How to Be a Power of Attorney Agent
By: AARP Outreach & Services Source: AARP.org Date Posted:
Has someone chosen you to be a power of attorney agent for them? Then you have been given an important responsibility. Fulfill this role with care. As an agent, your primary job is to carry out your loved one's specific directions. You must also make decisions the way he or she would make them.
What You Should Know
There is no such thing as a "standard" Power of Attorney. That's because this legal document is tailored to each individual's situation. As a power of attorney agent, you must be familiar with all the terms of your power of attorney document.
A power of attorney is not an invitation to take charge of all your relative's affairs and do things your way. Your role as an agent is simply to carry out the instructions and wishes of your relative. Talk with your relative in detail about what he or she wants you to do and does not want you to do.
Using the Document
Make several copies of the original power of attorney. Give a copy to each entity with which you transact business on behalf of your relative. Banks, insurance companies, and stockbrokers sometimes insist that you use their power of attorney forms. Find out what forms these institutions require. Have your relative sign these forms while he or she is still able.
Keep a list of who has a copy of the power of attorney document. When signing documents as an agent, always make clear that you are signing on behalf of your relative. Sign your name and follow it with the phrase, "as agent for _____." Complete the phrase with the name of your relative. If you sign correctly, you will avoid personal liability.
Full Capacity
Your relative cannot sign a power of attorney unless he or she has the capacity to understand what he or she is doing. If your relative becomes incapacitated after signing a power of attorney, your authority as an agent comes to an end unless your relative signed a durable power of attorney.
Advice for Agents
- Make decisions the way your relative would make them, if he or she were able.
- You have a fiduciary duty to manage your relative's assets carefully and to act in his or her best interest. If you don't do this, you could be sued for abusing the trust given to you. Always keep your relative's assets separate from yours. Keep good records of all your relative's resources and your actions.
- Avoid misunderstandings by communicating with other family members about how you are managing your relative's affairs.
For More Information
AARP Legal Services Network: AARP members in a growing number of communities can get a financial power of attorney for $35 from a Legal Services Network attorney. To find an attorney in your area, visit the LSN Web site and click on "Find a Lawyer."
The Wisconsin Bar: The booklet "Powers of Attorney and Trusts: Duties and Rights as Agents and Trustees," published by the Consumer Protection Committee of the Wisconsin Bar, explains an agent's duties. Although written for agents in Wisconsin, the advice applies to agents in any state.
Nolo Press: The article "Durable Power of Attorney for Finances FAQ," published by Nolo Press, provides information about powers of attorney.
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