Power of Attorney Responsibilities

By Tom Streissguth

A power of attorney gives you (the agent) the legal right to act on behalf of someone else (the principal). The power of attorney document may allow you to make decisions about financial matters, medical treatment or living arrangements, or represent the principal in any legal matters. The laws of each state control how a power of attorney may be drawn up.

Specific and General Responsibilities

There are two general types of power of attorney. A "special" or "specific" power of attorney gives you, as the agent, the right to act in a specified matter and no other. You may hold power of attorney only as an agent in a financial transaction, for example, and have no other responsibilities for the principal. A "general" power of attorney gives the agent a broader scope to act on behalf of the principal and to deal with any and all legal and financial matters on the principal's behalf.

Incapacity

An agent with a power of attorney must still follow instruction from the principal at all times, except when the principal is incapacitated. A "durable" power of attorney gives the agent the authority to act in this circumstance. Even then, state laws bar agents from making changes in the last will and testament of a principal, nor may the agent use a power of attorney to carry out unlawful actions, such as falsifying a tax return.

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Authority

A power of attorney normally gives an agent authority to enter into broadly defined or specific financial transactions, such as buying and selling investments, handling trusts, making payments, settling debts, operating a business, handling government benefits, and filing and paying taxes on behalf of the principal. A health care power of attorney authorizes the agent to make decisions on medical care, including efforts to keep the principal alive if he is comatose, terminally ill or unresponsive to treatment. The agent must consult with treating doctors and support his actions with professional medical recommendations and opinions.

Recordkeeping

The agent (also known as the attorney-in-fact) must keep accurate records of transactions and keep copies of documents, court filings, receipts and any other paperwork involved. All relevant documents must be made available to the principal, and in most cases, a principal will require regular reports on any activity carried out on his behalf. The agent must also answer any inquiries from public agencies on his activities.

Considerations

The power of attorney is not the same as guardianship; a guardian has a broader set of legal authority and can make decisions without specific authority to do so on behalf of the principal. In some cases, a power of attorney only takes effect if a specific event has taken place; this is known as a "springing" power of attorney. A principal can revoke a power of attorney at any time; if the principal dies, then the power of attorney lapses.

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Is Power of Attorney Valid After Death?

References

Related articles

Power of Attorney Rules

A power of attorney is a legal relationship in which one person (the principal) grants another party (the agent) the authority to perform legal acts on behalf of the principal. Although third parties are not obligated to honor a power of attorney, they are protected from legal liability if they do honor it. Powers of attorney are regulated under state law.

Can a Power of Attorney Charge Expenses?

When you are unable or unavailable to accomplish certain tasks, such as accessing your bank accounts, you may need an agent to act for you. A power of attorney is the document that gives your agent this authority, and it usually provides for reimbursement for reasonable expenses. State laws vary on the types of expenses for which an agent can be reimbursed, but you often can adapt these rules to fit your situation.

Durable Power of Attorney in Arkansas

A power of attorney is a document that gives someone else the ability to act on your behalf. The person granting the power to act on her behalf is referred to as the principal. The agent, on the other hand, is the person receiving the power to act on behalf of the principal. The document itself contains language that dictates which powers are granted; the Arkansas Uniform Power of Attorney Act sets the rules for powers of attorney in Arkansas.

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