Answers to Frequently Asked Power of Attorney Questions
Most “general” Power of Attorney documents have a specific provision about transferring property contained within them, granting the attorney-in-fact the ability to undertake such a property transfer process.
But if the language about being able to transfer property is not stated specifically in the document (and different POAs are drafted differently), then the attorney-in-fact most likely lacks the authority to transfer property.
Courts in most states hold the Attorney-in-Fact (the person granted the powers under the document) in a fiduciary capacity — in other words, the attorney-in-fact owes the person who gave the power of attorney (the grantor) a fiduciary duty.
The person creating a Power of Attorney document can still make his or her own life decisions.
A Power of Attorney document is generally effective only during the life of the person executing it. As such, the Attorney-in-Fact has no standing to access any assets of the estate by law.
In most cases, unless provided for in the power of attorney document, compensation is not paid. The person appointed as attorney-in-fact may be entitled to cover any out of pocket expenses incurred in performing his or her duties.
Standard Legal suggests that SEPARATE Power of Attorney documents be created for and signed by each person individually — even for long-time married couples.
“Ask Standard Legal” cannot state if an existing Power of Attorney document is still valid after the death of one of the persons named “Attorney-in-Fact”. A full review of that document would be required to see if any provisions of the document address what happens should one of the named Attorneys-in-Fact dies.
The signature of the attorney-in-fact must simply designate that the attorney is acting in a capacity on behalf of the principal.
“Ask Standard Legal” is not aware of any situation where a Power of Attorney can be used by the attorney-in-fact to sign a Bankruptcy petition on behalf of the grantor.
A Power of Attorney document is created and signed by a grantor to allow one person to conduct business on behalf of another.
Typically, a Power of Attorney document must specify the type(s) of business that can be conducted on behalf of the person granting the Power of Attorney (or grant permission for ‘all types of personal business’).
So intent matters.