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How to Sign as Power of Attorney

Posted on: January 30, 2025

What Is Power of Attorney?

  • Power of attorney (POA) is a legal document granting one person, known as the agent or attorney-in-fact, the authority to act on behalf of another, referred to as the principal.
  • POA is commonly used to manage financial, legal, or healthcare decisions when the principal is unable to do so.
  • The scope of authority depends on the type of POA, such as general, limited, or durable.
  • Learn more about POA basics from the Legal Information Institute.

Types of Power of Attorney

  • General Power of Attorney: Provides broad authority to the agent for managing financial and legal matters.
  • Limited Power of Attorney: Grants authority for specific tasks or a limited timeframe.
  • Durable Power of Attorney: Remains effective even if the principal becomes incapacitated.
  • Healthcare Power of Attorney: Allows the agent to make medical decisions on the principal’s behalf.

How to Sign as Power of Attorney

  • Include Your Title: When signing on behalf of the principal, include your title as “Attorney-in-Fact” or “Power of Attorney.”
  • Use the Proper Format: Always indicate that you are signing in your capacity as an agent, not personally. For example:
    • [Principal’s Name], by [Your Name], as Attorney-in-Fact.
    • [Your Name], Attorney-in-Fact for [Principal’s Name].
  • Follow Legal Requirements: Check the POA document and state laws for specific signing requirements, such as witness or notary acknowledgments.
  • For detailed guidance, refer to the National Notary Association.

When to Use Your Authority as Power of Attorney

  • POA is used when the principal explicitly authorizes you to act on their behalf for tasks such as signing contracts, managing finances, or making healthcare decisions.
  • Ensure that your actions fall within the scope defined in the POA document. Acting beyond your authority may result in legal consequences.

Responsibilities as an Agent

  • Fiduciary Duty: Act in the principal’s best interest, avoiding conflicts of interest and self-dealing.
  • Record-Keeping: Maintain detailed records of transactions and decisions made on behalf of the principal.
  • Communication: Keep the principal and other relevant parties informed about decisions and actions taken.

Limitations of Power of Attorney

  • An agent cannot use POA to override the principal’s decisions unless the principal is incapacitated and the POA explicitly grants such authority.
  • Certain actions, such as amending a will or making personal decisions, may not be allowed under POA.
  • For a complete understanding of limitations, consult the American Bar Association (ABA).

How to Avoid Common Mistakes When Signing

  • Misusing Authority: Ensure your actions are authorized by the POA document and comply with state laws.
  • Signing Incorrectly: Failing to include your title as “Attorney-in-Fact” may result in personal liability.
  • Overstepping Bounds: Acting outside the scope of authority outlined in the POA can lead to legal disputes.

Notarizing and Witnessing Requirements

  • Some states require notarization or witnessing of documents signed under POA to ensure authenticity.
  • Always check state-specific requirements and follow the instructions outlined in the POA document.

How to Revoke or End Power of Attorney

  • The principal can revoke POA at any time by notifying the agent and relevant institutions in writing.
  • POA automatically ends upon the principal’s death, unless otherwise specified.
  • Durable POA remains effective even after incapacitation but not after death.

Using POA for Financial Transactions

  • When managing bank accounts, loans, or other financial matters, provide a copy of the POA document to the institution.
  • Follow the institution’s specific procedures for signing and submitting documents.

Legal Protections for Agents

  • Acting within the authority granted by POA generally shields agents from liability for unintentional errors.
  • Misuse of POA or acting in bad faith, however, may result in civil or criminal penalties.

Why Legal Advice Is Important

  • Consulting an attorney ensures that you understand your rights and obligations under POA.
  • A lawyer can help draft, interpret, or enforce POA documents to ensure compliance with state laws and the principal’s wishes.

For more information or assistance with power of attorney matters, contact The Lawyers Corner. Our experienced legal team is here to guide you through the complexities of POA and ensure you act confidently and responsibly on behalf of your principal.

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