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An Attorney-in-Fact is an individual appointed through a power of attorney to perform legal acts and make decisions on behalf of another person. The appointed individual can have broad or limited legal authority to make decisions about the principal’s property, finances, or medical care. However, this role does not necessarily require the person to be a licensed attorney.


The phonetics of the keyword “Attorney-in-Fact” is /əˈtɜːrni ɪn ˈfækt/.

Key Takeaways

  • An Attorney-in-Fact is a person or organization appointed to manage personal, business, or legal matters for another person, named as the principal. The duties and responsibilities of an Attorney-in-Fact often include financial transactions, making healthcare decisions, or representing the principal in other legal matters.
  • The power granted to an Attorney-in-Fact may be limited to specific tasks or broad enough to handle numerous affairs. However, these powers are temporary and cease to exist when the principal dies or becomes incapacitated unless specifically stated in the power of attorney document that they are “durable.”
  • An Attorney-in-Fact should be a trustworthy individual, as he or she will have access to sensitive personal, financial, and legal information. The principal has the right to revoke the power of attorney at any time, provided they are not mentally incapacitated.


The term “Attorney-in-Fact” is crucial in business and finance because it refers to a person who is authorized to perform business-related transactions on behalf of someone else (the principal). This includes both general and specific legal decisions, depending on the range of control designated by the Power of Attorney agreement. This role is vital in situations where the principal is unable to conduct business due to health conditions, unavailability, or other impairments. The designated Attorney-in-Fact ensures the principal’s business continues to operate smoothly by making legal and financial decisions within the framework set out in the Power of Attorney.


The role of an attorney-in-fact is vital primarily in managing the affairs of individuals who, due to circumstances such as disease, travel or age, are unable to handle their financial affairs personally. An attorney-in-fact is appointed through a Power of Attorney (POA) document to act on behalf of an individual, known as the principal, in executing financial transactions, making business decisions or managing legal affairs. The level of control granted can range from limited authority, where the attorney-in-fact can only make certain decisions, to comprehensive authority where they can manage almost all the principal’s affairs.

The primary function of an attorney-in-fact is to protect the interests of the principal. When you appoint an attorney-in-fact, you trust them to act in your best interests and with your explicit permission. They can perform tasks like paying your bills, managing your investments, or even making healthcare decisions for you, depending on what’s stated in the POA. By having an attorney-in-fact, individuals ensure continuity in the management of their affairs even in their absence or incapacity, providing crucial peace of mind.


1. Power of Attorney for Elderly Parents: An elderly parent may assign their child as their Attorney-in-Fact during declining health or poor mental condition. With a power of Attorney, their child will have the authority to make financial decisions, manage properties, and handle bank transactions on behalf of their parent.

2. Managing Business Operations: If a business owner needs to be absent for an extended period, they might designate an Attorney-in-Fact to handle the daily operations of their business. This person can pay bills, manage payroll, negotiate contracts and more, ensuring the smooth running of the business in the owner’s absence.

3. Real Estate Transactions: If a person cannot physically be present for a real estate closing, they may assign an Attorney-in-Fact to attend and sign documents on their behalf. For example, if someone is purchasing or selling a house in another state or country, they can appoint an Attorney-in-Fact to complete the transaction in their place.

Frequently Asked Questions(FAQ)

What is an Attorney-in-Fact?

An Attorney-in-Fact is a person who is authorized to perform business or legal acts on behalf of another person, through a legal document known as Power of Attorney.

Who can appoint an Attorney-in-Fact?

Any competent person can appoint an Attorney-in-Fact. The person appointing is known as the principal.

What are the duties and responsibilities of an Attorney-in-Fact?

The Attorney-in-Fact can have a broad or limited legal authority to make decisions about the principal’s property, finances, or medical care. The obligations of the Attorney-in-Fact are typically laid out in the Power of Attorney document.

Does an Attorney-in-Fact need to be a lawyer?

No, an Attorney-in-Fact does not need to be a lawyer. The role simply represents the principal in certain legal matters and does not equate to providing legal counsel or services.

What happens if the principal becomes incapacitated?

Whether the powers of an Attorney-in-Fact extend after the principal becomes incapacitated depends on the type of Power of Attorney document. If it is a durable Power of Attorney, the Attorney-in-Fact retains the authority. However, if it is non-durable, the powers cease when the principal becomes incapacitated.

How can I revoke the powers of my Attorney-in-Fact?

The principal can revoke the powers of an Attorney-in-Fact at any time as long as they are still mentally competent. This is usually done by writing a formal revocation letter.

How does an Attorney-in-Fact differ from an executor?

An Attorney-in-Fact is responsible for making decisions while the principal is alive, whereas an executor is responsible for handling an estate once the principal has passed away.

Can there be more than one Attorney-in-Fact?

Yes, a person can appoint more than one Attorney-in-Fact. They can all have equal authority or have designated areas of authority.

Can Attorney-in-Fact make decisions regarding the Principal’s health care?

It depends on the specific terms laid out in the Power of Attorney document. A health care or medical power of attorney would specify the Attorney-in-Fact’s rights to make healthcare decisions on the principal’s behalf.

Is the Attorney-in-Fact compensated?

This depends on the agreement between the principal and the Attorney-in-Fact. Some are compensated for their time and expenses, while others are not. This should be detailed in the Power of Attorney document.

Related Finance Terms

  • Power of Attorney: A legal document that gives the attorney-in-fact the authority to act on behalf of the principal in specific, general or all matters.
  • Principal: The person who appoints the attorney-in-fact to act on their behalf. Typically a principal can be an individual, corporation, or an entity.
  • Fiduciary Duty: The responsibility that the attorney-in-fact has to act in the best interest of the principal. They must act honestly, in good faith, and avoid conflicts of interest.
  • Durable Power of Attorney: A specific type of power of attorney that remains effective even if the principal becomes mentally incapacitated.
  • Revocation: The process of canceling or nullifying a power of attorney. The principal has the right to terminate the attorney-in-fact’s authority at any time.

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