How Does My Agent Use My Power of Attorney?

How Does My Agent Use My Power of Attorney?

Your agent should keep the original of your power of attorney.  You should keep a copy. Unless a statute requires an original, a photocopy or electronically transmitted copy of your power of attorney has the same legal effect as the original.  Nevertheless, your agent may be asked to show the original.  A business or person being asked to accept your agent’s authority may want to copy your power of attorney.  Under the Uniform Power of Attorney Act, your agent can also give the business or person a written certification of the validity of your power of attorney and of his or her authority to act on your behalf.

Your agent has the authority to act for you in dealings with other persons or businesses.  It is important that your power of attorney clearly identify what matters your agent can handle for you (this is called the agent’s scope of authority).  Your agent has the power to bind you on matters with the scope of his or her authority just as if you did the act yourself.   A business, person or entity acting in good faith can legally rely on your power of attorney unless they know that your agent is not authorized to act for you.  For example, they may know that your power of attorney has been terminated or that your agent does not have the authority for the transaction.

 

It is very important that your agent discloses to the other person or business that (s)he is acting for you and not for him or herself.  Otherwise, your agent may be personally liable to the person or business or entity.   When your agent signs for you, (s)he agent should write or print your name, then sign his or her name and disclose that (s)he is signing as your agent.  For example: “John Smith, by Sally Smith, his Agent” or "Sally Smith, signing as agent for John Smith and not individually."

If your power of attorney is properly prepared and notarized, someone doing business in a State that has adopted the Uniform Power of Attorney Act cannot require an additional or different power of attorney.  The person, business or entity is legally required to accept and honor your power of attorney within 7 business days unless it:

(1) Would have no requirement to engage in the transaction with you directly;

(2) Knows your power of attorney has terminated or been revoked;

(3) Believes in good faith belief that your power of attorney is invalid;

(4) Believes your agent does not have the authority to perform the specific act or transaction;

(5) Believes engaging in the transaction with either you or your agent would violate Federal law; or

(6) Knows that someone has reported to the Department of Health and Human Services that your agent, or someone acting for or with your agent, may be physically or financially abusing, neglecting, exploiting or abandoning you.

The person, business or entity can also ask your agent to certify in writing that your power of attorney is valid and that (s)he has authority for the transaction.  The business or entity can rely on that certification without further investigation and must accept your power of attorney within 5 business days after it receives the certification.  If they do not, you or your agent can obtain a judge's order requiring them to accept your power of attorney and the person, business or entity is liable for your and/or your agent's attorney's fees and costs.

 

The person, business or entity can refuse to accept your notarized power of attorney unless you provide an English translation of your power of attorney or an opinion of a lawyer on any legal question about the power of attorney.  The request for an attorney’s opinion must be in writing and give a reason for requesting the opinion.  If the person, business or entity makes the request within 7 business days of receiving the power of attorney, you bear the expense of providing the translation or opinion.  If the person, business or entity makes the request after 7 business days, they bear the expense.  The person, business or entity can rely on the translation or opinion without further investigation and must accept your power of attorney within 5 business days of receiving the translation or opinion.

Thomas T. Tornow has 33 years of experience helping people with their powers of attorney.  Contact his office at www.tornowlaw.com to schedule your free consultation.

Thomas T. Tornow, P.C.

By: Thomas T. Tornow

This post is exclusively for informational purposes. It is not legal advice. Viewing this post, using information from it, or communicating through this blog does not create an attorney-client relationship. Thomas T. Tornow, P.C. is not liable for the use or interpretation of information on this blog and expressly disclaims all liability for any actions you may or may not take based on the content of this blog.