact do not need to have a law degree or license to practice law. Their primary role is to manage affairs as designated by the principal, the person who grants this authority.

Myth: Attorneys-in-Fact Have Unlimited Power

One common misconception is that an attorney-in-fact has unlimited power over the principal's affairs. In reality, the powers granted are limited to those specified in the power of attorney document. This means the attorney-in-fact can only make decisions within the scope outlined by the principal, such as handling financial matters, managing property, or making healthcare decisions.

It is crucial for the principal to carefully consider and clearly define the powers being granted. Additionally, the principal can revoke these powers at any time if they believe the attorney-in-fact is not acting in their best interest.

Myth: Once Granted, Power of Attorney Cannot Be Revoked

Another myth is that once power of attorney is granted, it cannot be revoked. This is false; a principal can revoke a power of attorney at any time, as long as they are mentally competent. The revocation process usually involves providing a written notice to the attorney-in-fact and any relevant third parties such as banks or healthcare providers.

Myth: An Attorney-in-Fact Can Change a Will

Many believe that an attorney-in-fact has the authority to alter or change a principal's will. This is not true. A power of attorney does not grant the right to change or create a will on behalf of the principal. The role is strictly limited to managing affairs during the principal's lifetime and does not extend to posthumous decisions.

It's essential for individuals to understand that any changes to a will must be made directly by the principal while they are still competent to make those decisions.

Choosing an Attorney-in-Fact Wisely

The selection of an attorney-in-fact should be done with careful thought and consideration. It is important to choose someone trustworthy, responsible, and capable of managing the specified duties. This person will have a significant impact on your personal and financial affairs, so it’s crucial to ensure they are reliable.

Conclusion: Clarifying the Role

Debunking these myths is essential for providing clarity about what an attorney-in-fact can and cannot do. By understanding these roles more clearly, individuals can make informed decisions when appointing someone to manage their affairs under a power of attorney. Always consult with legal professionals when drafting or altering legal documents to ensure your wishes are accurately represented and safeguarded.