What is an Attorney in Fact?

Q: What are the responsibilities of an agent under a power of attorney?

An agent under a power of attorney must act according to your instructions and in your best interest. Their responsibilities include managing your finances, keeping accurate records, and avoiding any personal gain from transactions unless permitted. They cannot make gifts or transfer your property without your explicit consent.

Q: Can I revoke a power of attorney at any time?

Yes, you can revoke a power of attorney at any time as long as you are mentally competent. To revoke it, you should provide written notice to your agent and any relevant institutions. It's also advisable to create a new power of attorney document if you wish to appoint someone else.

Q: What happens if my agent misuses their power?

If your agent misuses their power, they may be held legally accountable for any losses incurred. You can take legal action against them for breach of fiduciary duty. It's important to monitor your agent's activities and seek legal advice if you suspect misuse.

Full question:

In the proxy forms, I want to appoint a non-attorney to represent me at a meeting, but the language say 'do hereby constitute, appoint and name-as my true and lawful attorney and agent for me-. If the person is not an attorney, should I take that word out of the language and just keep the 'agent' part?

Category: Power of Attorney
Date: 04/07/2025
State: Texas

Answer:

The person designated to be the agent assumes certain responsibilities. The agent is obligated to act in the principal's best interest. The agent must always follow the principal's directions. Agents are "fiduciaries," which means that the agent must act with the highest degree of good faith in behalf of their principals. The agent must keep his money separate from the principal's; keep detailed records concerning all transactions he engages in on the principal's behalf; not stand to profit by any transaction where the agent represents the principal's interests; and not make a gift or otherwise transfer any of the principal's money, personal property, or real estate to himself unless the power of attorney explicitly states he can do so.

Fiduciaries owe two main duties to their clients: a duty of loyalty and a duty of care. The duty of loyalty requires that fiduciaries act solely in the interest of their clients, rather than in their own interest. Thus fiduciaries must not derive any direct or indirect profit from their position, and must avoid potential conflicts of interest. The duty of care requires that fiduciaries perform their functions with a high level of competence and thoroughness, in accordance with industry standards.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a non-attorney act as a power of attorney?

Yes, a non-attorney can act as your agent under a power of attorney. The key requirement is that the person you appoint must be trustworthy and able to act in your best interest. They will have fiduciary duties, meaning they must manage your affairs responsibly and avoid conflicts of interest. It's essential to clearly outline their responsibilities in the document.

What does it mean to be a fiduciary?

A fiduciary is someone who has the legal responsibility to act in another person's best interest. This includes duties of loyalty and care. As a fiduciary, your agent must prioritize your interests, avoid conflicts, and manage your affairs competently. This relationship is based on trust and requires transparency in all transactions.